SN Enviro Tech Private Limited vs Income Tax Officer

PER ANUBHAV SHARMA, JUDICIAL MEMBER:

This appealas well as stay application filed by the assesse under Section 254 of the I.T. Act, 1961 read with Rule 35A of the Income Tax (Appellate) Tribunal Rules, 1963 seeking stay of recovery of the outstanding demand of Rs.3,10,39,120/- for AY: 2023-24.

The appeal was taken up for hearing along with stay application as it was observed that impugned order had been passed by the First Appellate Authority whereby the appeal of the assesse has been dismissed as not maintainable being barred by limitation and we find that ld. First Appellate Authority has attributed a delay of 138 days.

In this context, we find from Form 35 assessee had pleaded that there is a delay of 138 days and it was asserted that the employees who was designated to handle the tax proceedings went on leave without bringing the facts to the knowledge of the management. The disallowance has been made merely on the lack of non-compliance of Section 194Q while assesse had already deducted TDS under the relevant provisions and the TDS amount deducted have been deposited but the same has not been considered in the assessment order.

In the light of aforesaid, at the time of hearing of the stay application the Bench was of the view that ends of justice will be served by restoring the issue to the files of ld. CIT(A) by condoning the delay. Ld. DR gracefully concedd to the view of the Bench.

Accordingly, the appeal is allowed for statistical purposes and the issue on merits as well as law are restored to the files of ld. CIT(A) to give fresh opportunity of hearing to the assesse on merits and pass order afresh after condoning the delay.

The stay application accordingly become infructous and dismissed.