Iron Build Systems Private Limited Vs ACIT (Gujarat High Court)
The Gujarat High Court considered an appeal under Section 260A of the Income Tax Act, 1961 against the ITAT Ahmedabad order dated 21.02.2022 for A.Y. 2009-10. The assessee, a private limited company engaged in manufacturing batching and weighing systems and automation in material handling equipment, had filed its return declaring total income of Rs.22,65,759. The assessment under Section 143(3) dated 29.12.2011 involved an addition of Rs.62,73,534 relating to bogus purchases and expenses and differences in closing balances of certain creditors. The CIT(A) partly allowed the assessee’s appeal by order dated 06.03.2014.
The assessee thereafter appealed to the Tribunal with a delay of 712 days. In an affidavit, its Director stated that the CIT(A)’s order had been received by the Accounts Manager, who subsequently left the company and the country in May 2016. According to the affidavit, the company became aware of the appellate order when recovery proceedings commenced after appeal effect was given in March 2016. The Tribunal declined to condone the delay, considering the explanation insufficient, and dismissed the appeal.
The Gujarat High Court admitted only the question concerning whether the Tribunal was correct in refusing to condone the delay. The assessee submitted that the explanation constituted sufficient cause and relied upon several judicial decisions. The Revenue supported the Tribunal’s decision.
