Vishal Infraglobal Pvt. Ltd. Vs DCIT (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad addressed two appeals filed by Vishal Infraglobal Pvt.Ltd. against orders passed by the Commissioner of Income Tax (Appeals) [CIT(A)], National Faceless Appeal Centre (NFAC), Delhi, for the Assessment Year 2018-19. The first appeal challenged the ex-parte dismissal of the assessee’s appeal against an assessment order that determined a total income of ₹3,47,21,400. The second appeal contested the CIT(A)’s decision upholding the penalty of ₹56,38,318 levied under section 270A of the Income Tax Act by the Assessing Officer (AO). Both initial appeals to the CIT(A) were dismissed solely on the grounds of limitation, with delays of 329 days in the quantum appeal and 148 days in the penalty appeal, as the CIT(A) found no sufficient cause for condoning these delays.
Before the ITAT, the assessee argued that the reasons for the delay were clearly and sufficiently explained in the statement of facts presented to the CIT(A) but were not duly considered, leading to the dismissal of their appeals without a hearing. The assessee further contended that since both the assessment and penalty proceedings were concluded ex-parte, without providing a proper opportunity for hearing, the matter should be sent back to the AO for a fresh adjudication. The Departmental Representative did not strongly oppose this proposal. The ITAT, after reviewing the material and the explanation for the delay, concluded that the assessee had demonstrated reasonable cause for the delays. Considering the significant amounts involved in the additions and the penalty, and adhering to the principle that litigants should not be denied a hearing if a plausible explanation exists, the ITAT decided to condone the delays in both appeals. Consequently, the ITAT set aside the CIT(A)’s orders for both the quantum assessment and the penalty, restoring the issues to the AO for a fresh assessment in accordance with the law, with the condition that the assessee fully cooperates in the reopened proceedings. Both appeals were thus allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
