Substantial justice prevails over technicalities; delay in filing an appeal can be condoned if sufficient cause is shown.

ORDER

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of assessee is directed against the order of ld. Addl/JCIT(A), Jodhpur dated 08.11.2024 vide DIN & Order No. ITBA/APL/S/250/2024-25/1070213328(1) passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”) for the assessment year 2022-23. The assessee has raised the following grounds of appeal:

2. Brief facts of the case are that the assessee firm filed its Return of income for the Asst. year 2022-23 on 26.9.2022 by declaring total income of Rs.35,59,589/- and the tax payable thereon amounting to Rs.11,05,295/- were covered by way of total TDS/TCS amounting to Rs.11,34,672/- and accordingly the assessee claimed refund of Rs.29,380/- along with Interest U/s 244A thereon. Thereafter, while passing the intimation u/s 143(1) of the Act on 17.2.2023, the ld. Deputy Director of Income Tax, CPC, Bengaluru although accepted the total income of Rs.35,59,590/- as declared by the assessee in its return of Income but reduced the TDS to Rs.1,58,111/- from Rs.11, 18,382/- of total TDS as claimed in the return and thereby raised the total demand of Rs.10,80,290/- by disallowing total TDS credit of Rs.9,60,271/-

3. Aggrieved by the aforesaid Intimation passed u/s 143(1) of the Act dated 17/02/2023, the assessee preferred an appeal before the CIT(A)/NFAC belatedly along with the petition for condoning the delay in filing appeal.

4. The ld. Addl/JCIT(A) dismissed the appeal of the assessee in limine by holding that the assessee’s appeal is not maintainable as the same is filed beyond the time limit permitted u/s 249 of the Act for filing of appeal and there is no sufficient cause for delay in filing of appeal, which can be condoned and accordingly dismissed the appeal u/s 250 r.w.s. 251 of the Act without considering the merits of the appeal.

5. Again, being aggrieved by the Order of the ld. Addl/JCIT(A), the assessee has filed the present appeal before this Tribunal. The assessee has also filed two paper books comprised of 47 pages.

6. Before us, the ld. A.R. for the assessee vehemently submitted that the ld. Addl/JCIT(A) grossly erred in not condoning the delay in filing the appeal before him as there was sufficient cause in filing the appeal belatedly. The ld. AR of the assessee further submitted that since the income declared in the return was accepted by the CPC & the demand was raised by not allowing the TDS credit which was also reflecting in Form 26AS & accordingly the assessee sought for rectification of mistake as per the provision contained in section 154 of the Act. The assessee was under an honest & bonafide belief that the outcome of the rectification would address the discrepancies & prima facie there is no need to file appeal for the mistakes which were apparent on the face of the record which resulted in delay filing of appeal. On merits the ld. AR of the assessee submitted that the Gross receipts reflected in Form 26AS on which TDS credit was claimed in the Return of Income are higher than the total receipts declared in the Return as the assessee is a commission agent selling goods on behalf of agriculturists. Further, the AR of the assessee submitted that the purchasers have made TDS U/s 194Q by treating the assessee firm as seller of goods whereas the assessee being an commission agent sold the goods on behalf of principal agriculturists and the assessee firm has declared entire commission & Interest as income in its Return of Income. Lastly ld. AR requested to remit back the file to the ld. Addl/JCIT(A) for fresh consideration as the ld. Addl/JCIT(A) has not adjudicated the case on merits by condoning the delay.

7. Per contra, ld. DR submitted that the ld. Addl/JCIT(A) rightly dismissed the assessee’s appeal in limine without condoning the delay in filing the appeal as the delay was substantial without being the sufficient cause for Delay. The delay was only due to the negligence of the assessee firm.

8. We have heard the rival submissions & perused the materia