9911796707
|
Home
Issues: Delay in filing appeal before CIT(A) for condonation, Reopening of assessment based on excessive claim of brought forward losses, Financial difficulties faced by the assessee affecting the appeal process.
Analysis: 1. Delay in filing appeal before CIT(A) for condonation: The assessee filed the return of income for the assessment year claiming a loss after setting off brought forward losses. The AO reopened the assessment due to an excessive claim of brought forward losses. The delay in filing the appeal before the CIT(A) for about two years was attributed to the assessee's financial difficulties and shifting of residence. The CIT(A) dismissed the appeal on the grounds of lack of reasonable cause for the delay. However, the Tribunal found that the delay was due to valid reasons and remanded the matter back to the CIT(A) with a direction to condone the delay and decide on the merits. 2. Reopening of assessment based on excessive claim of brought forward losses: The AO reopened the assessment after noticing that the claim of brought forward losses allowed earlier was excessive. The assessee had no objection to setting off the correct amount of brought forward losses. Subsequently, the AO disallowed the claim for certain years, leading the assessee to approach the first appellate authority. The CIT(A) dismissed the appeal on the grounds of delay but proceeded to decide on the merits. The Tribunal set aside the CIT(A)'s order, emphasizing that the delay should have been condoned before deciding on the merits. 3. Financial difficulties faced by the assessee affecting the appeal process: The assessee's representative highlighted the financial crunch faced by the assessee, including difficulties in the cashew export business and loan repayment issues. The Tribunal acknowledged the financial difficulties faced by the assessee as a valid reason for the delay in filing the appeal. The Tribunal directed the CIT(A) to consider these financial challenges while deciding on the condonation of delay and the merits of the case. In conclusion, the Tribunal allowed the appeal for statistical purposes only, remanding the matter back to the CIT(A) to condone the delay and decide on the merits considering the valid reasons for the delay presented by the assessee.
|
