Malavagoppa Hallapa Sharath Vs ITO (ITAT Bangalore)
Summary: The assessee, Malavagoppa Hallapa Sharath, challenged the order of the CIT(A)/NFAC, Delhi dated 27.10.2025 for AY 2022-23, whereby the appeal against penalty proceedings under section 271AAC(1) of the Income-tax Act, 1961 was dismissed without condoning a delay of 247 days. The penalty was Rs. 2,48,433 and arose from additions of Rs. 31,85,040 under section 69A.
Before the Tribunal, the assessee submitted that he was a farmer from a rural area and had handed over the matter to an income-tax professional for filing the necessary submissions. According to the assessee, the professional did not file submissions before the Assessing Officer, resulting in a best-judgment assessment. The assessee stated that he became aware of the non-compliance only when his current Chartered Accountant accessed the e-filing portal in April 2025, after which immediate steps were taken to file the appeal. The assessee therefore contended that the delay was neither deliberate nor intended to secure any advantage.
The Revenue opposed condonation, pointing out that the assessee had neither appeared before the Assessing Officer nor filed the appeal before the CIT(A)/NFAC within the prescribed period, which, according to the Revenue, demonstrated carelessness.
The ITAT Bangalore examined whether the assessee had shown sufficient cause for the 247-day delay. It accepted the explanation and found no mala fide intention. The Tribunal emphasised that delay may be condoned where sufficient and reasonable cause is established and that the explanation must be examined pragmatically rather than mechanically.
