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Facts
The assessee's appeal was dismissed by the CIT(A) for non-compliance with notices. The assessee claims they did not receive notices and were unaware of the proceedings, attributing this to reliance on professionals. A delay of 290 days occurred in filing the present appeal.
Held
The Tribunal held that the delay in filing the appeal was due to sufficient and bona fide reasons and condoned it. The CIT(A)'s order was found to suffer from procedural infirmity as it did not adjudicate the matter on merits.
Key Issues
Whether the delay in filing the appeal should be condoned, and whether the CIT(A) erred in dismissing the appeal without adjudicating on merits due to alleged non-compliance.
Sections Cited
80P(2)(d), 234A, 234B, 234C, 143(1), 250(4)
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Income Tax Appellate Tribunal, MUMBAI BENCH “H (SMC
Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN
ORDER
PER OM PRAKASH KANT, AM
This appeal has been preferred by the assessee against order dated 27.06.2024 passed by the Ld. Additional/Joint Commissioner of Income-tax (Appeals), Agra [hereinafter shall be referred as ‘Ld. CIT(A)’] for assessment year 2017-18, raising following grounds:
1. Under the facts and in the circumstances of the case and in Under the facts and in the circumstances of the case and in Under the facts and in the circumstances of the case and in law the learned COMMISSIONER OF INCOME TAX, APPEALS w the learned COMMISSIONER OF INCOME TAX, APPEALS w the learned COMMISSIONER OF INCOME TAX, APPEALS ADDL/JCIT(A)AGRA ADDL/JCIT(A)AGRA ADDL/JCIT(A)AGRA has has has erred erred erred in in in passing passing passing the the the order order order dismissing the appeal without appreciating the latest dismissing the appeal without appreciating the latest dismissing the appeal without appreciating the latest Honorable Supreme Court Order as well as many High Court Honorable Supreme Court Order as well as many High Court Honorable Supreme Court Order as well as many High Court and Tribunal Judgement, which has upheld the claim of and Tribunal Judgement, which has upheld the cl and Tribunal Judgement, which has upheld the cl deduction under section 80P(2)(d) of the Income Tax Act, deduction under section 80P(2)(d) of the Income Tax Act, deduction under section 80P(2)(d) of the Income Tax Act, 1961 claimed by the appellant society. 1961 claimed by the appellant society.
Under the facts and in the circumstances of the Under the facts and in the circumstances of the case and in Under the facts and in the circumstances of the law the learned COMMISSIONER OF INCOME TAX, APPEALS law the learned COMMISSIONER OF INCOME TAX, APPEALS law the learned COMMISSIONER OF INCOME TAX, APPEALS ADDL/JCIT(A), AGRA has erred in passing ADDL/JCIT(A), AGRA has erred in passing the order by not the order by not applying his mind at all to the grounds of appeal
l and applying his mind at all to the grounds of appeall and applying his mind at all to the grounds of appeall and statement of facts and revised computation of income filed statement of facts and revised computation of income filed statement of facts and revised computation of income filed with Form No.35. with Form No.35.
3. Under the facts and in the circumstances of the Under the facts and in the circumstances of the case and in Under the facts and in the circumstances of the law the learned COMMISSIONER OF INCOME TAX, APPEALS law the learned COMMISSIONER OF INCOME TAX, APP law the learned COMMISSIONER OF INCOME TAX, APP ADDL/JCIT(A), AGRA has erred in not serving proper notices ADDL/JCIT(A), AGRA has erred in not serving proper notices ADDL/JCIT(A), AGRA has erred in not serving proper notices of hearing and deprived the opportunity to the appellant to of hearing and deprived the opportunity to the appellant to of hearing and deprived the opportunity to the appellant to file documents in support of grounds of appeal and to rebut file documents in support of grounds of appeal and to rebut file documents in support of grounds of appeal and to rebut the intimation order. The appellant was prevented from filing the intimation order. The appellant was prevented from filing the intimation order. The appellant was prevented from filing the docume the documents in support of grounds of appeal and written nts in support of grounds of appeal and written submission to substantiate its claim of wrongful calculation submission to substantiate its claim of wrongful calculation submission to substantiate its claim of wrongful calculation of tax liability. of tax liability. 4.
