Serious Illness Prevented Assessee from filing Timely Income Tax Appeal: ITAT Condones Delay in Bank Cash Deposit Dispute [Read Order]

The Patna Bench of the Income Tax Appellate Tribunal (ITAT) has condoned a 99 day delay in filing an appeal by a fuel retailer in a case involving unexplained cash deposits in the assessee’s bank account. The condonation was accepted as the assessee was having a serious illness, which was a valid cause for the delay and beyond the assessee’s control.

The assessee, Anitha Kumari Mehta, was engaged in the business of petrol and diesel sales under the name Hamara Petrol Pump. She had filed an appeal before the ITAT challenging the order of the National Faceless Appeal Centre (NFAC) for the Assessment Year (AY) 2017–18.

The Tribunal noted that the appeal filed by the assessee is barred by limitation by 99 days.

However, the assessee filed a condonation petition supported by an affidavit, stating that she was seriously unwell during the relevant period. Therefore was unable to file the appeal within the prescribed time limit.

The Departmental Representative (DR) argued that the explanation was insufficient. The tribunal held that the delay was due to reasons beyond the control of the assessee and found the cause genuine and bona fide.

The delay was accordingly condoned, and the appeal was admitted for adjudication.

During the hearing, the assessee’s counsel submitted that she was unable to attend appellate proceedings before the Commissioner of Income Tax (Appeals) ( CIT(A) ) due to her illness, despite being served with notice. The Tribunal further noted that during the assessment stage, the Assessing Officer had observed that the assessee failed to furnish primary books of account, such as cash book, stock registers, bills, vouchers, and confirmation of creditors.

The Tribunal, consisting of Rajesh Kumar (Accountant Member) and Pradip Kumar Choubey (Judicial Member), found that the assessee deserved another opportunity to substantiate her claim. The matter was therefore restored to the file of the Assessing Officer (AO) with directions to conduct fresh proceedings after affording the assessee a reasonable opportunity of being heard.

The assessee has also been directed to fully cooperate and submit all necessary documents and responses during the reassessment process.

In conclusion, the ITAT allowed the appeal for statistical purposes

The Assessee was represented by Alok Kumar, while Rinku Singh represented the Department

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