SRIRAMA CHANDRA AKELLA,HYDERABAD V. DCIT., CIRCLE-12(1), HYDERABAD

ITA 846/HYD/2024

AI Insights

The case involves Srirama Chandra Akella, a salaried employee, who appealed against the order of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, concerning the assessment year 2018-19. The appeal was initially dismissed by the CIT(A) due to a delay of 106 days in filing, which the assessee attributed to a misunderstanding of the assessment and penalty proceedings as a continuous process. The Tribunal found merit in the assessee's explanation for the delay and decided to condone it, emphasizing the importance of deciding the cause on its merits rather than procedural technicalities.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472722 (ITAT-HYDERABAD)
• Duration Of Justice: 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 24-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 31-08-2024
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S.VENKATESWARLU
• Keywords: Set aside

Judgement Text

" आआआआ आआआआआआ आआआआआआ, आआआआआआआआ आआआ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘ B ’ Bench, Hyderabad BEFORE SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.846/Hyd/2024 (निर्धारण वर्ा/Assessment Year:2018-19) Srirama Chandra Akella, Hyderabad. PAN :AFPPA4899D Vs. Dy. Commissioner of Income Tax, Circle-12(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri S. Venkateswarlu, C.A. रधजस् व द्वधरध/Revenue by:: Shri Madan Mohan Meena, SR-DR सुिवधई की तधरीख/Date of hearing: 24.10.2024 घोर्णध की तधरीख/Pronouncement: 05.11.2024 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal filed by Srirama Chandra Akella, Hyderabad (“the assessee”) feeling aggrieved by the order dated 29.07.2024 of the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”) relating to A.Y. 2018-19. 2. At the outset, the Ld. AR submitted that there was a delay of 106 days in filing the appeal before the Ld. CIT(A). However, the Ld. CIT(A) without condoning the delay and without going to the merits of the appeal, dismissed the appeal of the assessee. ITA No.846/Hyd/2024 2 The Ld. AR further submitted that the assessee is a salaried employee and was unknown about the assessment as well as appellate procedure under the Income Tax Act, 1961 (“the Act”). After the assessment proceedings, the penalty proceeding was initiated by the Ld. AO in the case of the assessee and the assessee was under impression that the penalty proceedings are continuous process of assessment proceedings and both the assessment proceedings and the penalty proceedings are one and the same. However, during the penalty proceedings, the Ld. AO informed the assessee that separate appeal is required to be filed against the assessment order of the Ld. AO. After coming to know from the Ld. AO, the assessee filed the appeal before the Ld. CIT(A). Due to this reason, the delay of 106 days occurred in filing the appeal before the Ld. CIT(A). Therefore, the Ld. AR submitted that there was a bona fide belief on the part of the assessee and the delay was caused due to the reason which was out of control of the assessee. Therefore the Ld. AR prayed before the bench to condone the delay occurred in filing the appeal before the Ld. CIT(A) and prayed to set aside the issue for consideration on merits. The Ld. AR also submitted that some documents/details could not be filed before the Ld. AO during ITA No.846/Hyd/2024 3 the assessment proceedings, which need to be verified at the Ld. AO level. Therefore, he prayed before the bench to set aside the issue to the file of Ld. AO. 3. Per contra, the Ld. DR placed reliance on the order of Ld. CIT(A) and submitted that there was unreasonable delay of 106 days in filing the appeal before the Ld. CIT(A). Therefore, the appeal of the assessee is liable to be dismissed. 4. We have heard the rival contentions and also gone through the record in the light of the submissions made on either side. It is found that the Ld. CIT(A) dismissed the appeal of the assessee without going to the merits of the case as the appeal was filed with delay. Perusing the submissions of the Ld. AR regarding the reason for delay in filing the appeal before the Ld. CIT(A), we are of the view that there was reasonable ground for delay in filing the appeal before the Ld. CIT(A). Therefore, we condone the delay in filing the appeal before the Ld. CIT(A). As the Ld. CIT(A) dismissed the appeal of the assessee in limine, the appeal of the assessee could not be heard on merits before the Ld. CIT(A). Further, as submitted by the Ld. AR some documents / details could not be filed by the assessee before the Ld. AO ITA No.846/Hyd/2024 4 during the time of assessment, which resulted in passing the orders without consideration thereof. Be that as it may, now the assessee is ready to produce all such documentary evidence in support of his contentions and get the matter disposed of on merits. The highest that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. With this view of the matter, we are of the view that fresh opportunity should be given to the assessee and, accordingly, we set aside the impugned order and restore the issue to the file of the Ld. A.O. for passing a fresh order on merits after affording the opportunity of hearing to the assessee. Grounds of appeal are answered accordingly. 6. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open Court on 5th November, 2024. Sd/- Sd/- (K. NARASIMHA CHARY) (MADHUSUDAN SAWDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad. Dated: 05.11.2024. * Reddy gp Copy of the Order forwarded to : ITA No.846/Hyd/2024 5 1. Shri Srirama Chandra Akella, Flat-G1, Lotus Height Apartment, Street 8, Habsiguda, Hyderabad-500 036 2. DCIT, Circle 12(1), Hyderabad. 3. Pr. CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard file. "