The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) has condoned delays caused by negligence of tax practitioners in serving notices.
The assessee, Sanjeev Harshadrai Sheth filed return of Income for A.Y. 2016-17 was filed on 13.07.2016 declaring total income and was selected for limited scrutiny for the reason that whether the investment and income relating to securities transactions were duly disclosed.
Notice under Section 143(2) of the Income Tax Act along with questionnaire was issued to the assessee. However, the Assessee did not respond to any of the notices, therefore, the Assessing officer passed an assessment order under Section 144 of the Income Tax Act making addition towards unexplained deposit to bank account.
Sakar Sharma, on behalf of the assessee submitted that at the time of recovery proceedings only the assessee came to know about the assessment order dated 11.12.2018. He also submitted that no notice was received by the assessee at any point of time the income tax practitioner who had given his email id had not given the notice to the assessee and without any knowledge of the income tax notices the assessee was genuinely not represented his case before the Assessing Officer.
The Commissioner of Income Tax Appeals (CIT(A)) was not right in dismissing the appeal on the ground of delay. Sanjeev Bhagat, relied upon the assessment order.
A similar decision has been held in Shri Dinesh Babu Saxena vs Income Tax Officer
that the CIT shall condone delay for want of material records regarding non service of notice and penalty order on time.
The two-member Bench of Suchitra Kamble, (Judicial Member) allowed the appeal filed by the assessee holding that the CIT(A) had not taken cognizance of the genuine reason of the assessee for not filing the appeal within the time limit. The reason given by the assessee was justifiable and appeared to be genuine.
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