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Judgment
PER VIMAL KUMAR, JM:
The application for condonation of delay of 111 days in filing appeal and appeal filed by the assessee is against the order dated 12.03.2025 of the Ld. Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), New Delhi (hereinafter referred to as “Ld. CIT(A)”), u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), arising out of assessment order dated 28.12.2022 of the Ld. Assessing Officer/Assessment Unit (hereinafter referred to as “Ld. AO”), u/s 143(3) of the Act for Assessment Year 2021-22.
Brief facts of the case are that, assessee filed return of income of Rs.1,49,30,770/- on 09.02.2022. The case was selected for scrutiny by CASS for the reason “Receipts u/s 194C (as per 26AS) and low net profit”. Notice u/s 143(2) dated 28.06.2022, notices u/s 142(1) dated 18.10.2022 and 15.11.2022 and show cause notices dated 08.12.2022, 17.12.2022 and 21.12.2022 were issued. Assessee made compliance of the above said notices.
On completion of proceedings, Ld. AO vide order dated 28.12.2022 made additions of Rs.10,01,42,143/- and Rs.13,94,006/-.
Against order dated 28.12.2022 of Ld. AO, the assessee filed appeal before Ld. CIT(A) which was partly allowed by the order dated 12.03.2025.
Being aggrieved, appellant-assessee preferred present application for condonation of delay of 111 days in filing appeal and appeal on following grounds of appeal:-
1)The Ld CIT(A) has erred in sustaining the order of the Ld AO as Ld AO has erred in law and on facts of the case in making following additions to the returned income of the assesse of 13,94,006/- on account of interest on refund, Inspite of the fact no such refund has been credited / given to the assesse at any point of time and even no intimation u/s 143(1) has been issued calculating amount of refund and interest thereon
2)The Ld CIT(A) has erred in sustaining the order of the Ld AO as Ld AO has erred in law and on facts of the case as none of the replies / submissions made by the assesse and other material available on record have been considered while framing the assessment order and additions have been made. Inspite of the fact no such refund has been credited / given to the assesse at any point of time and even no intimation u/s 143(1) has been issued calculating amount of refund and interest thereon
3)The Ld CIT(A) has erred in sustaining the order of the Ld AO as the Assessment order of the Ld Assessing Officer is bad in law and facts as it is prejudicial to the interests of the appellant due to lack of principles of natural justice or violation of principles of natural justice, as no evidence has been provided at any point of time that refund has been issued and interest u/s 244A has been calculated thereon
4)That the Appellant prays for the grant of permission to add, alter, delete, modify, any or all of the grounds of appeal at any time on or before or during the time of hearing before the Hon'ble ITAT.
Ld. Authorized Representative for appellant-assessee submitted that, there is delay of 111 days in filing appeal due to non-receipt of intimation by the professional and lack of knowledge. The explanation for delay of 111 days in filing appeal does not smack of mala fides as appellant has not gained anything by not filing appeal within period of limitation. Therefore, delay of 111 days in filing appeal is condoned.
Ld. Authorized Representative for appellant-assessee submitted that, Ld. CIT(A) erred in sustaining order by Ld. AO making addition of Rs.13,94,006/- on account of interest on refund. Inspite, of the fact that no such refund was credited to the assessee at any point of time and no intimation u/s 143(1) was issued calculating amount of refund and interest thereon. The order of Ld. AO, was violative of principle of natural justice as no evidence was ever provided to the assessee that refund has been issued and interest u/s 244A was calculated. The matter may be restored to the file of Ld. AO. No refund has been credited to any bank account, which even has been admitted by Ld AO. No intimation/letter from Ld. AO has been received that refund including interest for AY 2019-20 has been adjusted against which outstanding demand for which year. No refund has been determined even till 17-12-2025, as per Screen Shots of designated ITBA Portal are being submitted, evidencing that:
Neither refund viz-a-viz interest thereon u/s 244A has been determined
Nor it has been credited or adjusted against any outstanding demand
Relevant Screen Shots of ITBA Portal are attached with
| Sr. No. | Particulars | Page No. |
| 1 | FOR AY 2019-20 > Screenshot taken on 17-12-2025 of ITBA Portal wrt to Status of Income Tax Refund: -----------=No Records Found, Please check your e-filing processing status by navigating through e-file->Income Tax Returns ->View Filled Returns | 4 |
| 2 | FOR AY 2019-20 => Screenshot taken on 17-12-2025 of ITBA Portal wrt to processing of ITR stating: -----------=REFUND is kept on hold as Taxpayer's response and/or JAO's response is awaited as per the communication under S.245 on proposed adjustment of refund against outstanding demand(s) [May 9, 2020] | 5 |
| 3 | FOR AY 2019-20 => Screenshot taken on 26-08-2025 of ITBA Portal wrt to Status of Income Tax Refund: ------------=No Records Found, Please check your e-filing processing status by navigating through e-file->Income Tax Returns ->View Filled Returns | 6 |
| 4 | FOR AY 2019-20 => Screenshot taken on 26-08-2025 of ITBA Portal wrt to processing of ITR stating: ------------=REFUND is kept on hold as Taxpayer's response and/or JAO's response is awaited as per the communication under S.245 on proposed adjustment of refund against outstanding demand(s) [May 9, 2020] | 7 |
| 5 | FOR AY 2024-25 => Screenshot taken on 18-12-2025 of ITBA Portal wrt to Status of Income Tax Refund: [For Sample Purpose Only] -----------=Refund has been processed by Refund Banker (SBI) on 21-02-2025... | 8 |
| 6 | FOR AY 2024-25 => Screenshot taken on 18-12-2025 of ITBA Portal wrt to processing of ITR stating: -For Sample Purpose Only] -------------=Refund has been credited on Feb 24, 2025, after showing status of refund has been kept on hold........ | 9 |
| 7 | FOR AY 2023-24 => Screenshot taken on 18-12-2025 of ITBA Portal wrt to Status of Income Tax Refund: -For Sample Purpose Only] -------------=Refund has been processed by Refund Banker (SBI) on 29-01-2024.......... | 10 |
| 8 | FOR AY 2023-245> Screenshot taken on 18-12-2025 of ITBA Portal wrt to processing of ITR stating: -[For Sample Purpose Only] --------------=Refund has been credited on Jan 29, 2024, after showing status of refund has been kept on hold........ | 11 |
| 9 | ITR Ack for AY 2019-20, showing amount of Rs 196,40,648/-has been claimed as Refund | 12 |
| 10 | ITR Ack for AY 2021-22 for the year under consideration | 13 |
Ld. Departmental Representative, had no objection to the submissions of Ld. Authorized Representative for assessee.
From examination of record, in light of aforesaid rival submissions, it is crystal clear that, Ld. CIT(A) vide order dated 12.03.2025 partly allowed appeal of the assessee. The addition of Rs.10,01,42,153/- was deleted and addition of Rs.13,94,006/- was upheld.
Ld. CIT(A) failed to notice the fact that no refund had been credited or given to assessee at no point of time. Appellant has requested for restoration of the matter to the file of Ld. AO. Ld. Departmental Representative has no objection.
In view of above the material facts, the order of Ld. CIT(A) regarding upholding of addition of Rs.13,94,006/- by Ld. AO is set aside and the matter is restored to the file of Ld. AO for fresh decision in accordance with law after affording fair opportunity of hearing to the assessee.
In the result, the application for condonation of delay of 111 days is allowed and appeal of the assessee is allowed for statistical purposes.