2021 (5) TMI 344

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....aimed by the assessee. 3. The appeal of the assessee is barred by limitation by 363 days. The assessee has filed a petition before the bench praying for condonation of delay. In the petition, it is stated that the assessee is having accumulated loss of Rs. 13.75 crores and losses incurred during the year under consideration was Rs. 7.99 crores. Further, it was in its initial years of operation. Hence, effectively, there was no tax liability on account of disallowance of business promotion expenses. Hence, the assessee did not file appeal against the order passed by Ld. CIT(A). However, subsequently, the assessee was advised that it would be liable for penal action u/s 271(1)(c) of the Income-tax Act,1961 ['the Act' for short] despi....

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....uld not stand to gain by not filing appeal wantonly. Accordingly, he submitted that there was reasonable cause for the assessee in not filing appeal in time. Accordingly, he prayed that the delay may kindly be condoned. 4. On the contrary, the Ld. D.R. strongly opposed the petition filed by the assessee. He submitted that the assessee has not given any valid reason to show that the delay was on account of reasonable cause. 5. We heard the parties on this preliminary issue and perused the record. Having regard to the submissions made by the assessee in the petition and considering the facts prevailing in the present case, we are of the view that there is sufficient cause for the assessee in not filing appeal before the Tribunal in time. ....

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....e received notice u/s 142(1) of the Act through E-Mail only on 19.12.2016. The assessee furnished the reply through E-Mail on 21.12.2016 and also another reply was sent on 28.12.2016. In between the assessee appeared personally before the A.O. on 26.12.2016 also. The assessee has furnished the details of breakup of business promotion expenses in its reply dated 21.12.2016. The assessee has also furnished sample invoices of business promotion expenses in its reply mailed on 28.12.2016. However, it is not clear as to whether the A.O. has examined all these details before coming to the conclusion of disallowance of expenses. The Ld. A.R. further submitted that the fact remained that these expenses have been incurred for the purpose of busine....