Sh. Gian Chand, Shimla V. ITO, Ward -1, Shimla

ITA 95/CHANDI/2023

AI Insights

This case involves an appeal by Shri Gian Chand against the order of the Ld. CIT(A), NFAC, Delhi, which pertained to the Assessment Year 2018-19. The primary contention was the ex-parte adjudication by the CIT(A) and the treatment of gross agricultural receipts as income from undisclosed sources, leading to an addition of Rs. 64,81,770 to the taxable income of the assessee. The assessee argued that the delay in filing the appeal was due to the misplacement of documents by his CA, which was beyond his control. The Tribunal found merit in the assessee's arguments, condoned the delay, and remanded the case back to the CIT(A) for a fresh decision.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127698 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-07-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 16-07-2023
• Assessment Year: 2018-2019
• Appeal Filed On: 20-02-2023
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Reasonable cause; Set aside
• Section: 144

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “ए” , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH ी संजय गग , या यक सद य एवं ी !व"म $संह यादव, लेखा सद य BEFORE: SHRI. SANJAY GARG, JM & SHRI. VIKRAM SINGH YADAV, AM ITA NO. 95/Chd/ 2023 Assessment Year : 2018-19 Shri Gian Chand O/o K.D. Mohan, 4, Argyle House, The Mall Road, Shimla The ITO Ward-1, Shimla, H.P PAN NO: ARJPC6757C Appellant Respondent ! " Assessee by : Shri Vishal Mohan, Sr. Advocate with Shri Aditya Sood, Advocate # ! " Revenue by : Smt. Amanpreet Kaur, Sr. DR $ % ! & Date of Hearing : 17/07/2023 '()* ! & Date of Pronouncement : 21/07/2023 आदेश/Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A), NFAC, Delhi dt. 17/10/2022 pertaining to Assessment Year 2018-19 wherein the assessee has raised the following grounds of appeal: “1. That in the facts and circumstances of the case the Ld. Commissioner of Income Tax (Appeals) is not justified in adjudicating the appeal ex-parte without giving an opportunity of being heard to the assessee appellant. 2. That the Ld. Commissioner of Income Tax (Appeal) is not justified in upholding the order of the Ld. Assessing Officer and upholding the treating of the gross agricultural receipt as income of the assessee from undisclosed sources and thereby upholding an addition of Rs. 64,81,770/- made to the taxable income of the assessee appellant. 3. That the order of the Ld. Commissioner of Income Tax (Appeals) is bad in law and facts.” 3. At the outset, the ld AR submitted that there is a delay in filing the present appeal and in this regard, our reference was drawn to the condonation application as well as affidavit of the assessee which has been placed on record. It was submitted that the assessee has engaged a C.A to file his appeal before the Tribunal and has also paid the appeal fee within the stipulated period, however, the C.A failed to file the appeal due to misplacement of assessee’s file and which was only traced on 2 15/02/2023 and thereafter steps were taken to file the present appeal. It was submitted that an affidavit of the CA is also placed on record wherein he has stated that the file of the assessee was misplaced in his office and therefore the delay has happened in filing the present appeal. It was accordingly submitted that the delay in filing the appeal was neither willful nor intentional but has occasioned due to the reasons beyond the control of the assessee. It was submitted that no prejudice would be caused to the Revenue where the delay in filing the present appeal is condoned. It was accordingly submitted that the delay so happened may be condoned and the appeal of the assessee be admitted for adjudication. 4. It was further submitted that the Ld. CIT(A) has passed an ex-parte qua the assessee on account of non-prosecution. It was submitted that the assessee is an agriculturist and has shown certain agricultural income which has been brought to tax as income from other sources by the AO. It was submitted by the ld AR on behalf of the assessee that the latter shall duly co-operate and participate in the proceedings and hereby undertakes to submit the necessary documentation in support of the agriculture income and it was accordingly requested that in the interest of substantial justice, the assessee may be allowed one more opportunity to represent his case and matter may be set aside. 5. The Ld. DR is heard who has opposed the condonation application. It was further submitted that the assessee has not participated in the assessment proceedings and the assessment order has been passed u/s 144 of the Act and thereafter, before the ld CIT(A), the assessee has been granted more than sufficient opportunity by the Ld. CIT(A) and therefore no useful purpose would be served in setting aside the matter. 6. After hearing both the parties and considering the material available on the record including the affidavit filed by the assessee as well as that of the C.A., we find that the assessee is diligent enough to entrust the job of filing the appeal to a CA. and has also paid the appeal fee within the stipulated time period, however, there has been a delay in filing the present appeal but the reasons for delay cannot be attributed to the assessee and the assessee cannot be penalized for certain inactions on part of the CA. We therefore find that there was reasonable cause for the delay in 3 filing the present appeal which is hereby condoned and appeal of the assessee is admitted for adjudication. 7. Further, we find that the matter has been decided ex-parte qua the assessee without deciding on the merits of the case holding that the assessee is not interested in prosecuting the same. Taking into considerations the background of the assessee and the undertaking given by the ld AR on behalf of the assessee, we believe that assessee deserves one more opportunity to represent his case and file necessary information / documentation as so advised in order to substantiate the agricultural income so disclosed in his return of income. Therefore, in interest of fair play and substantial justice, we set aside the matter to the file of the Ld. CIT(A), NFAC, Delhi to decide the same afresh as per law after providing reasonable opportunity to the assessee. 8. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 21/07/2023 Sd/- Sd/- संजय गग !व"म $संह यादव (SANJAY GARG) ( VIKRAM SINGH YADAV) या यक सद य / JUDICIAL MEMBER लेखा सद य/ ACCOUNTANT MEMBER AG Date: 21/07/2023 ( + ! , - . - Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. $ / CIT 4. - 0 ग 2 3 & 2 3 456 ग7 DR, ITAT, CHANDIGARH 5. ग 6 8 % Guard File ( + $ By order, 9 # Assistant Registrar