Jap Agro Foods Pvt. Ltd. Vs DCIT (ITAT Ahmedabad)
ITAT Upholds 100% Penalty on Confirmed Additions Past-Loss Adjustment Irrelevant for 271(1)(c)- Substantial Justice for Delay, No Relief on Merits
This appeal was filed by Jap Agro Foods Pvt. Ltd., Vadodara, against the order of CIT(A), National Faceless Appeal Centre (NFAC), Delhi dated 13.10.2023 for AY 2011-12. The issue pertained to the confirmation of penalty imposed u/s 271(1)(c) of the Income-tax Act. The appeal was delayed by 603 days, & therefore, Assessee first sought condonation of the delay supported by an affidavit explaining the reasons for late filing.
Assesseeexplained that the delay occurred due to confusion arising from ongoing rectification proceedings before AO in connection with the earlier orders giving effect to Tribunal’s decision in the quantum appeal. The original appellate order of CIT(A) was passed on 13.10.2023 & the appeal period expired on 13.12.2023. However, AO subsequently passed an order giving effect u/s 250 on 07.12.2023, which contained certain mistakes. Later, a rectified order u/s 154 read with section 254 was passed on 24.02.2025 to correctly give effect to Tribunal’s quantum order. Assesseehad also filed another rectification application on 27.02.2025, believing that the final order would soon be issued. Under this bona fide belief that rectification proceedings were still ongoing & final figures were awaited, the appeal could not be filed within the prescribed time.
