DAYALU IRON AND STEEL PRIVATE LIMITED ,. V. ITO WARD- 1(2), FBD, .

ITA 3648/DEL/2024

AI Insights

The case involves Dayalu Iron And Steel Private Limited, which appealed against the order of the National Faceless Appeal Centre (NFAC)/Ld. CIT(A) Delhi, concerning the Assessment Year 2016-17. The appeal was initially dismissed by the Ld. CIT(A) due to a delay in filing, attributed to the health issues of the company's director. The Tribunal found the explanation for the delay reasonable and admitted the appeal for hearing, leading to the decision to set aside the previous order and remand the case for a fresh decision on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 31700 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAJESH KUMAR DHANESTA
• Assessee Lawyers: DISHANT SETHI
• Keywords: Opportunity of being heard; Corroborative evidences
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, ‘B’: NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No.3648/DEL/2024 [Assessment Year: 2016-17] Dayalu Iron And Steel Private Limited, H-35, 1st Floor, Jangpura Extension, New Delhi-110014 Vs ITO, Ward-1(2), C.R. Building, Faridabad, Haryana-122001 PAN-AAECD4434C Assessee Revenue Assessee by Shri Dishant Sethi, Adv. Revenue by Shri Rajesh Kumar Dhanesta, Sr.(DR) Date of Hearing 17.12.2024 Date of Pronouncement 22.01.2025 ORDER PER BRAJESH KUMAR SINGH, AM, This appeal filed by the assessee is directed against the order dated 18.07.2024 of National Faceless Appeal Centre (NFAC)/Ld. CIT(A) Delhi, relating to Assessment Year 2016-17 arising out of assessment order dated 15.12.2018 passed u/s 143(3) of the Act by the ITO, Ward-1(2), Faridabad. 2. Grounds of appeal raised by the assessee are as under:- 1. That the Ld. CIT (A), NFAC and Ld. AO has grossly erred in law as well as on facts in sustaining/making the addition of Rs.73,00,000/- u/s 68 of the IT Act, 1961 on account of alleged unexplained share 2 ITA No.3648/Del/2024 2 premium and share capital despite furnishing all the documentary evidence for establishing identity, creditworthiness of the investors and the genuineness of the transaction. 2. That the Ld. CIT (A), NFAC has grossly erred in law as well as on facts in not calling for the remand report against the additional evidences filed under Rule 46A of the Income Tax Rules, 1962. 3. That the Ld. CIT(A), NFAC has erred in law as well as facts in in dismissing the appeal of assessee for statistical purpose and not providing the reasonable and sufficient opportunity of being heard while disposing the appeal of assessee.” 3. At the outset, the ld. AR submitted that there was a delay of 40 days in filing of the appeal by the assessee before the Ld. CIT(A). It was submitted that the Ld. CIT(A) did not condone the above delay and dismissed the appeal with the comment that ‘the appeal is dismissed for statistical purpose and not required to be adjudicated on merits’. The Ld. CIT(A) in para no.2 to 4 of his order observed as under:- “2. In Form 35, the appellant has admitted that there is delay in filing of appeal and raised the following grounds for Condonation of delay in filing of appeal: “With all due respect, it is humbly submitted that due to the health issues of the director, the appeal was left to be filed within due date. Therefore, we request your honour to kindly condone the delay.” 3. It is clear from the above that the order u/s 143(3) was made on 15.12.2018 which got served upon the appellant on 15.12.2018 but the appeal was filed on 25.02.2019 i.e. beyond prescribed time of 30 days, whereas, the appellant was required to file appeal within 30 days as provided vide section 249(2) on receipt of order u/s 143(3). The appellant has stated reason for late filing due to the medical condition of the director but no supporting evidences like medical certificate has been filed with form no. 35 at the time of filing of appeal. Hence, in absence of the same, the reason stated can't be relied upon and therefore, as provided in the section 249(3) of the IT Act. Accordingly, I am not satisfied that the appellate had sufficient cause for not presenting the appeal within the specified period. Hence, since, appeal was not filed within prescribed time as provided in the section 249(2) of the IT Act, the same is not admitted. 3 ITA No.3648/Del/2024 3 4. In view of the above facts, the appeal is dismissed for statistical purpose and not required to be adjudicated on merits.” 4. During the hearing before us, it was submitted that Shri Shyam Kumar, Director of the company, who was looking into the day to day affairs of the assessee company was not keeping good health and therefore, the appeal could not be filed in time. In this regard, the assessee has filed an affidavit dated 14.12.2024 alongwith application submitting as under and requested to condone the delay:- 4 ITA No.3648/Del/2024 4 5. On the other hand, the ld. DR opposed the request for above condonation. 6. We have considered the submission made by the assessee for the condonation of the delay in filing of the appeal. The explanation is reasonable and bona fide and the delay is also very nominal. We, therefore, condone the delay and admit this appeal for hearing. 7. As apparent from the order of the ld. CIT(A), the same was dismissed due to delay and not adjudicated on merits. Since, we have condoned the delay, we, therefore, set-aside the order of the Ld. CIT(A) and restore the matter to the file of the Ld. CIT(A) for fresh adjudication after giving reasonable opportunity of being heard to the assessee as per law. 8. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 22nd January, 2025 Sd/- Sd/- [CHALLA NAGENDRA PRASAD] [BRAJESH KUMAR SINGH] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated 22.01.2025. f{x~{tÜ f{x~{tÜ f{x~{tÜ f{x~{tÜ Copy forwarded to: 1. Assessee 2. Respondent 3. PCIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi "