Case Law Details
Ajay Kumar Vs Assessing Officer (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, condoned a delay of 333 days in filing an appeal for Assessment Year 2018-19 after considering the assessee’s condonation petition, affidavit, and medical records. The Tribunal observed that the delay was not intentional and appeared to be bona fide.
The case had been reopened under Section 147 of the Income Tax Act based on information received through the Insight Portal indicating Bitcoin transactions amounting to Rs.25,16,707. Since the assessee neither filed a return of income nor complied with notices issued under Sections 142(1) and 148, the Assessing Officer completed an ex parte assessment under Section 144 read with Section 147. The entire amount of Rs.25,16,710 was treated as short-term capital gain.
The assessee subsequently filed an appeal before the Commissioner of Income Tax (Appeals) with a delay of 250 days. The CIT(A) issued notice seeking explanation for condonation of delay, but no condonation petition or explanation was filed. Consequently, the appeal was dismissed in limine.
ITAT restored the matter to the CIT(A) and granted liberty to the assessee to file a condonation application supported by affidavit. The Tribunal directed the CIT(A) to consider the application in accordance with law and provide reasonable opportunity to the assessee before deciding the appeal. The impugned order was set aside and the appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT DELHI
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short ‘the CIT(A)’] dated 16.01.2025, for Assessment Year 2018-19.
2. The appeal is time barred by 333 days. The assessee has filed a petition for condonation of delay supported by affidavit and copy of medical records. After perusal of same, I am satisfied that delay in filing of appeal is not intentional, but is for the reasons stated in the condonation petition which appears to be bonafide. Hence, delay in filing of appeal is condoned and appeal is admitted for hearing on merits.
3. Brief facts of the case as emanating from records are: The case was reopened u/s.147 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) on the basis of information received through the Insight Portal indicating that the assessee had carried out Bitcoin transactions amounting to Rs.25,16,707/-. Since the assessee failed to file return of income and did not comply with various statutory notices issued u/s.142(1) and 148, the Assessing Officer (AO) completed the assessment ex-parte u/s.144 r.w.s. 147 of the Act determining total income at Rs.25,16,710/- by treating entire amount as short-term capital gain. The assessee filed appeal before the CIT(A) with a delay of 250 days. The CIT(A) issued notice calling for explanation for condonation of delay. However, the assessee neither filed any condonation petition nor furnished any explanation. The CIT(A) dismissed the appeal in limine as not admitted.
4. Shri Manoj Kumar, representing the department vehemently supported the impugned order and submitted that the assessee remained non-compliant throughout the proceedings.
5. Considering entire facts of the case, I deem it appropriate to restore the appeal to the CIT(A). liberty is granted to the assessee to file an application for condonation of delay supported by an affidavit before the CIT(A). Upon receipt of such application from assessee/appellant the CIT(A) shall considered the same keeping in view the law expounded by the Hon’ble Supreme Court of India in this regard. Before deciding the appeal, the CIT(A) shall allow reasonable opportunity of making submissions to the assessee, in accordance with law.
6. The assessee, upon service of notice by the CIT(A) shall respond to the same, without fail.
7. In the result, impugned order is set aside and appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on Monday the 13th day of April, 2026.
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