S K ENTERPRISES,DELHI V. INCOME TAX OFFICER, WARD 60(5), DELHI, DELHI

ITA 4244/DEL/2024

AI Insights

M/s S.K. Enterprises filed two appeals against the orders of the National Faceless Assessment Centre (NFAC), Delhi, concerning the assessment year 2013-14. The first appeal challenged the reassessment order under sections 147 and 144B of the Income Tax Act, while the second appealed against a penalty order under section 271(1)(c) of the Act. Both appeals were initially dismissed by the CIT(A) due to significant delays in filing, attributed to the mental health issues of the assessee's counsel. The ITAT, referencing a similar case involving the same assessee, decided to condone the delays and remand the cases for a fresh decision on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 41798 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Other Referred Cases: ITA 3121/Del/2024 & ITA No.3122/Del/2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SAHIL KUMAR BANSAL
• Assessee Lawyers: ANKIT GUPTA
• Keywords: Set aside; Opportunity of being heard; Reasonable cause
• Section: 147; 271(1)(c)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’: NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA No.4243/Del/2024 (ASSESSMENT YEAR 2013-14) ITA No.4244/Del/2024 (ASSESSMENT YEAR 2013-14) M/s S.K. Enterprises, S-561, School Block Shakarpur, Delhi-110092 PAN-ACDFS3126L Vs. National Faceless Assessment Centre (NFAC), Delhi. Income Tax Officer, Ward-60(5), Delhi. (Appellant) (Respondent) Assessee by Shri Ankit Gupta, Advocate Department by Shri Sahil Kumar Bansal, Sr. DR Date of Hearing 10/02/2025 Date of Pronouncement 19/02/2025 ORDER PER MANISH AGARWAL, AM: Both the appeals are filed by the assessee against the against the order of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 16/07/2024 for Asst. Year 2013-14. 2 ITA No.4243 /Del/2024 ITA No.4244/Del/2024 M/s S.K. Enterprises vs. NFAC 2. ITA No.4243/Del/2024 is in relation to order passed u/s 147 r.w.s 144B of the Income Tax Act and ITA No. 4244/Del/2024 is in relation to the penalty order passed u/s 271(1)(c) of the Act. Since, both the appeals are relating to one year i.e. Asst. Year 2013-14, therefore, the same are taken together and disposed off by a single order. The appeal against the order passed u/s 147/144B was filed delayed by 350 days before the Ld. CIT(A) and the reason for the same was given as under: “REG.: PETITION FOR CONDONATION OF DELAY, IN THE APPEAL OF M/S SK ENTERPRISES, S-561, SCHOOL BLOCK, SHAKARPUR, DELHI-110092 FOR THE ASSESSMENT YEAR 2013-14. Respected sir, With reference to the above, it is most respectfully submitted as under: That, the assessee is filling the Appeal against the order of the National Faceless Assessment Center, Delhi (NFAC) dated 23.03.2023 received on 23.03.2023. The time limit to file the appeal is 30 Days and accordingly the due date of file it expired on 21.04.2023, which could not be filed, due to the following reason, as below :- 1) That, the counsel of the assessee is Chartered Accountant Shri Ritesh Kumar having Membership Number- 541849 and Firm Registration No.030466N under the name of Ritesh Kumar & Associates, Chartered Accountant, situated at S-507A, Top Floor School Block, Near Janta Marble Store Laxmi Nagar Delhi, Laxmi Nagar S.O (East Delhi) Shakarpur, East Delhi, 09-Delhi, 91-India, Pin code - 110092. 2) That, he is regular Counsel for the aforesaid assessee, dealing all the Tax and Audit matters since last 4 years 3) That, he is also in continued treatment of depression, anxiety and minute dementia due to huge financial losses in the business, he used to trade in. 4) That, the aforesaid assessee regularly contacted me for taking the necessary action in the re-assessment proceedings for A.Y.2013-14. He always give assurance every time that every think is fine and it 3 ITA No.4243 /Del/2024 ITA No.4244/Del/2024 M/s S.K. Enterprises vs. NFAC will be taken care off. But, due to my medical condition and other stress He did not take any action or not filed any reply or detail, in the said case, even after the order was passed by National Faceless Assessment Center (NFAC), Delhi. 5) That, he also did not communicate the partner of the assessee firm about the passing of the ex-party order U/s 147/144B of the Act nor filed any appeal or any other proper action against the order passed. 