SUMAN DEVI,FATEHABAD vs. ITO WARD-1, FATEHABAD, FATEHABAD

The record reveals that the Ld. CIT(A) issued various notices fixing the appeal for hearing. Since no compliance was made by the assessee, the Ld. CIT(A) proceeded to decide the appeal ex parte on the basis of the assessment records and confirmed the addition of ₹1,67,96,000/- holding that the assessee had failed to substantiate her claim either before the Assessing Officer or during the appellate proceedings. Consequently, the appeal of the assessee was dismissed.

There is a delay of 338 days in filing the present appeals before the Tribunal. The assessee has filed an affidavit explaining the reasons for the delay, inter alia stating that the appellate order dated 12.03.2025 was sent to the e-mail address of the former Chartered Accountant and was not received by the assessee. It has further been stated that the assessee's husband remained in judicial custody from 17.03.2019 to 13.04.2023, due to which the income-tax proceedings could not be properly

After considering the affidavit and the explanation furnished therein, we are satisfied that the assessee has shown sufficient cause for not filing the appeals within the prescribed period. Accordingly, the delay of 338 days in filing the present appeals is condoned and the appeals are admitted for adjudication.

The Ld. Authorised Representative submitted that the impugned orders passed by the Ld. CIT(A) are purely ex parte order without granting an effective opportunity of hearing. It was contended that the assessee could not appear before the appellate authority due to bona fide reasons, which have also resulted in the delay in filing the present appeala before the Tribunal. It was further submitted that the assessee possesses documentary evidence to explain the source of investment in the immovable properties and seeks one effective opportunity to place the entire material before the first appellate authority. The Ld. AR, therefore, prayed that the impugned orders may be set aside and the matters restored to the file of the Ld. CIT(A) for adjudication afresh on merits.

We have heard the rival submissions and carefully perused the material available on record. It is an admitted position that the impugned orders have been passed ex parte. Though several notices were issued by the Ld. CIT(A), the appeals ultimately came to be decided without the benefit of the assessee's submissions or supporting documentary evidence. The right of appeal is a valuable statutory right and ordinarily an assessee should not be denied an effective opportunity of being heard, particularly where the first appellate authority is expected to adjudicate the issues on facts as well as law.

The affidavits filed by the assessee explaining the delay in filing the appeal before the Tribunal appear to disclose bona fide reasons, and we have already condoned the delay. In the larger interest of substantial justice and having regard to the facts and circumstances of the case, we are of the considered opinion that one final opportunity deserves to be granted to the assessee to substantiate her claim before the first appellate

However, at the same time, the conduct of the assessee in not effectively pursuing the appellate proceedings before the Ld. CIT(A) and in approaching the Tribunal after considerable delay cannot be ignored. Such conduct has resulted in avoidable litigation and wastage of judicial time. Therefore, while restoring the matter, it would be appropriate to compensate for the inconvenience caused to the judicial process by imposing a reasonable cost.

Accordingly, we set aside the impugned orders of the Ld. CIT(A) and restore the matters to his file with a direction to adjudicate the appeals afresh in accordance with law after affording adequate and effective opportunity of hearing to the assessee. The restoration shall, however, be subject to the condition that the assessee shall deposit cost of ₹5,000/- in each case, with the Poor Relief Fund of PGIMER, Chandigarh, within 30 days from the receipt of this order and shall produce the receipt of such deposit before the Ld. CIT(A) at the time of hearing.

The assessee shall extend full cooperation and shall file all necessary evidences and written submissions within the time granted by the Ld. CIT(A). In the event of failure on the part of

In the result, the appeals of the assessee are allowed for statistical purposes in the above terms.