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Facts
The assessee filed a return of income which was selected for scrutiny. Despite various notices, the assessee failed to comply, leading to an addition by the AO. The CIT(A) dismissed the appeal ex parte. The assessee's legal heirs sought condonation of delay due to lack of knowledge after the assessee's death.
Held
The Tribunal condoned the delay of 93 days in filing the appeal, acknowledging the lack of knowledge on the part of the legal heirs due to the assessee's death. The order of the Ld.CIT(A) was set aside, and the matter was restored to the CIT(A) for fresh decision.
Key Issues
Whether the delay in filing the appeal should be condoned due to the death of the assessee and lack of knowledge of the legal heirs, and whether the matter should be restored to the CIT(A) for a fresh decision.
Sections Cited
250, 1961, 143(3), 143(2), 142(1), 131
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “C”: NEW DELHI
Before: SHRI S RIFAUR RAHMAN & SHRI VIMAL KUMAR
Assessee by: Shri Priyansh Jain, CA Department by: Shri Om Prakash, Sr. DR Date of Hearing: 05.06.2025 Date of pronouncement: 05.06.2025 O R D E R
PER VIMAL KUMAR, JUDICIAL MEMBER:
The appeal by appellant/assessee is against order dated 02.08.2024 of Learned Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi (hereinafter refereed as “the Ld.CIT(A)”) under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of order dated 25.12.2019 of the Income Tax Officer Ward-23(3), Delhi (hereinafter referred as “Ld. AO”) under Section 143(3) of the Act for assessment year 2017-18.
Brief facts of case are that assessee filed return of income on 01.11.2017 declaring income of Rs.7,73,900/-. The case was selected for scrutiny assessment through CASS. Notice under Section 143(2) of the Act dated 13.08.2018 and 07.09.2019 were issued. Notices under Section 142(1) of the Act were issued on 07.05.2019 and 10.06.2019 which remained uncomplied with. Show cause notice dated 01.07.2019 also issued remained uncomplied with. Notices under Section 142(1) of the Act dated 13.08.2019 and 17.09.2019 also remained uncomplied with. Summon under Section 131 of the Act dated 30.10.2019 was issued. Assessee made compliance on 27.11.2019 and filed details on 07.05.2019. On completion of proceedings, Ld. AO vide order dated 25.12.2019 made addition of Rs.45,00,000/-. Against order dated 25.12.2019, appellant/assessee preferred appeal before the Ld.CIT(A) which was dismissed vide order dated 02.08.2024.
Being aggrieved, appellant/assessee preferred application for condonation of delay of 93 days and present appeal.
Learned Authorised Representative for Appellant/assessee submitted that after death of assessee Smt. Shobha Verma on 24.11.2020, her sons were not aware of the departmental proceedings under Income Tax Act, 1961. Delay of 93 days in filing appeal is due to lack of direct knowledge of appellate proceedings and impugned order.
Learned Authorized Representative for the Department of Revenue submitted that Smt. Shobha Verma, assessee, failed to appear in appellate proceedings despite several notices.
From examination of record in the light of aforesaid rival contentions, it is crystal clear that there is a delay of 93 days in filing appeal due to lack of knowledge of appellate proceedings. Explanation does not smack of mala fides as appellant has not gained anything by not filing appeal within the limitation period. Therefore, delay of 93 days in filing the appeal is condoned.
Assessee, Smt. Shobha Verma failed to appear in appellate proceedings despite several notices. So, Ld.CIT(A) dismissed the appeal ex parte. Assessee Smt.Shobha Verma died on 24.11.2020. Legal Heirs of assessee Smt. Shobha Verma request for restoration file to Ld. CIT(A). In view of above material facts, in the interest of justice, it is expedient to set aside the order of Ld.CIT(A) and restore the matter to the file of Ld.CIT(A) for fresh decision in accordance with law after affording fair opportunity of hearing to legal heirs of assessee.