Jagdish Prasad Singhania Vs ACIT (TDS) (Chhattisgarh High Court)
The Chhattisgarh High Court heard an appeal under Section 260 of the Income Tax Act challenging the ITAT’s order refusing to condone a 161-day delay in filing an appeal against a penalty under Section 271C. The substantial question of law framed was whether the ITAT was justified in dismissing the appeal by holding that no sufficient cause had been shown for the delay.
The Assessing Officer, by assessment order dated 29.12.2016, made an addition of Rs. 14,11,167 under Section 69(C) and disallowed Rs. 50,000 towards wages and Rs. 15,000 towards office expenses. The matter was referred to the Additional Commissioner of Income Tax (TDS), Raipur, who, by order dated 30.06.2019, held that the assessee had failed to deduct TDS on interest paid or credited and imposed a penalty of Rs. 7,70,000 under Section 271C. The Commissioner of Income Tax (Appeals) dismissed the assessee’s appeal on 29.07.2022. The assessee thereafter filed an appeal before the ITAT with a delay of 161 days, which the ITAT refused to condone by order dated 02.11.2023, resulting in dismissal of the appeal as time-barred.
Before the High Court, the assessee relied upon the Supreme Court’s decision in Vidya Shankar Jaiswal v. The Income-Tax Officer, Ward-2, Ambikapur and an order of the High Court dated 04.02.2025 in Pradeep Kumar Khandelwal v. The Income Tax Officer-1(1), Raipur. The assessee explained the delay by stating that his wife had undergone major surgery, he himself was unwell during the relevant period, and filed an affidavit along with medical documents. The Revenue supported the ITAT’s order.
