ITAT condones 4 Years delay in filing Rectification Application under Section 154
Facts and Issue of the case
This is an appeal filed by the assessee directed against the order of the National Faceless Appeal Centre, Delhi (hereinafter called as ‘NFAC’) dated 23.08.2021 for the Assessment year 2011-12.
The assessee raised the following grounds of appeal:-
- That on the facts and in the circumstances of the case, the learned CIT-Appeals, has erred in law and fact in confirming the addition of Rs. 7,22,991.00 instead of deleting fully, as assessee is having agriculture income and no any business income, therefore treating business income without any basis is wrong and unjustified, the impugned order is bad in law and facts.
- That Appellant crave leaves to add, amend or alter all or any of the grounds of Appeals on or before the date of hearing.
The brief facts of the case are that the assessee is engaged in agriculture produce and the same was sold during the year under consideration. However, the AO has not treated it as agriculture income and made addition of Rs. 7,22,991/-. The relevant observation of the A.O. in not considering the submissions of the assessee as to addition of Rs. 7,22,991/- under the head agriculture income after 4 years.
Being aggrieved by the impugned order issued U/s 154 of the IT Act, the assessee preferred an appeal before the ld. CIT(A). Being aggrieved by the order passed U/s 154 of the IT Act by the CIT(A), the assessee preferred an appeal before us. The Ld AR for the assesee has filed a Written Submission along with Paper Book furnishing the details pertaining to delay in filing of application U/s 154 of the IT Act.
At the time of arguments, the ld. AR of the assessee has filed a detailed written submissions praying therein to delete the addition of Rs. 7,22,991/- as confirmed by the ld. CIT(A). Before us, the assessee, the Director of the company himself argued before us and produced the evidence for delay in filing the application U/s 154 of the IT Act, we have perused the paper book, the ld AR for the assesee has produced all medical records from pages 32 to 56 of the paper book moreover the ld. AR for assessee produced for the first time additional evidences relating to balance sheet, sale bills etc before us.
On the other hand, the ld. DR supported the orders of the lower authorities.
Observation of the Court
Court has considered the rival submissions and perused the material available on record. The Bench observed that the assessee is engaged in agriculture produce and the same was sold during the year under consideration. However the AO has not treated as agriculture income. The assessee has filed application under Section 154 of the Act on 10.01.2019 mentioning therein that the assessee company has shown income of Rs. 7,22,991/- which is exempt from tax. The prayer of the assessee is that application filed by the assessee under section 154 of the Act was not properly disposed off without providing adequate opportunity to the assessee. In the interest of equity and justice, the appeal of the assessee is remand to the file of the CIT (A) to decide it afresh by providing adequate opportunity of hearing to the assessee. We don’t have any hesitation to condone the delay of 4 years for filing the application under section 154 of the IT Act due to reasonable cause and genuine in nature and we consider accordingly, it is a fit case for remand for proper adjudication of the case by following the established procedure laid down. under rules 46A(1),(2) and (3) of the Rules which we order accordingly. The impugned order passed by the Lower authority is hereby quashed and set aside. The appeal is remanded to the Commissioner of Income-tax ,who shall make an endeavour to dispose of the entire appeal in accordance with law as indicated above as expeditiously as possible, The assessee is also directed to produce relevant additional evidences concerning the issue in question, where additional evidence in form of segmental audited results have been admitted which needs to be verified and examined by the Revenue authorities and in any case within a period of three months from the date of pronouncement of this order before him.
In the result, the appeal of the assessee was allowed by the court for statistical purposes.ITAT-condones-4-Years-delay-in-filing-Rectification-Application-under-Section-154