SAPPHIRE INFRASTRUCTURE,AHMEDABAD V. THE ITO, WARD-5(3)(1), AHMEDABAD

ITA 1991/AHD/2024

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Sapphire Infrastructure, a partnership firm engaged in building construction, filed an appeal against the order of the Commissioner of Income Tax (Appeals), which had dismissed their earlier appeal as not maintainable due to a delay of 86 days. This delay was attributed to the disruptions caused by the Covid-19 pandemic. The original assessment for the year 2018-19 included substantial additions to the assessee's income, which were contested. The Tribunal found merit in the assessee's request to have the matter reconsidered on its merits, given the circumstances of the pandemic and the lack of serious objection from the Revenue.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 23287 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Reasonable cause; Principle of natural justice
• Section: 144

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “C” BENCH Before: Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member Sapphire Infrastructure 24, Shrimali Society, Opp. Navrangpura Police Station, Ahmedabad Gujarat-380009 PAN: ABWFS5709B (Appellant) Vs The ITO, Ward-5(3)(1), Ahmedabad (Respondent) Assessee Represented: Shri S. N. Divatia, A.R. & Shri Samir Vora, A.R. Revenue Represented: Shri A.P. Singh, CIT-DR Date of hearing : 06-03-2025 Date of pronouncement : 07-03-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the appellate order dated 09.10.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, (in short referred to as “CIT(A)”), arising out of the assessment order passed under section 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) relating to the Assessment Year 2018-19. ITA No. 1991/Ahd/2024 Assessment Year. 2018-19 I.T.A No. 1991/Ahd/2024 A.Y. 2018-19 Page No Sapphire Infrastructure. vs. ITO 2 2. At the outset, Ld. Counsel submitted that the assessee is Partnership Firm was engaged in the business of Building Construction and presently the Firm is closed. For the Asst. Year 2018-19, assessee filed its Return of Income on 25-10-2018 declaring total income at Rs. 14,27,950/-. The return was selected for scrutiny assessment and notices were issued, since the firm was closed from business activities, exparte assessment order was passed making following additions: (i) Stamp duty expenses Rs. 31,48,300/- (ii) Advertisement expenses Rs. 6,300/- (iii) Interest expenses Rs. 20,52,155/- (iv) Unsecured loans Rs.7,69,22,500/- Thus Ld. A.O. determined the total income at Rs. 8,35,57,205/- and demanded tax thereon. 3. Aggrieved against the exparte order dated 26-04-2021, assessee filed an appeal belatedly with a delay of 86 days. Ld. CIT(A) held that no reasonable cause adduced by the assessee for the delay thereby dismissed the appeal as not maintainable. 4. Aggrieved against the appellate order, assessee is in appeal before us and filed Paper Book containing various details namely Tax Audit Report, Ledger Account of Partners and Unsecured loan details with bank statements, Advertisement expenses and Stamp Duty charges. Thus Ld. Counsel pleaded to set aside the matter back to the Ld. CIT(A) to decide the appeal on merits of the case on the ground that the condonation period mainly falls immediate after Covid-19 Pandemic situation. I.T.A No. 1991/Ahd/2024 A.Y. 2018-19 Page No Sapphire Infrastructure. vs. ITO 3 5. Ld. CIT-DR appearing for the Revenue has no serious objection in setting aside the matter back to the file of Ld. CIT(A) to decide the case on merits. 6. Recording the above statements of rival parties, the delay of 86 days in filing the appeal before Ld. CIT(A), which falls immediate after Covid-19 Pandemic period is hereby condoned. However in the interest of Principle of Natural Justice, the Ld. CIT(A) is directed to pass order on merits of the case by giving proper opportunity of hearing to the assessee. Needless to say, the assessee should cooperate by filing all relevant materials/evidences before the Ld. CIT(A) to pass order on merits of the case. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 07-03-2025 Sd/- Sd/- (ANNAPURNA GUPTA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 07/03/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "