Appeal allowed for reevaluation, emphasizing fair opportunity for the assessee.

The appeal was allowed for statistical purposes, and the matter was remanded back to the CIT(Appeals) for reevaluation based on correct submissions. The Tribunal emphasized the importance of providing the assessee with a fair opportunity to present their case effectively.

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Issues: Delay in filing appeal, Disallowance of tax deduction, Misplacement of submissions

Delay in filing appeal:
The appeal involved a delay of 75 days, for which the assessee filed a condonation petition explaining the reasons. The Tribunal noted that the delay was not due to the direct conduct of the assessee and was not intentional. The Delay was condoned after considering the explanations provided, and the case was heard on merits.

Disallowance of tax deduction:
The assessee, engaged in the business of sugar and liquor manufacturing, had its income assessed with an addition of Rs. 8,00,60,988 under section 40(a)(ia) for non-deduction of tax on payments made under section 194C. The assessee contended that submissions made before the CIT(Appeals) were actually meant for another appeal related to an order under section 263. The CIT(Appeals) confirmed the disallowance citing irrelevant submissions. The Tribunal observed that the CIT(Appeals) should have given the assessee another chance to provide correct submissions, setting aside the order for fresh adjudication.

Misplacement of submissions:
The Ld. Counsel for the assessee argued that the submissions made before the CIT(Appeals) were misplaced and not relevant to the assessment order passed under section 143(3) of the Act. The Tribunal agreed that the submissions were incorrect but opined that the CIT(Appeals) should have allowed the assessee to rectify the error by providing another opportunity. Consequently, the order was remanded back to the CIT(Appeals) for fresh adjudication in compliance with the principles of natural justice.

In conclusion, the appeal was allowed for statistical purposes, and the matter was remanded back to the CIT(Appeals) for reevaluation based on correct submissions. The Tribunal emphasized the importance of providing the assessee with a fair opportunity to present their case effectively.

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