RITU BANGIA ,LUDHIANA V. INCOME TAX OFFICER WARD 7(1) , LUDHIANA

ITA 1212/CHANDI/2024

AI Insights

The case involves Ms. Ritu Bangia, the appellant, contesting an assessment order for the Assessment Year 2017-18, which was initially framed by the Assessing Officer on a best judgment basis under section 144 of the Income Tax Act. The assessment included additions under section 68, significantly increasing the assessed income from the returned income. The appellant's initial appeal was dismissed by the CIT(A) due to a delay of 786 days, which the appellant sought to condone citing ignorance of tax laws and reliance on a professional for tax assistance. The Tribunal found merit in the appellant's reasons for the delay, particularly noting the impact of the COVID-19 pandemic, and thus condoned the delay, allowing the appeal to be heard on its merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714244 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: KUSUM BANSAL LD
• Assessee Lawyers: SUDHIR SEH GAL LD
• Keywords: Condonation of delay; Set aside; Reasonable cause
• Section: 144; 68

Judgement Text

"1 IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI RAJPAL YADAV, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ ITA No.1212/CHANDI/2024 (िनधाŊरण वषŊ / Assessment Year: 2017-18) Ms. Ritu Bangia New Prem Nagar Capital Lal Singh Road Ludhiana-141001 बनाम/ Vs. ITO- Ward-7(1) Aaykar Bhawan Rishi Nagar Ludhiana141001 ̾थायीलेखासं./जीआइआरसं./PAN/GIR No. ABBPB-9401-G (अपीलाथŎ/Appellant) : (ŮȑथŎ / Respondent) अपीलाथŎ की ओर से / Appellant by : Sh. Sudhir Sehgal (Advocate) – Ld. AR ŮȑथŎ की ओर से / Respondent by : Smt. Kusum Bansal (CIT) – Ld. DR सुनवाईकीतारीख/Date of Hearing : 24-07-2025 घोषणाकीतारीख /Date of Pronouncement : 04-08-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 26-11-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgement basis u/s 144 of the Act on 25-12-2019. In the assessment order, Ld. AO has made certain additions u/s 68 and determined total income of Rs.331.84 Lacs as Printed from counselvise.com 2 against returned income of Rs.21.86 Lacs. The assessee failed to make any representation during assessment proceedings. The Ld. CIT(A) dismissed the appeal for want of condonation of delay of 786 days. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is admission of appeal and adjudication on merits. The Ld. CIT-DR has opposed the same. 2. Upon perusal of documents as kept in the paper-book, it could be seen that the assessee has filed various submissions and supporting documents on merits in response to hearing notices as issued by Ld. CIT(A). The assessee sought condonation of delay on the ground that the assessee being senior citizen had no knowledge of Income Tax Laws and fully dependent on professional Shri Harish Kumar for Income Tax assistance. The email id of his staff was mentioned on the portal as well as in Income Tax Return. However, he failed to appear before Ld. AO and also failed to intimate the assessee about ongoing assessment proceedings. The assessee was under a bona fide belief that earlier counsel would take care of all Income Tax compliances. Due to these facts, delay happened in the first appeal. Upon perusal of these reasons, we find that the assessee had reasonable cause for not filing the appeal within time. Moreover, substantial period fall within lockdown situation emerging from Covid-19 Pandemic and therefore, delay ought to have been condoned by Ld. CIT(A). Nevertheless, we set aside the impugned order and since the assessee has filed various documents in support of her submissions which has not been perused by any of the lower authorities, we restore the assessment back to the Printed from counselvise.com 3 file of Ld. AO for fresh assessment with a direction to the assessee to plead and prove its case forthwith. 3. The appeal stand allowed for statistical purposes. Order pronounced on 04-08-2025. Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 04-08-2025. आदेश की Ůितिलिप अŤेिषत /Copy of the Order forwarded to : 1. अपीलाथŎ/Appellant 2. ŮȑथŎ/Respondent 3. आयकरआयुƅ/CIT 4. िवभागीयŮितिनिध/DR 5. गाडŊफाईल/GF ASSISTANT REGISTRAR ITAT CHANDIGARH Printed from counselvise.com "