What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal, acknowledging the assessee's reasons. While deprecating the assessee's non-compliance, the Tribunal restored the matter to the Assessing Officer for fresh adjudication as a last opportunity.

The assessee filed an appeal with a significant delay due to health issues and unawareness of the appellate order. The original assessment was completed ex-parte on a best judgment basis, and the first appellate authority also issued an ex-parte order due to non-compliance with notices.

What were the issues?

Whether the delay in filing the appeal should be condoned and if the ex-parte assessment and appellate orders should be set aside to grant the assessee an opportunity to present their case.

Sundaramoorthy Rajarajan… vs Ward 2(1), Trichy | ITAT Chennai 2026

Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA

Hearing: 17.06.2026Pronounced: 18.06.2026

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 24.10.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18.

ITA No.2368/CHNY/2026 - 2 - Sundaramoorthy Rajajan 2. There is a delay of 145 days in filing the appeal. The assessee has filed an affidavit for condonation of delay stating therein the reasons for belated filing of appeal. It is submitted that the assessee became aware of the appellate order only in the month of September 2025, on receipt of intimation message from the Department calling for payment of arrears of tax. It was further stated that the assessee was suffering from serious health issues and was under medical treatment for a period of six months from September, 2025 to February, 2026. Due to his prolonged illness, the assessee was not in a position to file the appeal within the prescribed time. 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.

At the very outset, we notice that the order of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to five notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis r.w.s.144 of the Act.

ITA No.2368/CHNY/2026 - 3 - Sundaramoorthy Rajajan 4. The ld.AR submitted that the assessee failed to take note of the notices issued by the FAA & AO. The Ld. AR, only pleaded that one more opportunity be granted to the assessee and the matter be restored to the file of the AO, so as to enable the assessee to effectively present his case and he undertook that he would duly appear and furnish the necessary details as and when called for.

The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA & AO and there is no violation of principles of natural justice. Therefore, it was submitted that the appeal of the assessee may be dismissed.

We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA were ex- parte, since the assessee did not respond to various notices issued from the office of the AO & FAA. The Ld. AR submitted that one more opportunity may be granted to the assessee to represent his case before the AO and undertook that he would duly appear and furnish the necessary details as and when called for. We strongly deprecate the nonchalant attitude of the assessee in not responding to the statutory notices issued by the FAA & AO. However, considering the submissions of the Ld. AR and in the interest of justice and fair play,

ITA No.2368/CHNY/2026 - 4 - Sundaramoorthy Rajajan we are of the view that the matter ought to be restored to the files of the AO as a last opportunity with a condition assessee pays a cost of Rs.5,000/- (Rupees five thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.5,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and furnish all requisite details and evidences in support of his claim and shall not seek unnecessary adjournment. It is ordered accordingly.

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

Order pronounced in the open court on 18th June,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 18th June, 2026 RSR, Sr.PS

ITA No.2368/CHNY/2026 - 5 - Sundaramoorthy Rajajan 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: 2026.06.22 12:28:16 +05'30'

SUNDARAMOORTHY RAJARAJAN,THOTTIAM, TRICHY vs. WARD 2(1), TRICHY, TRICHY

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