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TMI Blog2021 (9) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... ses so debited, and he further notes that the assessee expressed his inability to produce any further documentary evidences. Faced with these facts the AO proceeds to make an adhoc disallowance of 12% of the expenses. It is abundantly clear therefore that it cannot be said to be a case of no inquiry. Further no case has been made out by the Ld.CIT of inadequacy of inquiry conducted by the AO on the issue. Appeal of the assessee is allowed. - ITA No. 317/CHD/2020 (Assessment Year: 2015-16) - - - Dated:- 27-8-2021 - SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND SMT. ANNAPURNA GUPTA, ACCOUNTANT MEMBER Assessee by: None Revenue by: Smt. C. Chandrakanta, CIT ORDER Per S. S. Godara, J.M. : The present appeal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ck and eventually expired on 30.06.2020. On returning from Delhi, on 02.07.2020, the assessee was ordered to be in quarantine by the DC office for 14 days. Thereafter, on 28.07.2020, he again went to Delhi and returned back on 31.07.2020. He was again in quarantine for next 14 days. It is worth mentioning here that everybody passed through big mental turmoil during this period. Till the date of filing of this appeal, normalcy is not restored. However, assessee, being a law abiding citizen, on coming to know about this order through his counsel, asked him to file the appeal immediately, despite al type of agony and despondency being faced by him. Under such circumstances, though there appears to be apparent default/delay/ of 103 days, in fil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oning such delays if the delays are small, however, larger delays have always been seen with apprehension. One common factor coming out of the most of the judicial precedents are that the courts have always been in favour of the doctrine that substantive justice should not be denied to a subject on account of such latches. Another important factor considered by courts in most of the cases is the resultant prejudice caused to the other party. In case no prejudice is caused to the other party, the courts lean in favour of the party praying for condonation. Under the Income Tax proceedings, where such delays occur on the part of the assessee, the courts are liberal since the other party is always the state, hence no personal prejudice is cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hem as being not completely verifiable. The AO states that the assessee was unable to produce the bills /vouchers for the expenses so debited, and he further notes that the assessee expressed his inability to produce any further documentary evidences. Faced with these facts the AO proceeds to make an adhoc disallowance of 12% of the expenses. It is abundantly clear therefore that it cannot be said to be a case of no inquiry. Further no case has been made out by the Ld.CIT of inadequacy of inquiry conducted by the AO on the issue. 8. We refer to the decision of the apex court in the case of Malabar Industrial Co. Ltd. vs CIT 243 ITR 83 (SC) holding that an assessment must be both an erroneous one as well as causing prejudice to the intere ..... X X X X Extracts X X X X X X X X Extracts X X X X
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