The Ahmedabad bench of the Income Tax Appellate Tribunal (ITAT) has condoned a delay in filing an appeal and remanded the matter back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh adjudication, ensuring a fair hearing for the appellant.
The assessee had appealed against the order passed by the CIT(A) for the assessment year 2018-19.
The assessee had filed his income tax return declaring an income of Rs. 4,96,320. During the assessment, it was found that Joshi had not disclosed remuneration amounting to Rs. 10,35,600 received from M/s. Pink Elephant Disruption LLP. The assessing officer (AO) made an addition of this amount to assessee’s income and imposed a penalty of Rs. 5,35,844 under Section 270A of the Income Tax Act, 1961, due to misreporting of income.
The CIT(A) dismissed the appeal on the grounds that it was filed beyond the limitation period, despite Joshi’s request for condonation of delay. The CIT(A) did not adjudicate the case on its merits, and thus the assessee appealed before the ITAT for relief.
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The assessee’s counsel argued that the CIT(A) had passed an ex-parte order without considering the genuine reasons for the delay in filing the appeal. It was submitted that the assessee was unaware of the penalty order and only came to know about it while waiting for a tax refund.
The revenue’s counsel opposed the condonation of delay, stating that Joshi had not provided cogent reasons for the 552-day delay in filing the appeal before the CIT(A).
The bench noted that the CIT(A) had not adequately considered the reasons for the delay, nor had it confirmed whether hearing notices were served to the assessee.
The ITAT, comprising Suchitra Kamble (Judicial Member), remanded the matter back to the CIT(A) for fresh adjudication and directed that the assessee should be given an opportunity of hearing by following principles of natural justice.
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