Akshaya Builders Developers Promoters Vs ACIT (ITAT Bangalore)
In the case of Akshaya Builders Developers Promoters Vs ACIT (ITA No. 1736/Bang/2024), the Income Tax Appellate Tribunal (ITAT) Bangalore condoned a delay of 355 days in filing the appeal due to a serious dispute among the partners of the assessee firm. The assessee, a real estate partnership firm, had failed to file its return of income for assessment years 2017-18 and 2018-19. After scrutiny, the Assessing Officer (AO) issued notices, and the assessee filed the returns but did not attend the proceedings. As a result, the AO treated the returns as invalid. The firm then filed appeals, but the Commissioner of Income Tax (Appeals) (CIT(A)) dismissed them ex-parte after several failed attempts to hear the case.
The ITAT, after reviewing the situation, found that the delay in filing the appeal was due to genuine internal issues among the firm’s partners. Considering this, the tribunal condoned the delay and decided to proceed with the appeal on merits. However, the ITAT noted the assessee’s lack of cooperation during earlier proceedings, both with the AO and the CIT(A), indicating negligence on the part of the firm. As a result, the ITAT remanded the case for fresh assessment by the AO with a cost of Rs. 50,000 for each assessment year, directing the assessee to deposit the cost and submit the challans to the AO. The ITAT emphasized that if the assessee failed to cooperate in the remand proceedings, no leniency would be granted in future. The appeals were thus allowed for statistical purposes, setting the stage for a fresh hearing.
