TaxTMI 
TaxTMI 
2025 (5) TMI 2305
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....donation of delay in respect of the appeals for A.Y. 2016-17, namely ITA No. 1254/Ahd/2024 (quantum appeal) and ITA No. 1255/Ahd/2024 (penalty appeal). As per the noting of the Registry, there is a delay of 150 days in filing ITA No. 1254/Ahd/2024 and a delay of 54 days in filing ITA No. 1255/Ahd/2024. In support of the condonation petitions, the assessee has filed duly sworn and notarized affidavits affirming that the delay occurred due to his reliance on one Shri Dinesh Patel, an accountant who had been entrusted with the responsibility of preparing and filing the appeals before the Tribunal. The assessee, being a tenth standard pass individual from a modest background, was unaware of the legal timelines and was misled into believing that the appeals had been duly filed within the prescribed period. He came to know about the lapse only after receiving recovery notices from the Income Tax Department, which prompted him to inquire into the matter and engage a new representative to file the appeals without any further delay. The affidavits also clarify that the delay was neither intentional nor due to negligence but arose from circumstances beyond the assessee's control, and that he....
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.... appeal, the assessee had filed an application for condonation of delay explaining that the delay occurred as the matter was initially entrusted to a tax practitioner who failed to file the appeals in time, and the default came to light only upon receipt of demand notices, following which a Chartered Accountant was appointed. The learned CIT(A) condoned the delay in all three cases but proceeded to confirm the respective additions and penalty on merits owing to the complete absence of representation and supporting material. The assessee's principal contention across both quantum years was that he was engaged in Angadia business, where cash belonged to third parties and his role was limited to handling such transfers against nominal commission. However, in the absence of any evidence or explanation placed on record, these contentions were not examined by the appellate authority. The distinct factual details of the appellate orders are tabulated below: Particulars A.Y. 2015-16 A.Y. 2016-17 (Quantum) A.Y. 2016-17 (Penalty) CIT(A) Order Date 13.05.2024 14.11.2023 22.02.2024 Section under which AO passed the order 147 r.w.s. 144 147 r.w.s. 144 271....
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....st individual, having studied only up to the 10th standard, and is entirely unfamiliar with legal and procedural requirements under the Income-tax Act. It was submitted that the assessee did not file any return of income for the relevant assessment years, as he was under the bona fide belief that his earnings did not exceed the taxable threshold. The AR further submitted that the additions made by the Assessing Officer under section 68 of the Act were based on information relating to certain cash deposits in a bank account opened in the assessee's name with Sri Renuka Mata Multi-State Co-operative Credit Society Ltd. The AR drew attention to the sworn affidavits filed by the assessee, wherein it is affirmed that the said bank account was opened at the behest of the society's branch manager, who offered to operate the account through third parties in exchange for nominal financial assistance by way of commission. The assessee had signed blank cheques and other documents as instructed, without understanding the nature of the transactions subsequently carried out in the account. The AR contended that the assessee had no ownership or control over the deposited funds and acted under....
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....ffidavits have been placed on record explaining the reasons for the delay in filing the Tribunal appeals, which we have already condoned by separate order. It is also submitted that the assessee was not furnished with the copies of the statement or material relied upon by the Assessing Officer while making the additions, despite repeated efforts to obtain the same. The learned AR therefore urged that the matter be remanded to the file of the Assessing Officer to enable the assessee to submit his explanation and supporting material, and to ensure fair opportunity of hearing in accordance with principles of natural justice. 12. We find merit in the contentions of the assessee. The fact that the assessments were framed ex-parte, and that the CIT(A) also disposed of the appeals in a summary manner without any discussion on merits, clearly points to a denial of proper opportunity. While the assessee failed to discharge his obligations during the earlier proceedings, the explanation now furnished in the form of sworn affidavits, coupled with his limited educational background and lack of legal knowledge, warrants one final opportunity to present his case. 13. We also note that the ....