VENKATESHWARI ANDHAN,KARUR vs. ITO, WARD-1, KARUR

At the threshold, we observe that there is a delay of 69 days in the filing of the present appeal by the assessee. The assessee has furnished an affidavit explaining that the assessee is not digitally proficient and lacks the necessary computer skills to monitor the e-filing portal independently. Consequently, the hearing notices issued by the ld.CIT(A) went unnoticed. Furthermore, the local income tax practitioner previously handling the matter became completely unresponsive and failed to communicate the status of the proceedings to the assessee. Upon perusal of the affidavit and after affording due opportunity of hearing from both parties, we are satisfied that the assessee has demonstrated sufficient and reasonable cause for not presenting the appeal within the statutory period prescribed under law. Accordingly, in the interest of justice, the delay in filing the appeal is hereby condoned, and the appeal is admitted for adjudication on merits.

Brief facts of the case are that the assessee is an individual, engaged in the specialized business of bus body building and allied services and did not file her return of income for the AY 2020-21. As per information available with the department, the AO found that the assessee has made financial transactions to the tune of Rs.239.49 lakhs as total sales reported under GSTR- 3B and TDS Statement – Payments to contractors (Section 194C) amounting to Rs.12.81 lakhs. The case was re-opened u/s.147 of the Act, accordingly, a notice u/s.148 of the Act dated 29.02.2024 and further statutory notices were issued to the assessee and calling for details. In response, the assessee has filed her return of income on 21.11.2024 for A.Y 2020-21, admitting total income of Rs.4,55,990/- and the AO had rejected the return of income filed by the assessee as the same was not filed on time. On perusal of the documents submitted by the assessee, the AO completed the assessment by passing an exparte order u/s.147 r.w.s 144 r.w.s 144B of the Act dated 07.02.2025 by making an addition of Rs.20,47,678/- as undisclosed profit from business and by arriving total income of Rs. 20,47,678/-.

At the outset, we observed that ld.CIT(A) has provided four opportunities for the assessee to appear for hearings as detailed in paragraph 5 of the ld.CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld.CIT(A) passed an order dated 16.01.2026 by confirming the order of the AO. Aggrieved by the order of the Ld.CIT(A), the assessee is in appeal before us.

The ld.AR of the assessee submitted that the assessee is not digitally proficient and lacks the necessary computer skills to monitor the e-filing portal independently. The assessee was unaware of the hearing notices and impugned order passed by the ld.CIT(A) during the relevant period due to the local income tax practitioner failed to communicate the status of the proceedings to the assessee and hence, the assessee could not participate in the appellate proceedings before the first appellate authority. Therefore, the ld.AR prayed that the Tribunal may be pleased to set aside the order of ld.CIT(A) and remit the issues to the file of AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.

Per contra, the ld.DR submitted that both the AO and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).

We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an exparte order by considering the information available with

Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh on merits in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.

In the result, appeal filed by the assessee is allowed for statistical purposes.