TaxTMI 
TaxTMI 
TaxTMI 
2023 (2) TMI 337
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "NFAC"), arising out of the Re-assessment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2011- 12. 2. The assessee's main grievance is that the Ld. CIT(A)-NFAC dismissed the appeal of the assessee who failed to condone the delay of 13 days in filing the above appeal and thereby merits of the case were not adjudicated. 2.1. The assessee's prayer for condoning the delay in filing the appeal before Ld. CIT(A)-NFAC is as follows: Sub: Prayer for condoning the delay in filing of appeal for A.Y.2011-12. In connection with the above, Your Honours' above named appellant most respectfully begs to submit as under: 1.0 The appellant, a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....,870/-. 5.0 During assessment proceeding, it was explained before the AO that originally the investment in Policy of Bajaj Alliance was purchased by one customer Shri Jitendra Vagh through husband of the appellant. However due to personal reason of the customer, his cheque was dishonored. Therefore, in order to keep the policy a live and save the reputation of the sales manager appellant got assigned the policy in her name and managed to pay the premium of Rs. 99,900/- out of her own funds. AO misinterpreted the facts and sum assured of Rs.9,99,000/- was treated as payment without proper verification, though necessary clarification was given at the time of assessment proceedings. 6.0 The AO, in total disregards to the fact of case and....
X X X X Extracts X X X X
X X X X Extracts X X X X
....T(A). Therefore the appeal is being filed beyond the prescribed time. The delay in filing the appeals was not intentional but because of the circumstances as stated above. 10.0 In view of the above, the appellant humbly prays before the Hon'ble Commissioner of Income-tax (Appeals) that the delay in filing the appeals may kindly be condoned and the same may please be admitted and decided on merits by exercising of Your Honour's powers vide provisions of section 249(3) of Ac. In this connection, the appellant begs to invite your honour's kind attention to the decision to the decision of Hon'ble Supreme Court in the case of Collector, Land Acquisition Vs. Kathiji (MST) (1987) 167 ITR 471. 2.2. In support of this condonatio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and may kindly be deleted. 4. We have heard rival parties and perused the materials available on record including the condonation petition, supporting affidavit filed by the assessee's husband explaining thereby the delay of 13 days in filing the above appeal, the assessee has shown sufficient cause in not filing the same within the time limit. Thus we are satisfied with the reasons adduced by the assessee and thereby condone the delay of 13 days in filing the appeal before Ld. CIT(A) on the Principles of Natural Justice. 4.1. On merits, the assessment was reopened on the basis of information received from DDIT, Investigation Unit-2, Rajkot that the assessee has paid an amount of Rs. 9,99,000/- to Shri Jinabhai Vagh on 10.03.2011 for Lif....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 31/08/2010 First Premium 750000 99900 99900 99900 0 Total 99900 99900 99900 0 4.2. Thus it is evident on record, the Life Insurance Premium is not Rs. 9,99,000/- but it is Rs. 99,900/- only. As per Section 149(1)(b) of the Act, which prescribes the income escaped amount is Rupees one lakh or more is to be reopened for reassessment. Thus, we find that the initiation of reassessment proceedings itself is against the provisions of 149(1)(b) of the Act and invalid in law. Therefore the same is liable to be quashed. Thus the grounds raised by the Assessee is hereby allowed. 5. In the result, the appeal filed by the Assessee is allowed. ITA No. 09/Rjt/2022 7. This appeal is filed ....