2022 (7) TMI 1561 - AT - Income Tax

Dismissal of appeal as barred by limitation - delay of 789 days on the part of the assessee in filing this appeal before the Tribunal - Dismissal of appeal by CIT(A) as barred by limitation - unexplained cash deposits in bank account - HELD THAT - As already noted, there was non-compliance on the part of the assessee to the notices issued by the Assessing Officer during the course of assessment proceedings as well as to the notices issued by the learned CIT(A) during the course of appellate proceedings resulting into passing of exparte orders by them. Moreover, there was a delay on the part of the assessee in filing his appeal before the learned CIT(A) and as specifically noted by CIT(A) in his impugned order, no request whatsoever was made by the assessee for condonation of the said delay. Even before the Tribunal the assessee has not made any efforts to explain the delay on his part in filing the appeal before the CIT(A) which has resulted in dismissal of the said appeal by the CIT(A) by treating the same as barred by limitation. no efforts whatsoever have been made by the assessee to explain the cash deposits of Rs.24,79,430/- found to be made in his bank account with ICICI Bank Limited, Mumbai either before the authorities below or even before the Tribunal inspite of proper and sufficient opportunity given to him. It is not doubt true that the appellate authorities are vested with discretion to condone the delay in filing the appeal taking into consideration the reasons advanced by the appellant for such delay if the same constitute a sufficient cause. In the present case, the assessee has not only failed to establish such sufficient cause on evidence for the delay on his part in filing the appeal belatedly before the learned CIT(A) as well as before the Tribunal, but even his approach and attitude during the course of assessment proceedings as well as during the course of appellate proceedings before the learned CIT(A) as well as Tribunal have been found to be negligent, casual and non-compliant - Decided against assessee.

Summary

Issues:
1. Delay in filing appeal before the Tribunal.
2. Non-compliance with notices during assessment and appellate proceedings.
3. Dismissal of appeal by CIT(A) as barred by limitation.
4. Failure to explain cash deposits in bank account.

Analysis:
1. The judgment deals with an appeal filed by an individual engaged in transportation business against the order of the Commissioner of Income-tax (Appeals) dismissing the appeal as barred by limitation due to a delay in filing. The Assessing Officer had reopened the assessment due to unfiled returns and made an addition on account of unexplained cash deposits in the bank account. The assessee failed to respond to notices and the assessment was completed ex-parte. The delay in filing the appeal before the CIT(A) was not condoned, leading to its dismissal.

2. The assessee further appealed to the Tribunal with a significant delay of 789 days. Despite seeking adjournments during the Tribunal hearings, the assessee failed to provide reasons for the delay. The Tribunal noted the non-compliance with notices during assessment and appellate proceedings, as well as the lack of effort in explaining the delay. The judgment highlights the negligent and non-compliant attitude of the assessee throughout the proceedings.

3. The Tribunal emphasized that appellate authorities have discretion to condone delays if sufficient cause is established. However, in this case, the assessee failed to provide any valid reasons for the delay in filing the appeal. The judgment reflects the importance of diligence and compliance with procedural requirements in tax proceedings to ensure timely and effective resolution of disputes.

4. Additionally, the judgment points out the failure of the assessee to explain the cash deposits in the bank account, both before the lower authorities and the Tribunal. Despite multiple opportunities, the assessee did not offer any explanation for the deposits, further contributing to the dismissal of the appeal. The judgment underscores the significance of providing necessary explanations and evidence to support financial transactions during tax assessments and appeals.

In conclusion, the Tribunal refused to condone the delay in filing the appeal and dismissed the appeal of the assessee as barred by limitation due to the prolonged delay, lack of compliance with procedural requirements, and failure to explain the cash deposits in the bank account.