4. Under the facts and in the circumstances of the case and in 4. Under the facts and in the circumstances of the case and in 4. Under the facts and in the circumstances of the case and in law the learned COMMISSIONER OF INCOME TAX , law the learned COMMISSIONER OF INCOME TAX , law the learned COMMISSIONER OF INCOME TAX , APPEALS ADDL/JCIT(A), APPEALS ADDL/JCIT(A), AGRA has erred in not giving AGRA has erred in not giving proper opportunity to the appellant to save from mistake of proper opportunity to the appellant to save from mistake of proper opportunity to the appellant to save from mistake of the professional who has filed ITR the professional who has filed ITR-7 Form wrongly based on 7. Form wrongly based on wrongful computation of income, instead of ITR-5 applicable wrongful computation of income, instead of ITR wrongful computation of income, instead of ITR to the appellant to claim the deduction u/s. 80P(2)(d) of the to the appellant to claim the deduction u/s. 80P to the appellant to claim the deduction u/s. 80P income tax Act, 1961 of the interest earned from the income tax Act, 1961 of the interest earned from the income tax Act, 1961 of the interest earned from the cooperative banks of Rs.6,49,533.00. cooperative banks of Rs.6,49,533.00. 5.
5. The CIT appeal erred in confirming the interest20,585.00
5. The CIT appeal erred in confirming the interest20,585.00
5. The CIT appeal erred in confirming the interest20,585.00 levied by the Deputy Director of Income Tax, CPC u/s 234(A) levied by the Deputy Director of Income Tax, CPC u/s 234(A) levied by the Deputy Director of Income Tax, CPC u/s 234(A) of Rs.685.00, u/s 234(B) of Rs. 1 of Rs.685.00, u/s 234(B) of Rs. 16,440.00 and u/s 234(C) of 6,440.00 and u/s 234(C) of Rs.3,460.00 Rs.3,460.00 6.
6. The Appellant is facing financial difficulties since Covid 19
6. The Appellant is facing financial difficulties since Covid 19
6. The Appellant is facing financial difficulties since Covid 19 epidemic. The undue burden of tax is coming on society due epidemic. The undue burden of tax is coming on society due epidemic. The undue burden of tax is coming on society due to mistakes made by professional who had filed wrong to mistakes made by professional who had filed wrong to mistakes made by professional who had filed wrong income tax return form. Hence, Appellant income tax return form. Hence, Appellant be granted an be granted an opportunity opportunity opportunity to to to rectify rectify rectify the the the genuine genuine genuine mistake mistake mistake in in in computing computing Taxable income.
