The Income Tax Appellate Tribunal (ITAT) Delhi, ruled last week that matrimonial/penal proceedings launched by the daughter-in-law against an assessee’s entire family is a sufficient reason beyond the control of the assessee and sufficient to condone the delay.
It was noticed during scrutiny proceedings that the assessee, Jay Gee Overseas, while computing the total income claimed deduction qua the expenditure incurred in relation to the income which does not form part of the total income and consequently proceeded to invoke the provisions contained under section 14A of the Income-tax Act, 1961 and thereby made disallowance of Rs.73,703/-. The Assessing Officer also made addition of Rs.3,38,852/- on account of cessation of liability qua the amount due towards sundry creditors on failure of the assessee to furnish any proof to support that liability still exists during the year under assessment. The assessee carried the matter before the Commissioner of Income Tax (Appeals) (CIT(A)) but it was not fruitful as they put forth divorce/ matrimonial/penal proceedings filed by his daughter-in-law against the entire family which was not accepted by CIT (A).
The Tribunal bench comprising of Judicial Member Kuldip Singh and Accountant Member Anil Chaturvedi while allowing the appeal of the Assessee held , “We are of the considered view that multiple matrimonial/penal proceedings launched by the daughter-in- law against the assessee’s entire family is a sufficient reason beyond the control of the assessee and sufficient to condone the delay, hence ld. CIT (A) has erred in not condoning the delay and is ordered to be condoned it and consequently directed to dispose off the appeal on merit, after providing an opportunity of being heard to the assessee. Consequently, the appeal filed by the assessee is allowed.”Subscribe Taxscan AdFree to view the Judgment