Case Law Details
Agrawal Pathshala Vs ITO (ITAT Delhi)
In a recent judgment between Agrawal Pathshala and the Income Tax Officer (ITO), ITAT Delhi overturned a dismissal made by the Commissioner of Income Tax (Appeals) or CIT(A) due to lack of merit analysis in the case. The case revolves around a penalty imposed by the Assessing Officer (AO) related to cash deposits made by the assessee in the State Bank of India during the Financial Year 2009-10.
According to the records, the AO made an addition to the cash deposits amounting to Rs.29,82,399/-, on which a penalty of Rs.8,99,682/- was imposed. The assessee filed an appeal against this penalty before the CIT(A). However, the CIT(A) dismissed the appeal, attributing the dismissal to an 8-month delay in filing the appeal, without substantively addressing the case’s merits.
The assessee, represented by its Authorized Person, Surendra Prakash Bansal, claimed that the delay resulted from not receiving the assessment order on time and only becoming aware of it when notices under sections 221(1) & 226(3) of the Income Tax Act were received. The Assessee’s representatives requested another opportunity to present their case before the CIT(A), pledging to provide all necessary documents and information to the authorities.
Upon hearing both parties, ITAT Delhi noted that the CIT(A) had dismissed the appeal mainly due to the delay in filing, without considering the merits of the case. Considering the affidavit provided by the assessee and the absence of any contrary material, ITAT Delhi concluded that the delay was not due to malafide intentions and should be condoned.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
