Udai Lal Mahabir Prasad HP Petrol Pump Vs ITO (ITAT Jaipur)
Conclusion: Tribunal had imposed a cost of ₹2,000 on M/s. Udai Lal Mahabir Prasad for failing to explain the delay in filing its appeal and remanded the disallowance issue to the Assessing Officer (AO) for fresh adjudication.
Held: Assessee had appealed an order passed under section 143(1). CIT(A) dismissed the appeal as time barred, noting a delay of 1,401 days in filing. CIT(A) recorded that assessee had failed to furnish sufficient cause for condonation of delay, particularly for the period from 18.11.2022 to 30.03.2023, and had also not produced any material evidence to establish that the intimation under section 143(1) was not served. Assessee contended that it became aware of the demand only when checking its account on the Income Tax Portal and also claimed to have attempted to file a rectification petition under section 154 before AO, but could not submit it online due to technical issues. The dispute concerned the disallowance of ₹3,62,264 paid to partner Shikhar Chand Jain in his individual capacity, though he was representing his Hindu Undivided Family (HUF) in the firm. Assessee argued that this payment had been accepted in scrutiny assessment for the immediately preceding year and urged for a decision on the merits. It was held that there was no convincing explanation or supporting evidence for the delay, and therefore agreed that the delay was unexplained. Tribunal also observed that the disallowance issue required adjudication on merits. In the interest of justice, it set aside the order of CIT(A) and remanded the matter to the file of the AO for a fresh decision. Tribunal made the remand conditional upon assessee depositing a cost of ₹2,000 in the Prime Minister’s National Relief Fund (PMNRF) and directed that AO should consider the matter afresh after giving the assessee a reasonable opportunity of being heard. The appeal was thus partly allowed, with the issue restored to the AO for fresh adjudication and a cost imposed for the unexplained delay.
