2022 (10) TMI 32 - AT - Income Tax

Condonation of delay in filling the appeal with the CIT(A) - assessee was pursuing suo motto rectification proceedings by the Assessing officer in respect of chargeability of Tax u/sec115BBE - HELD THAT - Delay in filing the appeal before the CIT(A) is not an wanton Act but due to the alternative remedy pursued. We found that the assessing officer has issued notice U/sec 154 of the Act dated 11.10.2018 and the assessee has filed reply on 22.10.2018 and finally the A.O. has passed rectification order U/sec154 of the Act dated 18-06-2019 and whereas, the assessee has filed an appeal with the CIT(A) on 27.07.2019. Further as per Form no 35, the assessee has mentioned date of the service of order on 10-12-2017 in respect of order U/sec143(3) of the Act passed on 4-12-2017. The assessee was perusing the su-motto rectification proceedings u/sec154 of the Act with the Asseessing officer. We find the A.O. has issued notice U/sec 154 of the Act on 11-10-2018. Therefore we find that the assessee was perusing the proceedings before A.O. hence the time period from 11-10-2018 to the date of filling of the appeal by the asseesse against the Order U/sec143(3) of the Act with the CIT(A) on 20-07-2019 can be considered as reasonable cause and we condoned the delay. Assessee has received the order U/sec 143(3) of the Act on 10-12-2017 and therefore we are of the opinion that the assessee should explain the reasonable cause for delay for the period till date of notice issued by the A.O in suo-motto rectification proceedings i.e.11-10-2018. We considering the facts, circumstances and the delay as discussed above restore the disputed issue to the file of the CIT(A) to consider the application explaining the reasonable cause on the delay for the period 10-12-2017 to 11-10-2018 and adjudicate afresh on merits considering the material evidences filed in course of hearing, further, the assessee should be provided adequate opportunity of hearing and cooperate in submitting the information but early disposal of appeal and allow the grounds of appeal of the assessee for statistical purpose.

Summary

Issues:
1. Condonation of delay in filing appeal under Section 249(2) of the Income Tax Act.
2. Disputed issues related to donation, salary income, and rental income leading to assessment under Section 143(3) of the Act.
3. Appeal against the order under Section 143(3) and 154 of the Act.
4. Condonation of delay in filing the appeal before the CIT(A).
5. Restoration of appeals to the file of CIT(A) for further consideration.

Analysis:

1. The first issue pertains to the condonation of delay in filing the appeal under Section 249(2) of the Income Tax Act. The appellant argued that the delay was due to pursuing rectification proceedings by the Assessing Officer. The Tribunal found that the delay was not intentional but a result of pursuing an alternative remedy. Considering the timeline of events and the appellant's actions, the Tribunal condoned the delay and restored the disputed issue to the file of the CIT(A) for fresh consideration.

2. The second issue involves disputed issues related to donation, salary income, and rental income leading to the assessment under Section 143(3) of the Act. The Assessing Officer disallowed the deduction claimed under Section 80G for donation and treated the entire income as unexplained under Section 69A. The CIT(A) dismissed the appeal due to a delay in filing. The Tribunal, after considering the facts and circumstances, restored the matter to the CIT(A) for reevaluation, allowing the appellant an opportunity to present material evidence and explanations.

3. The third issue concerns the appeal against the order under Section 143(3) and 154 of the Act. The Tribunal decided to restore the appeal to the CIT(A) for a joint consideration with another appeal filed by the appellant, allowing the grounds of appeal for statistical purposes.

4. The fourth issue addresses the condonation of delay in filing the appeal before the CIT(A). The Tribunal found that the delay was justifiable due to the appellant's pursuit of rectification proceedings with the Assessing Officer. The Tribunal, considering the timeline and actions taken by the appellant, condoned the delay and directed the CIT(A) to reconsider the matter with fresh evidence and explanations from the appellant.

5. The final issue involves the restoration of appeals to the file of CIT(A) for further consideration. Both appeals filed by the appellant were allowed for statistical purposes, and the matters were remanded to the CIT(A) for reevaluation and consideration along with specific directions provided by the Tribunal.

In conclusion, the Tribunal's judgment addressed various issues related to the appellant's appeals, condonation of delay, disputed tax matters, and restoration of appeals for fresh consideration, ensuring procedural fairness and providing the appellant with opportunities to present their case effectively.