ILL- Health and Transfer to New Place constitutes ‘Reasonable Cause’ for Delay in filing Appeal: ITAT imposes Cost of Rs. 10,000 on Assessee [Read Order]

The Income Tax Appellate Tribunal ( ITAT ) Ahmedabad Bench, has recently, in an appeal filed before it held that ill – health and transfer to new place constitutes ‘reasonable cause’ for delay in filing appeal.

The aforesaid observation was made by the Tribunal when an appeal was filed before it filed by an Assessee, as against the order dated 09.12.2015 passed by the Commissioner of Income Tax (Appeals)-4, Vadodara, opposing the Assessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 relating to the Assessment Year (A.Y) 2010-11 and ITA No. 2878/Ahd/2017 filed by the Assessee, against the order dated 09.12.2015 passed by the Commissioner of Income Tax (Appeals)-4, Vadodara confirming the levy of penalty u/s. 271(1)(c) of the Act relating to the same Assessment Year .

The assessee being an individual, Senior Citizen and a retired employee from ONGC Ltd., deriving income from Salary, House Property and other Sources, he had not filed the Return of Income under 139(1) of the Act, following which a notice u/s. 148 was issued on 07.12.2012 to him.

And in response thereto the assesseehad filed its Return of Income declaring total income of Rs. 17,26,770/- and paid taxes of Rs. 4,66,323/-, claiming a refund of Rs. 6,389/.

The assessee being called upon to explain the investment of Rs. 3,45,00,000/- and Rs. 24,23,192/- in various mutual funds of Sundaram BNP Paribas Mutual Funds, Birla Sunlife Mutual Funds, etc., was imposed with a tax demand of Rs. 45,28,230/-, the assessing officer determining the total income at Rs. 1,16,43,370 on account of unexplained investments in Mutual Funds and Rs. 40,18,534 as unexplained money deposited in Axis Bank, HDFC Bank and State Bank of India and along with the CPB interest of Rs. 24,872.

Aggrieved by the same, the assessee had filed an appeal before the CIT(A)-4, Vadodara, who subsequently dismissed the appeal of the assessee on the ground that inspite of ample opportunities given to the assesse he was non- cooperative with the department and further that the conduct of the assesse is contrary to his investment pattern in various mutual funds.

Thus, hearing the opposing contentions of both the sides, the Tribunal ruled:

“Considering the ill health of the assessee and transfer of his residence to New Delhi, we find that the assessee is sufficiently prevented from not furnishing the above documents to the Assessing Officer. Therefore, to meet the ends of justice, we deem fit it to set aside the case to the file of the Assessing Officer and give one more opportunity to the assessee to explain its case with these additional evidences as last opportunity by imposing a cost of Rs. 10,000/”

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