2012 (4) TMI 724 - AT - Income Tax

Summary

Issues involved: Appeal against order of Learned CIT(Appeals) dismissed as time-barred, delay in filing appeal, condonation of delay, exemption claimed under sec. 54 of the Income-tax Act, 1961.

Issue 1: Appeal dismissed as time-barred

The assessee appealed against the order of Learned CIT(Appeals) dated 24.11.2011, which was dismissed on the ground of being time-barred. The assessee had filed the appeal with five grounds, seeking condonation of the delay in filing the appeal before the Learned First Appellate Authority.

Issue 2: Exemption claimed under sec. 54 of the Act

The case involved the assessee, a 70-year-old individual, who had sold a flat and claimed exemption under sec. 54 of the Income-tax Act, 1961. The Assessing Officer observed discrepancies in the claimed exemption amount and made an addition to the taxable income.

Issue 3: Condonation of delay

The delay in filing the appeal before the Learned CIT(Appeals) was a crucial aspect of the case. The appeal was instituted four months after the assessment order was passed, and an application for condonation of delay was submitted along with the appeal. The application cited reasons such as the assessee's health issues and absence from India for medical reasons.

Issue 4: Opportunity for re-adjudication

After considering the contentions of both parties, the Appellate Tribunal found that the delay in filing the appeal may have been due to genuine reasons and not a deliberate attempt to circumvent the process. Therefore, the Tribunal allowed the appeal, set aside the order of the Learned CIT(Appeals), and remitted all issues back to the Learned First Appellate Authority for re-adjudication. The assessee was granted another opportunity to explain the delay and present the case before the authority.

In conclusion, the Appellate Tribunal allowed the appeal of the assessee, emphasizing the importance of providing a fair opportunity for the assessee to present their case and address the delay in filing the appeal. The decision was pronounced in open court on 27.04.2012.