Harjivanbhai Makanbhai Barasara Vs ITO (ITAT Rajkot)
Assessee filed quantum & penalty appeals with heavy delay: 2 years 3 months in quantum appeal & over 1 year in penalty appeal. CIT(A)/NFAC dismissed both solely on limitation without examining merits. Assessee explained through affidavit that he is an uneducated individual who fully relied on his CA/advocate; despite receiving documents from Assessee, the CA negligently failed to file appeals in time. Assessee argued that he should not suffer for the professional’s mistake.
Tribunal held that the explanation was bona fide & supported by evidence. Relying on Kolkata ITAT decision in Garg Bros Pvt Ltd (delay due to wrong professional advice), Tribunal held that Assessee cannot be penalised for CA’s lapse. Accordingly, delay before CIT(A) was condoned in both appeals.
On merits, Tribunal observed that CIT(A)’s order was ex-parte, non-speaking, & passed without granting proper opportunity. Tribunal held this to be a violation of natural justice. However, since Assessee also displayed non-compliance before authorities, Tribunal imposed a cost of ₹6,000, to be deposited in the PM National Relief Fund.
For quantum appeal, Tribunal remitted the matter back to AO for de-novo adjudication, directing AO to pass a speaking order after giving adequate opportunity, & directing Assessee to fully cooperate.
