Case Law Details
Nimesh Kanubhai Topiwala Vs DCIT (ITAT Surat)
ITAT Surat held that the delay in filing appeal before ld CIT(A)/ NFAC is not deliberate or intentional or gross negligence on part of assessee and hence the same is condoned.
Facts- Central Processing Centre (CPC), Bangalore while processing the return of assessee made disallowance u/s. 40(a)(ia) of the Income Tax Act, 1961 @ 30% of professional fees and salary expenses, reported in audit report for want of deduction of tax at source (TDS). The assessee filed application u/s. 154 for rectification of such mistakes. The application of assessee was rejected vide order dated 20/11/2019. The said rejection order was not communicated to the assessee by way of SMS alert. The assessee has not seen their e-mail, thus the Karta of assessee was not aware about dismissal/rejection of application under Section 154 by the CPC. While filing return of income for subsequent assessment year, the assessee and his Chartered Accountant realized/came to know about rejection of application under Section 154 by the CPC on 20/05/2020.
The assessee immediately downloaded the order and filed appeal on 09/06/2020. The appeal of assessee was dismissed vide order dated 23/03/2023, without giving opportunity to explain the fact.
Conclusion- Held that the delay in filing appeal before ld CIT(A)/ NFAC is not deliberate or intentional or gross negligence on part of assessee, therefore, considering the principle that when technical consideration and cause of substantial justice are pitted against each other, the cause of substantial justice may be preferred, therefore, delay in filing appeal before the ld. CIT(A) is condoned. And the order of ld CIT(A) is set aside.
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