Powers of ld. Commissioner as per the expression “sufficient cause” employed u/s 249(3) of the Income Tax Act

IN THE INCOME TAX APPELLATE TRIBUNAL
“SMC” BENCH, AHMEDABAD
(Conducted through Virtual Court)
BEFORE SHRI RAJPAL YADAV, VICE-PRESIDENT
AND
SHRI WASEEM AHMED, ACCOUNTANT MEMBER
ITA No.692/Ahd/2019
Asstt.Year : 2015-16

Dharmeshkumar R. Trivedi
12, Panchvati Society
Panchwati Second Lane
Ambawadi, Ahmedabad.
PAN : ADQPT 4177 J

vs

ITO, Ward-5(2)(3)
Ahmedabad.

Assessee by : Shri Mehul K. Patel, AR
Revenue by : Shri Kamlesh Makwana, Sr.DR

Date of Hearing : 11/11/2021

Date of Pronouncement : 01/12/2021

O R D E R

In the appeal memo, the assessee has raised two grounds of appeal against order of the ld.CIT(A). In the first ground of appeal, grievance of the assessee is that the ld.CIT(A) has erred in not
condoning the delay in filing appeal without appreciating genuine reasons given by the assessee at the time of appellate proceedings.

2. 143(1) of the Act and thereafter picked up for scrutiny assessment by issuance of notice under section 143(2) of the Act. However, assessee failed to comply with the notice and failed furnish details sought for by the AO. Accordingly, the ld.AO finalized assessment proceedings under section 144 of the Act and assessed the income by making addition of Rs.11,62,000/-. This order was challenged before first appellate authority by filing appeal, which, according to the ld.CIT(A) was late by two months.

3. With the assistance of the ld.representatives, we have gone through the record carefully. We find that the assessee has filed appeal before first appellate authority which was late by two months.
Before us, assessee has filed copy the condonation petition, in which, the assessee has explained the reasons for delay. We are of the view that on seeing quantum of delay being two months days, and the
reasons explained by the assessee, the ld.CIT(A) ought to have taken a lenient view in condoning the delay and considered the case of the assessee on merit. We find that expression “sufficient cause”
employed in sub-section 3 of section 249 of Income Tax Act provides powers to the ld.Commissioner to condone the delay in filing the  appeal before the Commissioner if he is satisfied that the appellant had sufficient cause for not presenting it within that period. We are of the view that the reasons explained by the assessee before the ld.CIT(A) are sufficient enough to condone the impugned delay, and decide the appeal on merit. Though the assessee has given reasons for delay in his petition for condonation of delay, ld.CIT(A) has not appreciated the same in right perspective and not justified in not condoning the delay and dismissing the appeal in limline.

4. In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the Court on 1st December, 2021 at Ahmedabad.

Please find attached the enclosed file for the full judgement.