Srinivasarao Ganta Vs ITO (ITAT Visakhapatnam)
CIT(A) Cannot Dismiss Appeal for Non-Prosecution -284-Day Delay Condoned – ITAT Restores MLA ’s Appeal-Auditor’s Death & Political Duties Accepted as Sufficient Cause for Delay
Assessee, a sitting Member of the Legislative Assembly, had filed appeal against assessment order u/s 143(3) r.w.s. 144B sustaining addition of Rs. 96 lakh by treating claimed agricultural income u/s 10(1) as non-agricultural. CIT(A) dismissed the appeal ex parte on 03.06.2024 for non-compliance.
Assessee explained that the appeal was filed earlier through his regular auditor, but after the auditor’s death in March 2023, the firm’s operations were disrupted & further notices went unattended. Being engaged in public duties, Assessee remained unaware of the ex parte order until May 2025 when IT Department intimated about outstanding demand. Supported by affidavit, he sought condonation of delay.
Tribunal found sufficient cause for delay & condoned it. It observed that CIT(A) erred in dismissing the appeal ex parte without adjudicating issues on merits as mandated by s.250(6). Referring to Premkumar Arjundas Luthra (HUF) (Bom HC), it held that CIT(A) cannot dismiss an appeal for non-prosecution but must decide on merits. Accordingly, the order was set aside & matter remanded to CIT(A) for de novo adjudication after giving reasonable opportunity. Thus, the appeal was allowed for statistical purposes.
