The Income Tax Appellate Tribunal ( ITAT ), Bangalore while hearing an Income Tax Appeal, endorsed the medical reasons cited by the Appellant while praying for the condonation of delay to file the appeal, after due payment of the requisite fees to file the appeal.
The Assessee, Narayanappa Gondaraju filed their returns of income for the Assessment Year (A.Y.) 2013-14 under Section 139(1) of the Income Tax Act, 1961 declaring a gross total income of Rs.8,83,217. Subsequently, in 2018 a search was conducted in Bangalore by the Department with regards to another Assessee by the name of T.Suresh which revealed additional details regarding the Assessee’s case.
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Upon service of Notice under Section 153C of the Income Tax Act, 1961, the Assessee filed their returns of income on 10.03.2022, declaring a total income of Rs.7,73,220 on the basis of which the AO assessed the Appellant’s income at Rs.6,41,08,220 and passed order on 27.03.2022.
Aggrieved, the Appellant preferred an appeal before the Commissioner of Income Taxes (Appeals) ( CIT(A) ) seeking condonation of delay of 85 days, which was outrightly refuted by the CIT(A), citing that the Assessee had been unable to provide sufficient reasoning warranting such condonation.
CA Ravindra Hegde, appearing for the Appellant submitted that the Assessee is 64 years of age and was unable to file the appeal in time due to ill health, while filing on record medical prescriptions issued by Manipal Hospital.
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The Appellant Counsel’s arguments were met with opposition by the Departmental Representative D.K. Mishra who argued that the assessment under Section 153C of the Act had been completed pursuant to search under Section 132 of the Act, providing the assessee ample time and opportunity to file the appeal within the statutory time limit.
Referring to the decision of a coordinate bench of the same tribunal in M/S. J C R Drillsol Pvt. Lts vs The Income Tax Officer (2024), the two-judge Bench of George George K., Vice President And Laxmi Prasad Sahu, Accountant Membernoted that the Assessee had amply explained the reasons for delay in their statement of facts, along with medical prescriptions and even paid the requisite appeal fee within 30 days of the Assessment Order.
Observing that such conduct was deemed to showcase the Assessee’s intention to file the appeal within time, the ITAT proceeded to condone the delay in filing appeal before the First Appellate Authority and remitted the issue to the CIT(A) for fresh consideration on merits, warranting a decision as per applicable law.
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