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Facts
The assessee's appeal was dismissed in limine by the CIT(A) due to alleged delay in filing. The assessee claimed they were unaware of assessment proceedings and the appeal was filed within the limitation period from the date of knowledge of the order. The CIT(A) dismissed the appeal ex-parte without affording an opportunity to be heard.
Held
The Tribunal held that the dismissal of the appeal by the CIT(A) in ex-parte proceedings without affording a reasonable opportunity to the assessee violated principles of natural justice. The Tribunal found merit in the assessee's submissions regarding the delay and the timing of the appeal.
Key Issues
Whether the CIT(A) correctly dismissed the appeal in limine on grounds of limitation without affording natural justice to the assessee, and if the assessment proceedings were initiated without proper notice.
Sections Cited
147, 148, 142(1), 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2015-16) Ganesh Prasad Karna, A 301, Homes-121, Sector 121, Gautam Budh Nagar, Noida 201301, Uttar Pradesh ...... अपीलाथ�/Appellant PAN: ABCPK-2378-N बनाम Vs. Assessing Officer, National Faceless Assessment Centre, Circle 5(1)(1), Sector 24, Gautam Budh Nagar, .... �ितवादी/Respondent Noida, Uttar Pradesh अपीलाथ� �ारा/ Appellant by : S/Shri M.P Rastogi & P N Shastri, Chartered Accountants �ितवादी�ारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 22/05/2025 घोषणा क� ितिथ/ Date of pronouncement : : 22/05/2025 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 06.01.2025, for assessment year 2015-16.
The ld. Counsel for the assessee submits that the appeal of assessee was dismissed in limine by the CIT(A) on ground of delay in filing of appeal. He submitted that as per assessee there is no delay in filing of appeal. The assessment order dated 24.03.2022 was received by the assessee on 07.09.2022. The assessee filed appeal within the period of limitation from the date of knowledge of (AY 2015-16) assessment order. The CIT(A) in ex-parte proceedings, without affording opportunity of making submissions to the assessee dismissed appeal on the ground of limitation. He further submitted that the assessee was unaware of assessment proceedings u/s. 147 of the Act. As no notice u/s. 148 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) or any subsequent notice was ever served on the assessee. It was only when recovery proceedings were initiated and a phone call was received from the office of Assessing Officer (AO), the assessee came know about the assessment order dated 24.03.2022 passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act.
Per contra, Shri Manoj Kumar, representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR pointed that notice u/s. 142(1) of the Act was sent to the assessee by the Departmental Verification Unit (DVU) through speed post. Therefore, the assesse was aware of the assessment proceedings but failed to respond to the same.
Both sides heard, orders of the authorities below examined. The AO had purportedly issued notice u/s. 148 of the Act dated 30.03.2021 and was served through ITBA portal. However, it is not emanating from the assessment order, whether the said notice was ever served on the assessee. Further, the AO in assessment order has mentioned that notices u/s. 142(1) of the Act were issued to the assessee on 15.12.2021 and 18.01.2022 were served by DVU through speed post but there was no response from the assessee. The AO invoked the provisions of section 144 of the Act and passed the assessment order. Against the said assessment order, the assessee filed appeal before the CIT(A). The appeal was time barred by 149 days. The CIT(A) dismissed the appeal in limine on the ground of limitation. The ld. Counsel pointed that no notice was ever served on the assessee (AY 2015-16) by the CIT(A) to explain the alleged delay in filing of appeal although according to the assessee there was no delay in filing of appeal. A perusal of impugned order shows that the appeal is dismissed in ex-parte proceedings without affording reasonable opportunity of making submissions to the assessee/appellant. It is gross violation of principles of natural justice. The assessee has explained the reason for alleged delay in filing of appeal, albeit as per assessee the appeal is within limitation as the appeal was filed within 60 days from the date of knowledge of order. I find merit in submissions of the assessee. Nevertheless, the Hon’ble Supreme Court of India has time and again held that acceptance of explanation should be the rule and refusal an exception, especially when no inaction or want of bonafide is imputed to the appellant.
Taking into consideration entire facts of the case, I restore this appeal back to the AO for denovo assessment. The AO shall issue notice to the assessee on email address mentioned in Form No. 36, i.e. “gpkarna@gmail.com”. The AO before passing fresh assessment order shall grant reasonable opportunity of making submissions to the assessee, in accordance with law.
The assessee is directed to respond to the notice(s) issue by the AO, without fail.