2022 (11) TMI 533 - AT - Income Tax

Condonation of delay - delay of 638 days in filing the present appeal - Addition u/s 68 and 14A - HELD THAT - Explanation submitted in the petition for condonation of delay of 638 days in filing the present appeal does not in any way persuade us to grant the condonation. Accordingly, filing of this appeal is barred by limitation. Even otherwise, having gone through the orders of Ld. CIT(A) and the Ld. AO with the assistance of Ld. CIT, DR, the above stated facts on the conduct of assessee before the authorities below in various proceedings under the Act, reflects that assessee is abusing the process of law time and again. CIT(A) has meritoriously dealt with the issues raised by the assessee in respect of the addition made u/s. 68 towards share capital and share premium and the disallowance made u/s. 14A of the Act based on material available on record. Accordingly, we do not find any reason to interfere with the findings given by the Ld. CIT(A) and thus, grounds taken by the assessee are dismissed.

Issues:
1. Delay of 638 days in filing the appeal.
2. Condonation of delay petition reasons and analysis.
3. Conduct of the assessee in various proceedings.
4. Assessment order based on best judgment.
5. Appeal before the Tribunal against the order of Ld. CIT(A).
6. Lack of representation by the assessee in the proceedings.
7. Dismissal of the appeal by the Tribunal.

Delay of 638 days in filing the appeal:
The appeal filed by the assessee was delayed by 638 days, and a petition for condonation of delay was submitted. The reasons cited in the petition included issues related to old age, part-time accountant, and circumstances due to demonetization. However, the explanations provided were deemed general and vague by the Tribunal. The lack of a detailed affidavit along with the petition further weakened the case for condonation of delay.

Condonation of delay petition reasons and analysis:
The reasons mentioned in the petition for condonation of delay, such as old age, part-time accountant issues, and demonetization circumstances, were considered by the Tribunal. However, the explanations were deemed general and lacking in specificity. The Tribunal noted that the petition did not provide sufficient grounds to warrant the condonation of the significant delay in filing the appeal.

Conduct of the assessee in various proceedings:
The Tribunal reviewed the conduct of the assessee in various proceedings under the Income-tax Act. It was observed that the assessee had shown a casual approach and non-appearance at multiple stages before the authorities. Instances of seeking adjournments and non-compliance with notices were highlighted, indicating a pattern of disregard for procedural requirements.

Assessment order based on best judgment:
The assessment order was passed by the Assessing Officer under section 144 read with section 263 of the Income-tax Act. Due to the lack of compliance by the assessee in responding to statutory notices, the assessment was conducted on a best judgment basis. The Tribunal noted the circumstances leading to the assessment order and the subsequent appeal filed by the assessee.

Appeal before the Tribunal against the order of Ld. CIT(A):
The assessee appealed before the Tribunal against the order of the Commissioner of Income Tax (Appeals). However, during the Tribunal proceedings, there was no representation from the assessee. The Tribunal highlighted the lack of seriousness on the part of the assessee in pursuing the appeal and noted the absence of any effort to present their case effectively.

Lack of representation by the assessee in the proceedings:
During the proceedings before the Tribunal, the assessee was not represented, despite notice being duly served. The Tribunal emphasized the importance of active participation and serious engagement in legal matters. The lack of representation was viewed as a significant factor in the dismissal of the appeal.

Dismissal of the appeal by the Tribunal:
After considering the conduct of the assessee, the reasons for the delay in filing the appeal, and the lack of representation, the Tribunal dismissed the appeal. The Tribunal found no merit in the grounds raised by the assessee and upheld the findings of the Commissioner of Income Tax (Appeals) regarding the additions made under sections 68 and 14A of the Income-tax Act.

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