The assessee company preferred an appeal against the order passed by the Commissioner of Income Tax (Appeals)-50, Mumbai, for Assessment Year 2009–10. At the outset, the Tribunal noted a delay of 60 days in filing the appeal. After considering the affidavit and submissions of both parties, the Tribunal found that there was reasonable cause for the delay and accordingly condoned the same.

The assessment in the present case was completed under section 143(3) read with section 147 of the Income-tax Act, 1961, wherein the Assessing Officer made an addition of ₹66,43,847 on account of alleged bogus losses claimed by the assessee, purportedly arising from client code modification transactions. Aggrieved, the assessee carried the matter in appeal before the Commissioner (Appeals).

However, the appeal before the Commissioner (Appeals) came to be dismissed on the ground of non-prosecution, without adjudication on merits. During the hearing before the Tribunal, the assessee submitted that due to the demise of the Director of the company, effective representation could not be made before the Commissioner (Appeals). It was therefore pleaded that one more opportunity be granted and the matter be restored for fresh consideration.

The Departmental Representative did not raise any specific objection to the matter being set aside to the file of the Commissioner (Appeals). After considering the limited prayer made by the assessee and the overall facts on record, the Tribunal observed that the interests of justice would be served by granting another opportunity.

Accordingly, the Tribunal set aside the impugned order passed by the Commissioner (Appeals) and restored the matter to his file for adjudication afresh, after providing reasonable opportunity of being heard to the assessee. The appeal was thus allowed for statistical purposes.

Source Link- https://itat.gov.in/public/files/upload/1768281092-NFdVcj-1-TO.pdf

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