The Income Tax Appellate Tribunal (ITAT), Chennai bench has held that the delay in filing appeal due to liquidation process pending before various forums and Courts would amount to “reasonable cause” for delay in filing income tax appeal.
The assessee, M/s. Integrated Finance Company filed its return of income for the assessment year 2006-07 on 09.12.2006 declaring loss and the same was accepted under section 143(1) of the Income Tax Act, 1961. Subsequently, the case was selected for scrutiny and notice under section 143(2) of the Act was issued and duly served on the assessee. After considering the submissions of the assessee as well as materials available on record, the Assessing Officer has completed the assessment after making various disallowances/additions. On appeal, the ld. CIT(A) confirmed the assessment order and disallowed the appeal of the assessee primarily on the ground of delay in filing appeal.
The assessee contended before the Tribunal that the assessee company, being under liquidation, was under strenuous pressure of running behind the Hon’ble High Court and public depositors as well as bond holders for consolidation and recover the dues with lack of sufficient staff and thereby could not put appearance before the CIT(A) and prayed for one more opportunity of being heard to the assessee to substantiate its claim before the CIT(A).
A bench of Shri V. Durga Rao, Judicial Member & Shri Manoj Kumar Aggarwal, Accountant Member observed that the assessee has not availed the opportunity of being heard accorded by the ld. CIT(A) on 23.05.2017, 16.06.2017, 16.08.2017, 15.09.2017, 08.11.2017 and 22.11.2017.
“We have also considered the detailed submissions made by the ld. Counsel. Taking into consideration of the entire facts and circumstance of the case, we are of the considered opinion that in order to meet the ends of natural justice, that to, the assessee is under liquidation, one more opportunity should be afforded to the assessee to substantiate its case before the ld. CIT(A). Accordingly, we remit the entire issues to the file of the ld. CIT(A) for fresh adjudication after considering the materials/explanation as may be submitted by the assessee. The assessee is also strictly directed to submit its case with proper materials/ convincing explanation before the ld. CIT(A) for concluding the appellate order,” the Tribunal said.
Shri R. Vijayaraghavan, Advocate appeared for the assessee.
Komentar