INCOME TAX ACT, 1961

Section 250(6)

Appeal [CIT(A)] - Ex-parte order - Assessee could not electronically file appeal as per CBDT Circular No. 20/2016, dated 26-5-2016 -

Assessee had claimed huge expenditure from such income and in absence of registration under section 12A was treated as normal AOP and is taxed at maximum rate. Income of assessee was considered to be only from 'Income from other Sources' and expenditure relatable to earning of such income were only allowed as deductions. AO held that assessee was not entitled/eligible for deduction/expenses as they were not relatable to the income. Further, assessee had received voluntary contributions in the name of various funds. Therefore, voluntary contributions were received in the name of various funds and same was considered as the corpus donation by the assessee and was directly taken in the balance sheet considering it to be exempt income under section 11(1)(d) was added to the total income of the assessee. Assessee preferred first statutory appeal before CIT(A) but could not file electronically appeal as per CBDT Circular No. 20/2016, dated 26-5-2016. Therefore, CIT(A) did not accept before appeal and same was dismissed as non-est and not entertained. Held: In this case, CIT(A) dismissed the appeal because assessee could not file its appeal electronically and appeal was dismissed as non-est and on merit appeal of assessee was not heard. Assessee should have been given a chance to rectify his omission for filing physical appeal instead of e-appeal and CIT(A) should have decided the matter on merit, instead of dismissing assessee's appeal. In interest of justice, assessee shall file e-appeal before CIT(A) and intervening period of delay was condoned and CIT(A) was directed to decide assessee's appeal on merit.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2013-14

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