Sandeep Prasad Vs ITO (ITAT Kolkata)
In a significant ruling emphasizing the principle of natural justice, the Income Tax Appellate Tribunal (ITAT) Kolkata Bench has condoned a 148-day delay in filing an appeal by assessee Sandeep Prasad for Assessment Year 2010-11. The Tribunal, in its order dated February 25, 2025, has remanded the case back to the Commissioner of Income Tax (Appeals) [CIT(A)] for a fresh adjudication on merits, citing the assessee’s medical incapacitation and alleged legal oversight as “sufficient cause” for the delay.
The legal dispute stemmed from an assessment order passed ex-parte under Section 144 of the Income Tax Act, 1961, by the Assessing Officer (AO). In this order, the AO added Rs. 31,16,000/- to Sandeep Prasad’s income, categorizing it as unverified cash deposits in a bank account. Aggrieved by this unilateral addition, Prasad sought recourse before the CIT(A). However, his appeal was also dismissed, largely due to non-compliance with notices for hearings and the CIT(A)’s refusal to condone a five-month delay in filing the first appeal. This resulted in the confirmation of the AO’s addition, compelling the assessee to approach the ITAT.
Before the ITAT, the assessee’s counsel presented an affidavit explaining the protracted delay. The affidavit stated that the appeal before the ITAT, which was due to expire on January 29, 2024, was delayed by 147 days because Sandeep Prasad was suffering from a “brain defect” between January 15, 2024, and May 28, 2024. A medical certificate was submitted in support of this claim. Additionally, the counsel attributed part of the non-compliance before the lower authorities to the “carelessness” of the then-appointed legal representative. Requesting a renewed opportunity to present the case, the assessee sought the Tribunal’s leniency. The Departmental Representative, in a conciliatory stance, indicated no objection to remanding the matter back to the CIT(A) for a fresh hearing on merits.
