ITAT Bangalore Condoned 375-Day Delay And Restored Appeal on Rs 91.41 Lakh Addition Relating to Agricultural Income

The Income Tax Appellate Tribunal (ITAT) Bangalore held that medical complications arising from a renal transplant and kidney-related problems constituted sufficient cause for condoning the delay of 375 days.

The assessee had filed its return of income for assessment year 2017-18 declaring nil income. Subsequently, the case was selected for limited scrutiny under the Computer Assisted Scrutiny Selection (CASS) to examine the large agricultural income disclosed by the assessee. During the assessment proceedings, notices under Sections 143(2) and 142(1) of the Income-tax Act, 1961 were issued. In response, the assessee furnished details regarding various agricultural lands and stated that income had been derived from mango, coconut, sapota and eucalyptus trees. Assessee also produced details of sales of capsicum amounting to Rs 62.47 lakh.

However, the AO observed that the income claims of the assessee are not corroborated by evidence and consequently treated Rs 91.41 lakh as unexplained income. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(A) and since no response was furnished despite four opportunities granted, the appeal was dismissed.

Thereafter, the assessee approached the Tribunal with a delay of 375 days and pleaded that the delay had occurred due to medical complications relating to a renal transplant and kidney-related ailments. The Tribunal observed that the assessee had shown sufficient cause for the late filing of the appeal.

Accordingly, the appeal was partly allowed for statistical purposes. Accepting the explanation furnished by the assessee, the Bench condoned the delay of 375 days. The Tribunal further held that, in the interest of justice, the matter ought to be restored to the file of the CIT(A) for fresh adjudication after granting the assessee a reasonable opportunity of being heard.