Lahar Joshi Vs ITO (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT) Ahmedabad has condoned a 552-day delay in filing an appeal by Lahar Joshi against a penalty order under Section 270A of the Income Tax Act. The appeal was filed against the Commissioner of Income Tax (Appeals) [CIT(A)] – National Faceless Appeal Centre (NFAC), Delhi, which had dismissed it solely on the grounds of delay without considering its merits. Observing that the assessee was not given sufficient opportunity to present reasons for the delay, the ITAT remanded the matter back to CIT(A) for fresh adjudication.
The case stemmed from an assessment for AY 2018-19, where the Assessing Officer (AO) added ₹10.35 lakh to the assessee’s income for non-disclosure of remuneration received from M/s. Pink Elephant Disruption LLP. Subsequently, a penalty of ₹5.35 lakh (200% of the tax on the alleged underreported income) was imposed under Section 270A, treating the omission as misreporting of income. The assessee argued that the omission was unintentional and that he had already paid the tax demand within 30 days of the assessment order. However, the CIT(A) rejected his appeal solely on the grounds of delayed filing, without reviewing the merits of the case.
During the ITAT hearing, the assessee contended that he was unaware of the penalty order and only discovered it when he was expecting a tax refund. Upon realization, he promptly filed an appeal. The ITAT found this explanation reasonable, noting that CIT(A) had not clarified whether notice of hearings was duly served to the assessee. Further, the principles of natural justice require a fair hearing, which was not granted in this case. The ITAT, therefore, condoned the delay and directed CIT(A) to reassess the case on its merits.
