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2019 (5) TMI 554 - HC - Income TaxCondonation of delay - delay of 8 days in filing the Appeal before the CIT (A) and 145 days in filing the Appeal before the Tribunal - Medical Ailments of the Assessee - disallowance of Cash Credit entries - HELD THAT - Both the Appellate Forums have failed to consider the case of the Assessee on merits and decide his Appeal with regard to the Cash Credit entries of which disallowance was made by the Assessing Authority. Assessee submitted before us that as against the demand of ₹ 7,27,210/-, a substantial amount viz., ₹ 4,75,000/- stands paid by the Assessee during the period from May 2010 to June 2018 as per the details furnished in the Memorandum of Appeal filed by the Assessee and even after filing of the present Appeal, further payments have been made and in total, around ₹ 7,00,000 has been paid. Therefore, we are of the opinion that the matter deserves to be remitted back to the Tribunal for deciding the Appeal on merits. Accordingly, we condone the delay in filing the said Appeal and we request the learned Tribunal to decide the Appeal on merits and in accordance with law within a period of 6 months from today
Issues:
1. Delay in filing the appeal before the Tribunal. 2. Justification for the delay based on medical ailments. 3. Failure of the Tribunal to consider the case on merits. 4. Amount paid by the Assessee against the demand. 5. Remitting the matter back to the Tribunal for deciding the appeal on merits. Analysis: 1. The Assessee, an individual working as a General Manager, filed an appeal under Section 260-A of the Income Tax Act against the order of the Income Tax Appellate Tribunal dismissing the petition as barred by limitation due to a delay of 145 days. The reasons for the delay were medical ailments, but the Tribunal found them insufficient as they lacked proper documentation. 2. The Tribunal's order highlighted that the Assessee's justification for the delay was based on an affidavit stating medical conditions like Hypertension and Rhemotoid Arthritis. However, the absence of a Doctor's Certificate and the short duration of hospital admission (3 days) led the Tribunal to dismiss the appeal as unadmitted, emphasizing the lack of valid proof for the delay. 3. The High Court noted that both the Commissioner of Income Tax and the Tribunal failed to consider the Assessee's case on merits regarding Cash Credit entries, leading to a delay of 8 days and 145 days in filing appeals. The Court opined that a sympathetic view should have been taken, and the appeal should have been decided on its merits, prompting the need to remit the matter back to the Tribunal for a proper consideration. 4. The Assessee's counsel informed the Court that a significant amount had been paid against the demand, totaling around ?7,00,000, with payments made even after filing the appeal. This fact was considered by the Court in deciding to remit the matter back to the Tribunal for a thorough examination of the case on its merits. 5. Consequently, the High Court condoned the delay in filing the appeal, directing the Tribunal to decide the appeal on merits within six months, providing a reasonable opportunity for the Assessee to present their case. The Assessee was instructed to appear before the Tribunal on a specified date, and the Tax Case Appeal was disposed of with no costs incurred, closing the connected miscellaneous petition.
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