UTTAM KRISHNANI,REWA V. ASSISTANT COMMISSIONER OF INCOME TAX , KATNI

ITA 182/JAB/2024

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The case involves Uttam Krishnani, the proprietor of M/s Sudheer Spairs, who appealed against the order of the Commissioner of Income Tax (Appeals) which dismissed his appeal for non-prosecution. The original dispute arose from a rectification order under section 154 read with section 143(3) of the Income Tax Act, which altered the tax rate applied to Krishnani's income for the assessment year 2017-18 from the normal rate of 30% to 77.25% under section 115BBE. The Tribunal found that the CIT(A) had erred in not considering the sufficient cause for the delay in filing the appeal, as stipulated under section 249(3) of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772420 (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: N. M. PRASAD; .
• Assessee Lawyers: SAPAN USRETHE
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Rectification of order
• Section: 143(3); 154

Judgement Text

"I.T.A. No.182/JAB/2024 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.182/JAB/2024 Assessment year:2017-18 Uttam Krishnani Prop. M/s Sudheer Spairs Laxmi Market, Prakash Chowk, Hujur, Rewa. PAN:AEYPK1626G Vs. A.C.I.T., Circle-Katni. (Appellant) (Respondent) O R D E R (A) This appeal vide I.T.A. No.182/JBP/2024 has been filed by the assessee for assessment year 2017-18 against impugned appellate order dated 30/09/2024 (DIN & Order No.ITBA/NFAC/S/250/2024- 25/1069259420(1) of Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) The facts of the case, in brief, are that the assessee is an individual, filed his return of income on 05/12/2017 declaring total income of Appellant by Shri Sapan Usrethe, Advocate Respondent by Shri N. M. Prasad, Sr. D.R. 1 Printed from counselvise.com I.T.A. No.182/JAB/2024 Assessment Year:2017-18 2 Rs.20,95,110/-. The Assessing Officer passed assessment order u/s 143(3) of the Act on 05/12/2019 and determined the total income of the assessee at Rs.20,95,110/-. The Assessing Officer passed rectification order u/s 154 read with section 143(3) of the Act on 24/11/2022 and levied the tax @77.25% instead of 30% as a normal rate by applying the provisions of section 115BBE of the Act. Being aggrieved, the assessee filed appeal against the rectification order in the office of learned CIT(A). Vide order dated 30/09/2024, the assessee’s appeal was dismissed by the learned CIT(A) for non prosecution. Being aggrieved further, the assessee has filed the present appeal in Income Tax Appellate Tribunal against the aforesaid impugned appellate order of learned CIT(A). (C) Both sides were heard. Materials available on record were perused. On perusal of records, it is evident that the learned CIT(A) dismissed the assessee’s appeal on limitation ground, treating the assessee’s appeal as time barred. The assessee’s application for condonation of delay was not considered favourably by learned CIT(A). From the records, it is evident that there was sufficient cause, within the meaning of section 249(3) of the Act because of which the assessee could not file appeal in the office of learned CIT(A) within time frame mentioned in section 249(2) of the Act. 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. In view of section 250(6) of the I. T. Act, the learned CIT(A) has statutory duty to pass a speaking order on merits on the various grounds of appeal filed by the assessee. Having regard to the same, we set aside the impugned appellate order dated 30/09/2024 to the file of learned CIT(A) with the direction to condone the delay and pass de Printed from counselvise.com I.T.A. No.182/JAB/2024 Assessment Year:2017-18 3 novo order on merits in accordance with law after providing reasonable opportunity of being heard to the assessee. (D) In the result, the appeal 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 "