Good View Technologies Pvt Ltd Vs DCIT (ITAT Delhi)
Assessee filed appeal against order passed u/s 153C r.w.s.144 making additions of Rs.91,00,000/- as unexplained share capital/share application money & Rs.1,54,300/- as ad-hoc expense disallowance. An 8-day delay before Tribunal was condoned. Issue concerned a much larger delay of 8 months before CIT(A). Assessee explained that the company’s affairs were handled by Shri Rahul Gaur, who was arrested by Odisha Police on 07/12/2015 & remained in custody till March 2016. Assessee collected assessment order only on 31/10/2016 & filed appeal on 26/11/2016. These facts were placed before CIT(A).
CIT(A) refused to condone delay but simultaneously proceeded to decide the appeal on merits, rejecting additions. Tribunal held that this approach was legally unsustainable since once delay is not condoned, appeal becomes non-admitted & cannot be adjudicated on merits.
Tribunal observed that the arrest & prolonged custody of key managerial person constituted sufficient cause, preventing Assessee from filing appeal in time & from properly representing proceedings. Tribunal therefore condoned the delay of eight months before CIT(A) & held that principles of natural justice warranted fresh adjudication. Accordingly, Tribunal set aside the order of CIT(A) & restored matter for de novo adjudication, directing that due opportunity be granted & Assessee may file all necessary evidence. Appeal was allowed for statistical purposes.
