2022 (4) TMI 1416 - AT - Income Tax

Grounds mentioned in the impugned order as different from the grounds attached to Form no.35 - addition made u/s 68 and disallowance u/s 14A have not been decided by Ld. CIT(A) - HELD THAT - In the grounds reproduced by the ld. CIT(A) in the impugned order, no grounds in merits u/s 68 and u/s 14A of the Act are appearing whereas in the grounds attached in Form 35 placed on record, we find that the assessee has raised nine grounds including the grounds raised on merits for addition of Rs.2,04,80,000/- u/s 68 u/s 14A - CIT(A) has not adjudicated any of the issues on merits. The ld. Departmental Representative failed to controvert this fact that the grounds raised on merits by the assessee remained adjudicated by the ld. CIT(A). We, therefore under the given facts and circumstances of the case, in the larger interest of justice and being fair to both the parties, are of the considered view that all the issues raised before us, in the instant appeal needs to be restored to the file of the ld. CIT(A) for adjudicating the issues and pass a speaking order on grounds raised before us, including the issue of addition u/s 68 of the Act and disallowance u/s 14A - Appeal of the assessee is allowed for statistical purposes.

Summary

Issues:
1. Condonation of delay in filing the appeal.
2. Restoration of issues for adjudication before the ld. CIT(A).

Condonation of Delay:
The appeal was time-barred by 1535 days, but the Tribunal considered the reasons for delay provided in the condonation application. The reasons included the health issues of a director, lack of proper advice from a legal consultant, and the impact of the Covid-19 lockdown. The Tribunal, taking into account the reasons and the extension of the limitation period by the Supreme Court, condoned the delay and admitted the appeal for adjudication.

Restoration of Issues for Adjudication:
The appeal pertained to the assessment year 2012-13 and concerned the addition made under section 68 of the Act and disallowance under section 14A of the Act. The Tribunal noted that the issues raised on merit had not been decided by the ld. CIT(A) and deserved to be restored for adjudication. Although the ld. Departmental Representatives claimed that the appeal was dismissed because the assessee withdrew all grounds, the Tribunal found discrepancies between the grounds mentioned in the impugned order and those attached to Form no.35. The ld. CIT(A) had not adjudicated on the merits raised by the assessee, leading the Tribunal to decide in favor of restoring all issues to the file of the ld. CIT(A) for proper adjudication. The Tribunal emphasized providing the assessee with a fair opportunity to be heard and present relevant material in support of the grounds raised.

In conclusion, the Tribunal allowed the appeal for statistical purposes, directing the restoration of all issues raised before them to be adjudicated by the ld. CIT(A) in a fair and just manner, ensuring the assessee's right to present their case effectively.