Srimad Virat Pottuluri Veera Vs ITO (ITAT Hyderabad)
Delay of 632 Days Not Condoned – Appeal Dismissed as Time-Barred; Penalty u/s 271(1)(c) Quashed for Lack of Satisfaction in Assessment Order – ITAT Hyderabad
In the first appeal, a religious trust sought condonation of 632-day delay citing death of founder, internal disputes and takeover by Endowment Authority. ITAT held that “sufficient cause” must show circumstances beyond control and mere internal issues or vague affidavits cannot justify prolonged inaction. Since the assessee failed to explain delay convincingly or on day-to-day basis, the Tribunal rejected condonation and dismissed the appeal as barred by limitation.
In the connected penalty appeal, ITAT examined penalty levied u/s 271(1)(c). The Tribunal found that the AO had not recorded any clear satisfaction in the assessment order regarding concealment or furnishing inaccurate particulars, which is a mandatory jurisdictional requirement. Relying on judicial precedents such as Ram Commercial Enterprises Ltd. and V.R. Projects & Investments (P.) Ltd., ITAT held that mere initiation of penalty without recorded satisfaction is invalid. Accordingly, the penalty was deleted. Resultantly, one appeal was dismissed on limitation while the penalty appeal was allowed
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
The captioned appeals are filed by Srimad Virat Pottuluri Veera Brahmendra Swamula Vari Mattam (“the assessee”), feeling aggrieved by the separate orders passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”) dated 21/08/2023 and 21/10/2025 respectively for the A.Y.2016-17.
