Bhadra Sahakari Sakkare Kharkhane Niyamitha Vs ITO (ITAT Bangalore)
In Bhadra Sahakari Sakkare Kharkhane Niyamitha Vs ITO, the ITAT Bangalore addressed a 231-day delay in filing an appeal due to the CIT(Appeals) notices being sent to an outdated email address of a former Chartered Accountant. The assessee was unaware of the CIT(A)’s order passed on July 31, 2023, until March 31, 2024, and subsequently filed the appeal on May 17, 2024. The ITAT, finding sufficient grounds for the delay under the precedent set by the Supreme Court in Collector, Land Acquisition Vs. MST. Katiji, remanded the case to the CIT(A) for fresh examination. The Assessing Officer had disallowed expenses totaling ₹4.76 crore, citing non-payment and non-compliance with Section 43B of the Income Tax Act. The FAA’s dismissal of the appeal was due to lack of response from the assessee. The ITAT directed the assessee to update contact details and submit necessary documents for proper adjudication while ensuring a fair opportunity to present their case.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This appeal is filed by the assessee against the order dated 31.7.2023 of the CIT(Appeals), National Faceless Appeal Centre, Delhi [NFAC], for the AY 2016-17.
2. At the outset there is a delay of 231 days in filing the appeal by the assessee and the assessee has filed affidavit stating that the order of the CIT(A) was never served upon the assessee. Only when the appellant in connection with some other matter enquired with the Chartered Accountant regarding pending matters, refund, etc., the appellant came to know about the ex parte order passed by the CIT(A) on 31.7.2023 confirming the order of AO. The CIT(A)’s order was downloaded on 31.3.2024. On the advise of the counsel, appeal came to be filed immediately on 17.5.2024 advised that an appeal has to be filed before the ITAT. It is submitted that the uploading of CIT(A)’s order on the IT portal on 31.3.2024 is not a service of the order on the appellant. The delay of 232 days is only a deemed delay. However, it was requested that due to above reasons, the delay may be condoned.
