ANKURAN,KORAPUT V. ITO, BERHAMPUR, BERHAMPUR

ITA 487/CTK/2024

AI Insights

The case involves Ankuram, the appellant, who appealed against the order of the CIT(A), National Faceless Appeal Centre, Delhi, for the assessment year 2018-2019. The primary contention was the dismissal of their appeal by the CIT(A) due to an alleged one-day delay, which the appellant argued was not applicable as they received the assessment order later than the date cited by the CIT(A). Additionally, the AO had denied the appellant the benefits under Section 11 & 12 of the Income Tax Act due to a delay in filing the audit report, which was contested based on a precedent set by the Gujarat High Court. The ITAT found merit in the appellant's arguments and restored the matter to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 472126 (ITAT-CUTTACK)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-01-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB
• Assessment Year: 2018-2019
• Other Referred Cases: Anjana Foundation [2024] 168 taxmann.com 462 (Gujarat)
• Laws Referred To: Section 11 & 12 of the Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: S.C.MOHANTY
• Assessee Lawyers: S.K.SARANGI
• Keywords: Opportunity of being heard
• Section: 11; 12

Judgement Text

" आयकर आयकर आयकर आयकर अपीलीय अपीलीय अपीलीय अपीलीय अिधकरण अिधकरण अिधकरण अिधकरण, कटक कटक कटक कटक \u0001यायपीठ \u0001यायपीठ \u0001यायपीठ \u0001यायपीठ,कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.487/CTK/2024 (िनधा\u0005रण िनधा\u0005रण िनधा\u0005रण िनधा\u0005रण वष\u0005 वष\u0005 वष\u0005 वष\u0005 / Assessment Year : 2018-2019) ANKURAN C/o Maa Gruha Project Bandhugaon, Dist : Koraput-764027 Vs ITO, Exemption Ward, Berhampur PAN No. : AAATA 8149 A (अपीलाथ\u000f अपीलाथ\u000f अपीलाथ\u000f अपीलाथ\u000f /Appellant) .. (\u0010\u0011यथ\u000f \u0010\u0011यथ\u000f \u0010\u0011यथ\u000f \u0010\u0011यथ\u000f / Respondent) िनधा\u0005\u0013रती िनधा\u0005\u0013रती िनधा\u0005\u0013रती िनधा\u0005\u0013रती क\u0016 क\u0016 क\u0016 क\u0016 ओर ओर ओर ओर से से से से /Assessee by : Shri S.K.Sarangi, CA राज\u0018व राज\u0018व राज\u0018व राज\u0018व क\u0016 क\u0016 क\u0016 क\u0016 ओर ओर ओर ओर से से से से /Revenue by : Shri S.C.Mohanty, Sr. DR सुनवाई क\u0002 तारीख / Date of Hearing : 27/01/2025 घोषणा क\u0002 तारीख/Date of Pronouncement : 27/01/2025 आदेश आदेश आदेश आदेश / O R D E R Per Bench : The present appeal is filed by the assessee against the order of ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, passed in Appeal No.NFAC/2017-18/10246290, vide DIN & Order No.ITBA/NFAC/S/250/2024-25/1069079646(1), for the assessment year 2018-2019. 2. It was submitted by the ld. AR that in the course of assessment, the assesee had not been able to produce the evidences as called for by the AO. It was the submission that the assessment order is dated 28.03.2023. The assesee had filed his appeal before the ld. CIT(A) on 27.04.2023. It was the submission that as per the ld. CIT(A), there was one day delay in filing the appeal. It was the submission that the assessment order was received by the assesee only on 29.03.2023 and consequently it should be deemed that the appeal of the assesee is within the time. However, the ld. CIT(A) has dismissed the appeal of the assesee in limine alleging one ITA No.487/CTK/2024 2 day’s delay. It was further submitted that as per the notice of hearing issued by the ld. CIT(A) on 14.09.2024, copy of which is placed in the paper book at page 1, the date for response was 30.09.2024 but the ld. CIT(A) had already been dismissed the appeal of the assesee on 25.09.2024. It was the further submission that in the course of assessment, the AO had denied the assesee the benefit of Section 11 & 12 of the Act on the ground that there was a delay in filing of the audit report. It was the submission that in view of the decision of the Hon’ble Gujarat High Court in the case of Anjana Foundation, reported in [2024] 168 taxmann.com 462 (Gujarat), dated 09.10.2024, the filing of audit report in Form No.10B is only a procedural requirement and just because there is a minor delay in filing of the audit report, the assesee should not been denied the benefit u/s.11 & 12 of the Act. It was the prayer that the assessment, being ex-parte, issues may be restored to the file of the AO for readjudication and also to consider the decision of the Hon’ble Gujarat High Court in the case of Anjana Foundation (supra). 3. In reply, ld. Sr. DR did not raise any serious objection. 4. We have considered the rival submissions. A perusal of the assessment order clearly shows that the same is an ex-parte order. A perusal of the order of the ld. CIT(A) shows that the appeal was dismissed in limine on an alleged delay of one day. A perusal of the assessment order shows that the assessment order has been passed on 28.03.2023 then obviously the assesee should have been given at least one day’s time to accept the service, even though it is on the online mode. If the ITA No.487/CTK/2024 3 date of service being the date of which the assesee has been informed of the order of the assessing authority is taken as 29.03.2023 then the appeal filed by the assesee on 27.04.2023 would be within time. This being so, the finding of the ld. CIT(A) that the appeal of the assesee is delayed by one day is reversed. Considering the fact that the assessment order is ex-parte order and the assesee had not had an opportunity to produce the documents before the AO, in the interest of justice, the issues in the appeal are restored to the file of the ld. AO for readjudication after granting the assesee adequate opportunity of being heard to substantiate its case. The AO shall also consider the decision of the Hon’ble Gujarat High Court in the case of Anjana Foundation, referred to supra, at the time of readjudication of the issues. 5. In the result, appeal of the assesee is partly allowed for statistical purposes. Order pronounced in the open court on 27/01/2025. Sd/- (MANISH AGARWAL) Sd/- (GEORGE MATHAN) लेखा सद\u0003य/ ACCOUNTANT MEMBER \u0001याियक \u0001याियक \u0001याियक \u0001याियक सद\bय सद\bय सद\bय सद\bय / JUDICIAL MEMBER कटक कटक कटक कटक Cuttack; \u0003दनांक Dated 27/01/2025 Prakash Kumar Mishra, Sr.P.S. आदेश आदेश आदेश आदेश क\u0002 क\u0002 क\u0002 क\u0002 \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप \u0003ितिलिप अ\tेिषत अ\tेिषत अ\tेिषत अ\tेिषत/Copy of the Order forwarded to : आदेशानुसार आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER, (Assistant Registrar) आयकर अपीलीय अिधकरण, कटक/ITAT, Cuttack 1. अपीलाथ\u0007 / The Appellant- ANKURAN C/o Maa Gruha Project Bandhugaon, Dist : Koraput-764027 2. \b\tयथ\u0007 / The Respondent- ITO, Exemption Ward, Berhampur 3. आयकर आयु\u0006(अपील) / The CIT(A), 4. आयकर आयु\r / CIT 5. िवभागीय \u0010ितिनिध, आयकर अपीलीय अिधकरण, कटक कटक कटक कटक / DR, ITAT, Cuttack 6. गाड\u0010 फाईल / Guard file. स\tयािपत \bित //True Copy// "