2024 (1) TMI 862 - AT - Income Tax

Delay in filling appeal before the CIT(A) - delay in filing the appeal of 2929 days - assessee has stated that the reasons that the intimation was not served to the assessee but the assessee came to know about the intimation when the action of demand for recovery came to the knowledge of the assessee - A.R. submitted that the delay is due to the reasonable cause of bonafide belief about mistake which is rectifiable u/s. 154 and without any malafide intention to defraud Revenue - HELD THAT - It is pertinent to note that though the delay is that of 2929 days but whether the intimation was rightly served to the assessee was not denied by the Revenue. In fact, the assessee has taken a measure of filing rectification application u/s. 154 and the same was also not entertained. AO has also suggested to file appeal and therefore the assessee after exhausting all the remedies has filed the appeal before the CIT(A). Thus, the delay in filing the appeal was not deliberate. These aspects have not been taken into account by the CIT(A). In fact, the assessee has filed the detailed affidavit explaining the delay before the CIT(A). This was also totally ignored. Therefore, we are condoning the delay in respect of the appeal filed before the CIT(A), the remaining matter to the file of CIT(A) for proper adjudication of the issues contested by the assessee in the appeal filed before the CIT(A). Needless to say, the assessee be given opportunity of hearing by following principles of natural justice. Appeal of the assessee is partly allowed for statistical purposes.

Summary

Issues involved: Appeal against order by National Faceless Appeal Centre (NFAC) for assessment year 2014-15, regarding computation of business income.

Summary:

Issue 1: Computation of Business Income
- The appeal was filed against the order passed by NFAC, Delhi, confirming the computation of business income at Rs. 36,95,639/-, as opposed to the returned income of Rs. 4,24,218/-.
- The assessee had initially declared a total income of Rs. 4,90,980/- for the assessment year 2014-15. However, the CPC processed the return and determined the total income at Rs. 37,62,400/-, raising a demand of Rs. 11,54,740/-.
- The CPC added a sum of Rs. 29,94,456/- to the total income as contract income under other revenue.
- The appeal filed by the assessee before the CIT(A) was dismissed, citing a delay of 2929 days in filing the appeal. The assessee claimed that the delay was due to not receiving the intimation and rectification requests not being processed by the CPC.
- The delay was condoned by the ITAT, considering the efforts made by the assessee to rectify the situation and the reasonable cause for the delay. The matter was remanded back to the CIT(A) for proper adjudication, ensuring the principles of natural justice are followed.

Decision:
- The appeal of the assessee was partly allowed for statistical purposes, with the delay in filing the appeal being condoned and the matter remanded back to the CIT(A) for proper adjudication.

This summary encompasses the key issues and details of the judgment, focusing on the computation of business income and the delay in filing the appeal.