6) That, after the management of the assessee came to know about such assessment order passed and huge demand raised in the name of assessee in the month of Feb, 2024, they have contacted him and appraise me, that, they are going to file complaint before the appropriate authorities for not taking proper actions in their case timely, he accepted his mistake and felt apology and ask not to take such action, which will close/hamper his practice, as it is the only source of his income left with him. 7) That, in view of the Above, he is feeling very Sorry, for not taking any action in the said case and any delay or damage cause due to his actions, if any, is attributable to him and nothing is attributable to assessee. 8) He again feel apology, for his action. Sorry and ready to bear financial loss (maximum Rs.10,000.00), caused due to his action. Further he is ready to give up as regular council of the assessee. In view of the above, the counsel of the assessee is under tremendous mental and physical pressure, due to the reason stated above, therefore, the assessee has failed to file an appeal before your goodself. The discharge summary of the hospital and diagnoses report of Smt. Akila is being enclosed, for your ready reference. the copy of affidavit of Chartered Accountant Shri Ritesh Kumar is being enclosed, for your ready reference. The regular counsel has asked the assessee to contacted to appropriate counsel to file an appeal against the alleged order. On 15th March, 2023, the assessee contacted the Shri Ankit Gupta, Advocate and asked to file, the appeal against the said order. In view of the above, it is submitted that the said delay is unintentional and due to the mistake of the previous counsel, therefore, it is humbly prayed, that, the delay may kindly be condoned. The delay is attributable to reasonable cause / sufficient cause and the delay of about 350 days in filing Appeal before NFAC, Delhi may kindly be condoned so as to enable furtherance of the cause of Justice.” 4 ITA No.4243 /Del/2024 ITA No.4244/Del/2024 M/s S.K. Enterprises vs. NFAC 4. The Ld. AR submits that the delay is cause due to the negligence of the part of the counsel and since the circumstances were beyond the control of the assessee, therefore, the delay should have been condoned. However, Ld. CIT(A), NFAC has not appreciated this fact and dismissed the appeal by not condoning the delay. He thus prayed that the delay in filing appeal before CIT(A) may please be condoned and the matter may be sent back to CIT(A) for hearing on merits. 5. Per contra, the Ld. Sr. DR vehemently supported the orders of the Ld. CIT(A) and requested for the dismissal of the appeal. 6. We have heard the parties and perused the materials available on record. The assessee has filed the appeal before the Ld. CIT(A) with the delay of 350 days against the order passed u/s 147/144B and delay of 173 days in case of appeal against order u/s 271(1(c). The assessee contended before the CIT(A) that the counsel who was dealing with all the tax and audit matters was not well and undergone treatment for depression, anxiety and minute dementia due to huge financial losses. The assessee came to know about the passing of such orders only in February, 2024 and, thereafter, the appeal could be filed. In the case of the assessee, the Co-ordinate Bench of ITAT, Delhi in the case of the assessee itself, in ITA 3121/Del/2024 & ITA No.3122/Del/2024 vide orders dated 23/10/2024 wherein under identical circumstances the appeals decided of assessee filed against the orders passed u/s 271F and u/s 271(1)(b) of the Act which were dismissed by the Ld. CIT(A) on ground of delay. The Co-ordinate 5 ITA No.4243 /Del/2024 ITA No.4244/Del/2024 M/s S.K. Enterprises vs. NFAC Bench after considering the facts has condoned the delay and set aside the orders to the file of Ld. CIT(A) to decide the matter afresh on merits. The facts in the present appeals are also identical, therefore, by following the decision of Co-ordinate Bench (supra) the delay in the filing of appeal before the CIT(A) is hereby condoned. Accordingly, we set aside the orders of the Ld. CIT(A) and both the appeals are set aside to the file of the Ld. CIT(A) with a direction to decide these appeals on merit in accordance with law after providing sufficient opportunity of being heard to the assessee. 7. In the result, both appeals of the assessee are allowed for statistical purposes. Order pronounced on 19/02/2025. Sd/- Sd/- (ANUBHAV SHARMA) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated:19/02/2025 PK/Ps Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI "