Vinod Bansal, Gurgaon V. ACIT Circle-35(1), New Delhi

ITA 1751/DEL/2020

AI Insights

This case involves an appeal by Shri Vinod Bansal against the order of the Commissioner of Income Tax (Appeals)-17, New Delhi, which upheld the assessment made by the ACIT Circle-35(1), Delhi, for the Assessment Year 2013-14. The primary contention was the substantial increase in assessed income from the returned income, along with issues regarding the non-consideration of a revised return and the requirement of an audit under the Income-tax Act. The appeal was initially dismissed by the CIT (Appeals) for non-prosecution, and the order was cryptic without proper reasoning. The assessee, having been in custody and unaware of the proceedings due to the pandemic, filed the appeal with a significant delay, which the ITAT found to be justified under the circumstances.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113152 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 4 month(s) 2 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Next Hearing Date: 04-01-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 21-10-2020
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SAURABH NANDI
• Keywords: Reasonable cause; Condonation of delay

Judgement Text

I.T.A. No. 1751/Del/2020 1 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “H” NEW DELHI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER AND Dr. B.R.R. KUMAR, ACCOUNTANT MEMBER आ.अ.सं/.I.T.A No. 1751/Del/2020 िनधाᭅरणवषᭅ/Assessment Year : 2013-14 Shri Vinod Bansal, 23, Siris Road, DLF Phase-3, Sector : 24, Gurgaon, Haryana – 122 010. बनाम Vs. ACIT, Circle : 35 (1), New Delhi. PAN No. ADFPB5662F अपीलाथᱮ/ Appellant ᮧ᭜यथᱮ/ Respondent िनधाᭅᳯरतीकᳱओरसे / Assessee by : Shri Sahil Sharma, Adv.; & Shri Saurabh Nandi, Adv.; राजˢकीओरसे / Department by Shri Sumit Kumar Verma, Sr. D. R.; सुनवाईकᳱतारीख/ Date of hearing : 05.01.2023 उ᳃ोषणाकᳱतारीख/Pronouncement on : 24.02.2023 आदेश / O R D E R PER C. N. PRASAD, J.M. 1. This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-17 [hereinafter I.T.A. No. 1751/Del/2020 2 referred to CIT (Appeals)], New Delhi, dated 10.10.2019. for the Assessment Year 2013-14. 2. The assessee has raised the following substantive grounds of appeal:- “1. That on the facts and circumstances of the case and in law, the order dated 29.03.2016 passed u/s.143(3) of the Income Tax Act, 1961 ("Act") by the ACIT Circle-35(1), Delhi ("AO") assessing the total income at Rs.1,44,48,930/- as against the returned income of Rs.15,53,140/-, thereby raising a demand of Rs.53,82,0l0/-, upheld vide order dated 10.10.2019 of the Commissioner of Income Tax (Appeals)-17, New Delhi ["Ld. CIT(A)"] is bad in law. 2. That on the facts and circumstances of the case, the appellant was not in a position to attend the proceedings before the Ld. CIT(A) resulting in disposal of the appeal as not pursued. 3. The Ld. CIT(A) erred in not considering the revised return and upholding the addition of Rs.1,28,95,785/- made by the AO. 4. The authorities below erred in holding that the appellant was required to get his accounts audited under Income-tax Act.” 3. This appeal is filed by the assessee with delay of 306 days and the delay was explained by way of petition for condonation of delay supported with the affidavit by the assessee. The reason for delay is stated to be that the assessee was taken into custody and sent to Central Jail, Tihar from 10.02.2019 till 15.05.2020 and the ex-parte order of the ld. CIT (Appeals) was up-loaded on the IT portal on 22.10.2019. It was further stated that the assessee was released from prison during the tenure when the entire country was in I.T.A. No. 1751/Del/2020 3 lock-down due to Covid 19 and the appellant was not aware of the order of the ld. CIT (Appeals). It is stated that assessee came to know about the order of the ld. CIT (Appeals) only in the month of September, 2020 when he consulted the Chartered Accountant and on becoming aware of the order of the ld. CIT (Appeals) the assessee took necessary steps to file appeal and ultimately he could file the appeal on 24.10.2020 before the Tribunal. Therefore, the ld. Counsel for the assessee submits that assessee was prevented with reasonable cause in filing the appeal before the Tribunal and there is no willful default by the assessee in filing the appeal. 4. On hearing both the sides, we observe that there is reasonable cause in not filing the appeal in time as the assessee was earlier in prison for almost a year and he was released during the mid of the pandemic Covid-19 i.e. May, 2020 and there is no willful default in delay in filing the appeal before the Tribunal. The delay in filing the appeal before the Tribunal is condoned. 5. Coming to merits of the case we observe that the ld. CIT (Appeals) dismissed the appeal of the assessee for non-prosecution and on merits he simply sustained the order of the Assessing Officer without any proper reasoning and the order is very cryptic. Therefore, taking the totality of facts and circumstances into consideration, we are of the considered view that this appeal should go back to the ld. CIT (Appeals) for fresh adjudication after hearing the assessee. Thus, we restore this appeal to the file of the ld. CIT (Appeals) who shall adjudicate the appeal on merits after providing adequate opportunity to the assessee. The assessee I.T.A. No. 1751/Del/2020 4 is directed to co-operate with the proceedings without taking un-necessary adjournments. Grounds raised by the assessee are allowed for statistical purposes. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on : 24/02/2023 Sd/- Sd/- ( B.R.R. KUMAR ) ( C. N. PRASAD ) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated : 24/02/2023 *MEHTA* Copy forwarded to : 1. Appellant; 2. Respondent; 3. CIT 4. CIT (Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, New Delhi. Date of dictation 20.02.2023 Date on which the typed draft is placed before the dictating member 22.02.2023 I.T.A. No. 1751/Del/2020 5 Date on which the typed draft is placed before the other member 24.02.2023 Date on which the approved draft comes to the Sr. PS/ PS 24.02.2023 Date on which the fair order is placed before the dictating member for pronouncement 24.02.2023 Date on which the fair order comes back to the Sr. PS/ PS 24.02.2023 Date on which the final order is uploaded on the website of ITAT 24.02.2023 Date on which the file goes to the Bench Clerk 24.02.2023 Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the order