2. At the outset, learned counsel appearing on behalf of the At the outset, learned counsel appearing on behalf of the At the outset, learned counsel appearing on behalf of the appellant has drawn our attention to the application filed seeking appellant has drawn our attention to the application filed seeking appellant has drawn our attention to the application filed seeking condonation of delay in preferring the appeal before the Income Tax in preferring the appeal before the Income Tax Appellate Tribunal. The record reveals that the impugned order Appellate Tribunal. The record reveals that the impugned order Appellate Tribunal. The record reveals that the impugned order passed by the ld CIT(A) is dated passed by the ld CIT(A) is dated 27.06.2024, whereas the appeal , whereas the appeal has been filed before the ITAT on has been filed before the ITAT on 15.04.2025, thereby occasioning , thereby occasioning a delay of 290 days. . In support of the application for condonation, In support of the application for condonation, it has been submitted that the appellant had not received the it has been submitted that the appellant had not received the it has been submitted that the appellant had not received the intimation of the appellate order and, therefore, could not file the intimation of the appellate order and, therefore, could not file the intimation of the appellate order and, therefore, could not file the appeal in time. It has further been submitted that the appellant is appeal in time. It has further been submitted that the appellant is appeal in time. It has further been submitted that the appellant is not well-versed with the procedural and electronic formalities of versed with the procedural and electronic formalities of versed with the procedural and electronic formalities of income-tax filing and assessment and had relied entirely upon tax filing and assessment and had relied entirely upon tax filing and assessment and had relied entirely upon professionals. According to the appellant, although an online professionals. According to the appellant, although an online professionals. According to the appellant, although an online rectification application was filed against the intimation order dated rectification application was filed against the intimation order dated rectification application was filed against the intimation order dated 01.03.2019 under section 143(1) of the Act, the same was neither 01.03.2019 under section 143(1) of the Act, the same was neither 01.03.2019 under section 143(1) of the Act, the same was neither disposed of nor any communication was received from the disposed of nor any communication was received from the disposed of nor any communication was received from the Department. The appellant contends that only upon receiving a Department. The appellant contends that only upon receiving a Department. The appellant contends that only upon receiving a communication communication dated dated 03.04.2025 from from the the Jurisdictional Jurisdictional Assessing Officer forwarding the dismissal order dated forwarding the dismissal order dated 27.06.2024, forwarding the dismissal order dated was the appellant made aware of the fate of the earlier proceedings. was the appellant made aware of the fate of the earlier proceedings. was the appellant made aware of the fate of the earlier proceedings. Consequently, the present appeal was filed. The relevant extract Consequently, the present appeal was filed. The relevant extract Consequently, the present appeal was filed. The relevant extract from the written submission filed by the assessee reads as under: from the written submission filed by the assessee reads as under: from the written submission filed by the assessee reads as under:
The appeal was filed against the Intimation Order dated ppeal was filed against the Intimation Order dated ppeal was filed against the Intimation Order dated 01.03.2019 passed under section 143(1) of the INCOME Tax 01.03.2019 passed under section 143(1) of the INCOME Tax 01.03.2019 passed under section 143(1) of the INCOME Tax Act, 1961 by CPC, Bengaluru for A.Y.2017 Act, 1961 by CPC, Bengaluru for A.Y.2017-18 on 22.03.2024 18 on 22.03.2024 before CIT(Appeals). The Commissioner of Income Tax, Appeal before CIT(Appeals). The Commissioner of Income Tax, Appeal before CIT(Appeals). The Commissioner of Income Tax, Appeal ADDL/JCIT(A) AGRA DISMISSED th ADDL/JCIT(A) AGRA DISMISSED the appeal on 27.06.2024 on e appeal on 27.06.2024 on the ground of all notices served upon the appellant were not the ground of all notices served upon the appellant were not the ground of all notices served upon the appellant were not responded. However, by dismissing the appeal he violated the responded. However, by dismissing the appeal he violated the responded. However, by dismissing the appeal he violated the provisions of Section 250 (4) of IT Act. Before dismissing an provisions of Section 250 (4) of IT Act. Before dismissing an provisions of Section 250 (4) of IT Act. Before dismissing an appeal, the Commissioner may find a reason to appeal, the Commissioner may find a reason to conduct further conduct further inquiries himself or order an Assessing Officer to inquire and inquiries