TaxTMI 
TaxTMI 
2026 (6) TMI 126
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....der passed by the AO under section 143(3) read with section 254 of the Income Tax Act, 1961 (for short, "Act") for the Assessment Year 2011-12. The assessee firm has assailed the order of the CIT(A) on the following grounds of appeal before us: "1. On the facts and in the circumstances of the case, the order of the ld. CIT(A) is erroneous and unsustainable in law apart from being passed in violation of principles of natural justice. The ld. CIT(A) failed to appreciate that proper notices were not served on the appellant as required under section 282 of the Act r.w. rule 127 of the Rules, and therefore Appellant could not put forth his case. 2. Without prejudice to the above, the ld. CIT(A) erred in sustaining the addition ....
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.... books of account and supporting evidence. The AO also issued notices under section 133(6) to various parties, most of which were returned unserved or remained uncomplied. 6. The AO, backed by the aforesaid facts, rejected the books of account under section 145(3) of the Act on the basis, viz. (i). that salary expenses were not supported by proper evidence and the original records were not produced; (ii). key employees could not be produced; (iii). statutory compliances such as TDS and ESI were not demonstrated; and (iv). statements recorded indicated discrepancies in employment details. In respect of sundry creditors aggregating to Rs. 80,23,007/-, confirmations filed by the assessee firm lacked PAN, complete addresses, and identity det....
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....s of the lower authorities and the material available on record. 11. We find that the present appeal filed by the assessee firm involves a delay of 152 days. Elaborating on the reasons leading to the delay in filing the appeal, the Ld. AR submitted that the same had crept in because the notices intimating the fixation of hearing of the appeal on 14/01/2021, 04/11/2024, and 10/01/2025 were dropped in the e-mail address of the assessee firm, which was, though, provided in the "Form 35" but was no longer in use. The Ld. AR submitted that it was only when the Chartered Accountant of the assessee firm had logged into the income tax portal account of the assessee firm for learning about the update on appeal proceedings that it was gathered tha....
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....ndonation of the delay involved in filing the appeal. We thus, in terms of our aforesaid observations, condone the delay of 152 days involved in the filing of the present appeal. 14. We find that the assessee firm has raised a plea of violation of principles of natural justice on the ground of improper service of notices under section 282 of the Act r.w Rule 127. However, the record indicates that, although notices were issued through the ITBA system and multiple opportunities were afforded to the assessee firm, including during the remand proceedings, it failed to participate effectively or furnish complete details. Also, the assessee firm had failed to place on record material to demonstrate any prejudice caused due to alleged improper....