2019 (5) TMI 792 - AT - Income Tax

Condonation of delay - reasonable cause for late filing of these appeals - HELD THAT - It is duly supported with the affidavit of Shri Gurmeet Sodhi, Director of the company, wherein it has been deposed that there was not any intentional default on the part of the assessee company, rather the impugned order of the CIT(A) was never served upon the assessee and that the project of the assessee company had been since abandoned, there was no regular employee of the assessee company. The assessee company has a reasonable cause for late filing of these appeals. In our view, the delay in filing these appeals, in the interest of justice, is required to be condoned. Assessment u/s 153A - HELD THAT - Assessee has filed a separate affidavit of Shri Gurmeet Sodhi, Director of the assessee company, wherein identical pleadings have been made and it has been deposed that due to the aforesaid reasons explained, the assessee company could not appear and present its case during assessment proceedings carried out by the A.O. u/s 153(3) r.w.s. 144/143(3). Interest of justice will be served if the assessee is given an opportunity to properly present its case and give due explanation to the A.O. and the matter be decided on merits by the A.O. In view of this, ex-parte orders of the lower authorities are hereby set aside and the matter in this appeal is remanded back to the A.O. for an assessment afresh. Since the facts and circumstances in other appeals are identical and even identical pleadings have been made for condonation of delay, hence, the findings given above will apply to all the appeals and accordingly, the matter in all the appeals is remanded to the file of the A.O. for assessment afresh. All the appeals filed by the assessee are, therefore, treated as allowed for statistical purposes.

Summary

Issues:
Appeal against orders of Ld. Commissioner of Income Tax (Appeals) -2 for different assessment years under Income Tax Act, 1961. Delay of 559 days in filing appeals. Plea for condonation of delay due to non-receipt of orders and project abandonment. Merits of the case regarding ex-parte orders by lower authorities.

Analysis:
The appeals were filed by related assessees/sister concerns against separate orders of the Ld. Commissioner of Income Tax (Appeals) -2 for different assessment years under the Income Tax Act, 1961. The assessees contested the addition made by the Assessing Officer (A.O.) in assessments framed u/s 153A r.w.s. 144/143(3) of the Act. All appeals were time-barred by 559 days, with separate applications for condonation of delay. The delay was attributed to non-receipt of orders allegedly sent by the CIT(A) and project abandonment leading to retrenchment of employees. The delay was deemed unintentional due to unavoidable circumstances beyond the assessee's control.

The application for condonation of delay was supported by an affidavit stating that the impugned orders were never served upon the assessee due to project abandonment and lack of regular employees. The Ld. DR argued negligence on the part of the assessee for the significant delay. The Tribunal, after considering submissions and the affidavit, found a reasonable cause for the delay and ordered its condonation in the interest of justice.

Regarding the merits of the case, the assessee's affidavit highlighted the inability to participate in assessment proceedings due to the same reasons for the delay. The Tribunal concluded that justice demanded the assessee be given an opportunity to present its case properly. Therefore, the ex-parte orders of the lower authorities were set aside, and the matter was remanded back to the A.O. for a fresh assessment.

Since the facts and pleas in all appeals were identical, the Tribunal's decision on condonation of delay and remanding the matter back to the A.O. applied uniformly to all appeals. Consequently, all appeals filed by the assessee were treated as allowed for statistical purposes.