TaxTMI 
TaxTMI 
2026 (9) TMI 995
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....section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"]. Since both the appeals relate to the same assessee, arise from the same assessment proceedings and involve a common preliminary issue concerning rejection of the applications for condonation of delay, they were heard together and are being disposed of by this common order. 2. Briefly stated, the assessment was completed under section 144 of the Act on 30.09.2019, determining the total income at Rs. 1,16,91,000/- by treating the cash deposits in the assessee's bank account as unexplained money under section 69A of the Act and applying section 115BBE. Consequent thereto, the Assessing Officer, by order dated 18.09.2021, imposed penalty of Rs. 9,03,130/- under s....
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....d in law. ITA No. 5378/Mum/2026: Penalty proceedings 1. In the Facts and Circumstances of the case and in law the learned CIT (A) erred in dismissing the appeal of the appellant without issuing any notice of hearing and without giving any opportunity of hearing whatsoever. 2. The learned CIT (A) erred in not dealing on merits the ground of the Appellant that in the facts of the Appellant's case the impugned penalty levied u/s 271AAC1 WAS NOT JUSTIFIED 5. During the course of hearing before us, the learned Authorised Representative (AR) submitted that both the appeals were dismissed by the learned CIT(A) solely on the ground of delay and that none of the substantive grounds was adjudicated. It was contended that n....
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.... 9. There can be no dispute that the law of limitation serves an important purpose and that an assessee seeking condonation must demonstrate sufficient cause. Equally, the expression "sufficient cause" is required to be applied in a manner that advances substantial justice, subject to the absence of mala fides, deliberate delay or gross and unexplained indifference. The length of delay is material, but it cannot, by itself, become determinative without a proper examination of the explanation and the surrounding circumstances. 10. The learned CIT(A) has placed considerable emphasis upon the validity of electronic service of the respective orders under Rule 127 of the Income-tax Rules, 1962. Valid service of an order is relevant for det....
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....upon professional advice could constitute sufficient cause, provided the explanation was bona fide and was not a device to conceal negligence, recklessness or an ulterior purpose. The decision does not lay down that every allegation of professional lapse must necessarily result in condonation. It nevertheless requires the appellate authority to examine such an explanation on evidence and upon the applicable tests of bona fides, intentional delay, negligence and overall substantial justice. 14. In the present case, the learned CIT(A) concluded that the explanation was unsupported by evidence. However, the impugned orders do not disclose the particulars of any effective hearing afforded to the assessee specifically to substantiate the expl....
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....t order, the magnitude of the addition, the ex parte nature of the assessment and the absence of any adjudication on the source and character of the deposits constitute relevant surrounding circumstances while exercising judicial discretion. They do not dispense with the requirement of sufficient cause, but they reinforce the need for a careful, evidence based and justice-oriented consideration of the explanation. 17. The penalty appeal is integrally connected with the quantum appeal. The penalty order under section 271AAC(1) proceeds entirely upon the addition of Rs. 1,16,91,000/- under section 69A and even treats the non-filing of an appeal against the assessment order as indicating acceptance of the addition. The quantum and penalty a....
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....ty orders and the distinct periods of delay. The learned CIT(A) shall specifically consider whether the delay was deliberate or mala fide, whether there was gross or incomprehensible indifference on the part of the assessee, whether the explanation concerning professional default is supported by evidence, and whether the assessee acted with reasonable promptitude after acquiring actual knowledge of the default. 21. If the learned CIT(A), upon such reconsideration, condones the delay in the quantum appeal, all substantive grounds relating to the assessment under section 144, the addition under section 69A and the application of section 115BBE shall be adjudicated on merits by a reasoned and speaking order after permitting the assessee to ....