ITAT Condones Delay of 9 years in absence of Proper Intimation u/s 143(1) of the Income Tax Act [Read Order]

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The Amritsar Bench of the Income Tax Appellate Tribunal ( ITAT ) condoned the delay of 9 years in absence of proper intimation under section 143(1) of the Income Tax Act, 1961.

M.K. Hotels & Resorts Ltd. Distt. Shopping Complex, the assessee challenged the order of the Commissioner of Income Tax (Appeals), NFAC, Delhi,[‘CIT (A)’] order passed under section 250of the Income Tax Act 1961, [the Act] order dated 17.05.2021 for A.Y. 2010-11.The impugned order emanated from the order of the ADIT, CPC, Bangalore, (AO) order passed u/s 143(1) of the Act, date of order 15.03.2011.

The assesseehasfiled the return which was processed u/s 143(1) and deduction u/s 80IB was rejected which was claimed by the assessee regularly since A.Y. 2002-03. The total demand was raised to the amount of Rs.12,35,390/-.

Intimation was not servedby the department.So,the assessee was unable to act against the demand. Finally, the assessee filed an appeal before the CIT(A) with a delay of 9 years.The appeal of the assessee was dismissed on basis of the delay in filing the appeal.

The assessee claimed that the delay was caused by his failure to receive a notification. It may have been sent to the assessee’s email, which was dulymaintained by the accountant, and the accountant had not informed the assessee. Without proper opportunity, the deduction under Section 80IB wasrejected in the processing of the return under Section 143(1) of the act.

The two-member bench of Anikesh Banerjee (Judicial Member) and Dr M. L. Meena (Accountant Member) has observed that the assessee has sufficient cause for non-submission of the appeal within due time. The merit was also not considered in the appeal stage as it is decided in limine. The Tribunal remitted the issue to the CIT(A) and directed to pass the order on merits, denovo.

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