KANDASAMY UMAPATHY,MANNARGUDI vs. ITO, WARD-2,, THIRUVARUR

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 29.12.2023 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2012-13.

ITA No.2490/CHNY/2026 - 2 - Kandasamy Umapathy 2. There is a delay of 790 days in filing this appeal. The assessee has filed an affidavit seeking condonation of delay explaining therein the reasons for the delay. The reason stated is that, the delay of 790 days in filing the present appeal occurred because the order passed by the First Appellate Authority (FAA) dated 21.08.2023 was not communicated to the assessee by the authorised representative who had been handling the appellate proceedings. It was submitted that the assessee had made a bona fide attempt to settle the dispute under the Vivad Se Vishwas Scheme. However, due to severe financial hardship arising from the COVID-19 pandemic, which had seriously affected the operations of the assessee's play school catering to children below five years of age, the assessee was unable to comply with the payment requirements under the Scheme, resulting in the failure of the application. It was further submitted that the assessee came to know about the dismissal of the appeal by the FAA only during the second week of March 2026, when the Demand Management Team of CPC, Bengaluru informed her about the appellate order while she was enquiring regarding the status of the appeal. Immediately thereafter, the assessee contacted another authorised representative, collected the necessary records and filed the present appeal before the Tribunal on 29.04.2026. It was therefore

ITA No.2490/CHNY/2026 - 3 - Kandasamy Umapathy contended that the delay was occasioned due to non- communication of the appellate order by the earlier authorised representative, the unsuccessful attempt to resolve the dispute under the Vivad Se Vishwas Scheme owing to financial hardship during the COVID-19 period. On perusal of the reasons stated, we are of the view that no latches can be attributed to the assessee as there is sufficient cause for belated filing of this appeal. Hence, we condone the delay and proceed to dispose off the appeal on merits.

ITA No.2490/CHNY/2026 - 4 - Kandasamy Umapathy 4. The Ld. AR submitted that the assessee had made a bona fide attempt to settle the dispute under the Direct Tax Vivad Se Vishwas Scheme. However, owing to severe financial hardship arising from the COVID-19 pandemic, which had seriously affected the operations of the assessee's play school catering to children below five years of age, the assessee was unable to comply with the payment requirements under the Scheme, resulting in the failure of the application. The Ld. AR further submitted that the FAA had erroneously treated the appeal as deemed withdrawn merely because Form No. 3 had been issued under the Scheme, without verifying whether the assessee had filed Form No. 4 evidencing payment of the amount determined under the Scheme. It was contended that, in the absence of filing of Form No. 4 and completion of the statutory requirements under the Scheme, the appeal could not have been treated as withdrawn. Accordingly, it was submitted that the order of the FAA is unsustainable and deserves to be set aside.

ITA No.2490/CHNY/2026 - 5 - Kandasamy Umapathy Scheme. The assessee has contended that, although an application was filed under the Scheme, the payment could not be made due to financial hardship caused by the COVID-19 pandemic and, consequently, Form No. 4 was never filed. Since it is an admitted fact that the payment under the Scheme was not made and Form No. 4 was not issued, the appeal could not have been treated as deemed withdrawn and ought to have been decided on merits. Accordingly, we set aside the order of the FAA and remit the matter to his file for fresh adjudication on merits after affording the assessee a reasonable opportunity of being heard. The assessee is directed to cooperate with the Revenue without seeking unnecessary adjournments. It is ordered accordingly.

Order pronounced in the open court on 16th July,2026 at Chennai.

Sd/- Sd/- (एस.आर. रघुनाथा) (जॉज� जॉज� के) (GEORGE GEORGE K) (S.R. RAGHUNATHA) उपा�य� /VICE PRESIDENT लेखा सद�य/ACCOUNTANT MEMBER चे�नई/Chennai, �दनांक/Dated, the 16th July, 2026 RSR, Sr.PS

ITA No.2490/CHNY/2026 - 6 - Kandasamy Umapathy आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Madurai 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.07.17 17:28:31 +05'30'