The Cochin Bench of Income Tax Appellate Tribunal(ITAT) remanded the matter for a fresh hearing due to the Commissioner of Income Tax(Appeals)[CIT(A)]’s failure to consider the assessee’s explanation for a 30-day delay in filing the appeal.
Kalanad Service Co-op. Bank Ltd,appellant-assessee,filed its income return for AY 2014-15 on 03.03.2016, declaring a Nil income after claiming a deduction of Rs. 28,39,995/- under section 80P of the Act. The AO completed the assessment on 27.12.2016, assessing the total income at Rs. 28,39,995/- after denying the claimed deduction.
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The assessee appealed before the CIT(A) who dismissed the appeal based on the Supreme Court’s judgment in Collector Land Acquisition v. Mst. Katij & Ors 167 ITR 471. The assessee aggrieved on CIT(A)’s decision appealed before the tribunal.
A single member bench comprising Inturi Rama Rao(Accountant Member) found a delay of 230 days in filing the appeal. The assessee explained that the CIT(A) order went to their email’s spam folder. Since there was no reason to disbelieve this, the delay was condoned and admitted the appeal for adjudication.
The CIT(A) dismissed the appeal without condoning the 30-day delay. The assessee explained that the delay was due to the need for board approval and the advocate being unavailable. The CIT(A) dismissed the appeal without addressing the explanation.
The appellate tribunal decided to remand the case to the CIT(A) for a fresh hearing, allowing the assessee an opportunity to be heard.
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In short, the appeal filed by the assessee was allowed for statistical purposes.
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