VIGNESH RAJAN,CHENNAI vs. DCIT, CORP. CIRCLE-1(1), CHENNAI

At the threshold, we observe that there is a delay of 233 days in the filing of the present appeal by the assessee. The assessee has furnished an affidavit explaining that the assessee did not regularly check the income tax portal and hence the assessee was not aware of the hearing notices issued by the first appellate authority and impugned order passed by the ld.CIT(A) during the relevant period. The assessee became aware only in the second week of December 2025 after attaching the bank account by the department and immediately filed the appeal on 19.12.2025. 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 and had not filed his return of income for A.Y.2018-19. The case reopened u/s.147 of the Act, accordingly, a notice u/s.148 of the Act was issued to the assessee. In response to the notice, the assessee filed his return of income on 28.04.2022 for A.Y 2018-19, declaring total income of Rs.4,98,200/-. The AO completed the assessment proceedings by passing an order u/s.147 r.w.s 144 r.w.s 144B of the Act dated 17.03.2023, determining taxable income at Rs.1,37,66,100/-. Further, the AO initiated penalty proceedings u/s.270A of the Act on 17.03.2023, for under reporting of income to the tune of Rs.95,00,000/-. Since, the assessee did not respond for any of the notices, the AO concluded the penalty proceedings and levied penalty of Rs.14,48,159/- u/s.270A of the Act for under reporting of the income for the A.Y.2018-19 by passing an order dated 28.09.2022. :-3-:

Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC, Delhi on 10.10.2023. 5. At the outset, we observed that ld.CIT(A) has provided four opportunities for the assessee to appear for hearings as detailed in paragraph 4.1 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 31.01.2025 by confirming the order of the Assessing Officer.

The ld.AR submitted that the assessee did not check the email and income tax portal during the relevant period and hence the assessee was not aware of the hearing notices issued by the first appellate authority and impugned order passed by the ld.CIT(A) and hence the assessee could not attend the appellate proceedings. In view of the above, the ld.AR prayed to set aside the order of the 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 Assessing Officer to complete the assessment proceedings effectively.

Per contra, the ld.DR submitted that both the Assessing Officer 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 penalty order u/s.270A of the Act by considering the information available with the department and on appeal the same has been dismissed by :-4-:

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 to 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.