RAJVANSH HOTEL,GADARWARA V. INCOME TAX OFFICER WARD, NARSINGHPUR

ITA 145/JAB/2025

AI Insights

The case involves Rajvansh Hotel, which appealed against the order of the Commissioner of Income Tax (Appeals) that dismissed their appeal on the grounds of limitation without deciding on the merits. The original dispute arose from the Income Tax Department's reclassification of part of the assessee's income from 'profit and gains from business or profession' to 'income from other sources', leading to an additional assessment and demand for tax. The Tribunal found that there was sufficient cause for the delay in filing the appeal and that the assessee was not given a reasonable opportunity to be heard, thus meriting a re-examination of the case on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772453 (ITAT-JABALPUR)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ALOK BHURA
• Assessee Lawyers: DHIRAJ GHAI
• Keywords: Set aside; Opportunity of being heard

Judgement Text

"I.T.A. No.145/JAB/2025 Assessment Year:2017-18 1 IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH “SMC”, JABALPUR BEFORE SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.145/JAB/2025 Assessment year:2017-18 Rajvansh Hotel 123, Hotel Rajvansh, Station Road, Rajendra Babu Ward, Gadarwara. PAN:AAQFR4608D Vs. Income Tax Officer, Ward-Narsinghpur (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.145/JBP/2025 has been filed by the assessee for assessment year 2017-18 against impugned appellate order dated 28/03/2025 (DIN & Order No.ITBA/APL/S/250/2024- 25/1075186614(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) The facts of the case, in brief, are that the assessee is engaged in hospitality business and filed its return of income for the year under consideration declaring rental income under the head “profit and gains from Appellant by Shri Dhiraj Ghai, C.A. Respondent by Shri Alok Bhura, Sr.D.R. Printed from counselvise.com I.T.A. No.145/JAB/2025 Assessment Year:2017-18 2 business or profession” amounting to Rs.1,88,637/-. The CPC processed the return filed by the assessee and in the intimation issued u/s 143(1) of the Act, reclassified part of the income as “income from other sources” and made an additional assessment of Rs.4,05,433/- and created a demand of Rs.6,03,348/-. Being aggrieved, the assessee filed appeal in the office of learned CIT(A). Vide impugned appellate order dated 28/03/2025, the assessee’s appeal was dismissed by the learned CIT(A) on the ground of limitation and did not decide the assessee’s appeal on merits. (C) At the time of hearing before us, learned A.R. for the assessee submitted that there was sufficient cause behind filing the appeal belatedly before the learned CIT(A). He also submitted that the appeal of the assessee has been dismissed without providing reasonable opportunity of being heard. He drew our attention to records and pleaded that the appellant had sufficient cause, within the meaning of section 249(3) of the Act, for not filing appeal in the office of learned CIT(A) within time frame mentioned in section 249(2) of the Act. He further submitted that there was no mala-fide intention behind filing the appeal belatedly. Moreover, he contended that in view of these submissions, the delay in filing of appeal in the office of the learned CIT(A) deserved to be condoned. The learned Departmental Representative expressed no objection to the submissions made by learned A.R. for the assessee that the assessee had sufficient cause for not filing appeal in the office of the learned CIT(A). In view of the foregoing, we are satisfied within the meaning of section 249(3), that the assessee had sufficient cause for not presenting the appeal in the office of the learned CIT(A) within prescribed time limit. Accordingly, it is held that this was a fit case for the learned CIT(A) to condone the delay in filing of the appeal in his office and to admit the appeal for decision on merits. Printed from counselvise.com I.T.A. No.145/JAB/2025 Assessment Year:2017-18 3 (D) In view of the foregoing, we set aside the impugned appellate order. The learned CIT(A) is directed to condone the delay in filing of appeal in the office of learned CIT(A); and to admit the appeal. The learned CIT(A) is further directed to pass de novo order, which should be a speaking order on merits, on various grounds of appeal in the assessee’s appeal filed in the office of the learned CIT(A). (E) In the result, the appeal of the assessee is partly allowed for statistical purposes. (Order pronounced in the open court on 28/08/2025) Sd/. (ANADEE NATH MISSHRA) Accountant Member Dated:28/08/2025 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Jabalpur Printed from counselvise.com "