Aditya Prohouse Private Limited Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad Bench has condoned a 234-day delay in an income tax appeal filed by Aditya Prohouse Private Limited. The delay was attributed to the company’s accountant resigning, which resulted in missed email communications and an ex-parte appellate order from the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi.
The appeal pertained to a reassessment order for Assessment Year 2017-18. The assessee explained that the email ID linked to the appeal, as provided in Form No. 35, belonged to the former accountant, causing a failure to receive crucial communications. This led to the ex-parte decision by the CIT(A). The assessee also briefly touched upon the merits, arguing that no addition should be made for alleged “on-money” payments related to property purchases registered in 2012.
The Senior Departmental Representative for the Revenue raised no significant objection to the condonation of delay. Consequently, the ITAT condoned the 234-day delay and set aside the ex-parte appellate order. In the interest of justice, the matter has been remitted back to the CIT(A) for a decision on merits, with a cost of Rs. 5,000 imposed on the assessee, payable to the IT Department. The CIT(A) is directed to provide a proper hearing opportunity upon proof of cost payment, and the assessee is required to cooperate by submitting all necessary details. The appeal was allowed for statistical purposes.
