Prathmik Krashi Saka Shakari Samiti Chatholi Vs ITO (ITAT Indore)
Summary: The assessee, Prathmik Krashi Saka Shakari Samiti Chatholi, filed an appeal before the ITAT, Indore Bench under section 253 of the Income-tax Act, 1961 against the order of the CIT(A), which had rejected its first appeal without adjudicating the substantive grounds because of a delay of 336 days. The assessment for AY 2015-16 had been completed under section 147 read with sections 144/144B, determining total income at Rs 2,07,19,602/- against a nil return and making additions of Rs 2,04,02,708/- towards unexplained and unaccounted cash deposits, Rs 9,243/- towards contract receipts and Rs 3,07,651/- towards commission/brokerage. The assessee had initially approached the CIT(A) under section 246A, but the appeal filed on 10.05.2024 was treated as delayed by 336 days and was rejected after the CIT(A) declined to condone the delay under section 249(3).
Before the Tribunal, the assessee explained that its Chartered Accountant, Mr. Priyansh Agarwal, who was in possession of the relevant paper book, password and communications, had passed away on 01.10.2022. According to the assessee, this resulted in loss of access to crucial information and documents, while notices under sections 148, 142(1) and 144 had been received on the former counsel’s email account, resulting in non-participation in the assessment proceedings. The assessee subsequently retrieved the necessary information with assistance from Mr. Agarwal’s former employees and filed the first appeal together with an affidavit seeking condonation of delay. The Revenue representative concurred that the death of the CA had created difficulties before and after the assessment order. The Tribunal observed that the assessment order was ex parte in nature under section 144 and that the matter had not been adjudicated on merits.
