Anita Kesari Vs ITO (ITAT Indore)
The Indore Bench of the Income Tax Appellate Tribunal (ITAT) adjudicated two appeals filed by the assessee for Assessment Year 2017-18. Both appeals were delayed by 97 days. The assessee submitted affidavits seeking condonation of delay, explaining the reasons for late filing. The Revenue did not object to the condonation request. The Tribunal, after considering the explanations, found that the assessee had demonstrated “sufficient cause” under Section 253(5) of the Income-tax Act, 1961. Relying on the principle laid down by the Supreme Court in Collector, Land Acquisition vs. Mst. Katiji and Others, the Tribunal condoned the delay, admitted both appeals, and proceeded to decide them on merits.
In ITA No. 783/Ind/2025, the dispute related to a penalty of Rs. 2,26,020 imposed under Section 271AAC(1) in connection with an addition of Rs. 37,67,000 made under Section 69A read with Section 115BBE in reassessment proceedings. Both parties agreed that the assessee’s quantum appeal against the underlying assessment order had already been decided by the Tribunal through an earlier order dated 29 April 2025. In that order, the assessment had been set aside and restored to the Assessing Officer (AO) for framing a fresh assessment. Since the penalty proceedings were dependent upon the outcome of the quantum proceedings, the Tribunal held that the penalty issue could not be decided independently at that stage. Accordingly, in the interest of justice and with the consent of both parties, the Tribunal restored the penalty matter to the file of the AO for fresh adjudication after giving effect to the outcome of the quantum proceedings and after providing adequate opportunity of hearing to the assessee. The appeal was allowed for statistical purposes.