himself or order an Assessing Officer to inquire and inquiries himself or order an Assessing Officer to inquire and give a report to him, which he has failed to do. give a report to him, which he has failed to do. Hence online application was made for rectification of appeal Hence online application was made for rectification of appeal Hence online application was made for rectification of appeal order vide Rectification ref no 355560330060824 dtd.6.8.2024 order vide Rectification ref no 355560330060824 dtd.6.8.2024 order vide Rectification ref no 355560330060824 dtd.6.8.2024 under sec 154: ITBA/APL/ S/250/2024 sec 154: ITBA/APL/ S/250/2024-25/1066113846(1) IS 25/1066113846(1) IS ACKNOLEGED. It was informed that any progress on the status ACKNOLEGED. It was informed that any progress on the status ACKNOLEGED. It was informed that any progress on the status will be updated by concerned CIT(A)/NFAC. However, we have will be updated by concerned CIT(A)/NFAC. However, we have will be updated by concerned CIT(A)/NFAC. However, we have not received any communication from CIT(A)/NFAC till today. not received any communication from CIT(A)/NFAC till today. not received any communication from CIT(A)/NFAC till today. Letter written to AO, but Letter written to AO, but AO is clueless about the matter. We AO is clueless about the matter. We are unable to contact the CIT(A)/NFAC THE MATTER FOR are unable to contact the CIT(A)/NFAC THE MATTER FOR are unable to contact the CIT(A)/NFAC THE MATTER FOR HEARING OF OUR APPLICATION FOR RECTIFICATION of HEARING OF OUR APPLICATION FOR RECTIFICATION of HEARING OF OUR APPLICATION FOR RECTIFICATION of appeal order. Since no response was received again the appeal order. Since no response was received again the appeal order. Since no response was received again the Grievance was raised on 12.02.2025, which is not resolved till Grievance was raised on 12.02.2025, which is not resolved till Grievance was raised on 12.02.2025, which is not resolved till today. In the meantime, the appellant received letter from oday. In the meantime, the appellant received letter from oday. In the meantime, the appellant received letter from Jurisdictional Income Tax Officer, Ward 41(2)(5), Mumbai Jurisdictional Income Tax Officer, Ward 41(2)(5), Mumbai Jurisdictional Income Tax Officer, Ward 41(2)(5), Mumbai dtd.03.04.2025 informing that the resolution of the grievance dtd.03.04.2025 informing that the resolution of the grievance dtd.03.04.2025 informing that the resolution of the grievance The order u/s.250 of the IT Act passed by Ld.CIT(A) on "The order u/s.250 of the IT Act passed by Ld.CIT(A) on "The order u/s.250 of the IT Act passed by Ld.CIT(A) on 27.06.2024 and enclosed 27.06.2024 and enclosed the appeal dismissal order. Hence the appeal dismissal order. Hence the appellant is filing the appellant is filing the appeal now.” 2.1 Having considered the explanation furnished, and upon Having considered the explanation furnished, and upon Having considered the explanation furnished, and upon perusal of the record, we are satisfied that the delay in filing the perusal of the record, we are satisfied that the delay in filing the perusal of the record, we are satisfied that the delay in filing the sufficient and bona fide reasons, and not appeal was caused due to appeal was caused due to sufficient and bona fide rea due to any deliberate inaction or negligence on the part of the due to any deliberate inaction or negligence on the part of the due to any deliberate inaction or negligence on the part of the appellant. Accordingly, the delay in filing the appeal is condoned, appellant. Accordingly, the delay in filing the appeal is appellant. Accordingly, the delay in filing the appeal is and the appeal is admitted for adjudication on merits. and the appeal is admitted for adjudication on merits. and the appeal is admitted for adjudication on merits.
2.2 Turning to the merits of the matter, the impugned order of the Turning to the merits of the matter, the impugned order of the Turning to the merits of the matter, the impugned order of the CIT(A) indicates that the appeal before him was dismissed for non- CIT(A) indicates that the appeal before him was dismissed for CIT(A) indicates that the appeal before him was dismissed for compliance, observing that the appellant had failed to respond to observing that the appellant had failed to respond to observing that the appellant had failed to respond to multiple statutory notices issued through the Income Tax Business multiple statutory notices issued through the Income Tax Busi multiple statutory notices issued through the Income Tax Busi Application (ITBA). The order records the following details of non Application (ITBA). The order records the following details of non Application (ITBA). The order records the following details of non compliance: S. No. Date of compliance Response of appellant Response of appellant Notice issue date Notice issue date (through ITBA) (through ITBA)
1 15.05.2024 30.05.2024 15.05.2024 No written submission No written submission filed in support of filed in support of grounds of appeal. No grounds of appeal. No 2 03.06.2024 10.06.2024 03.06.2024 request of adjournment request of adjournment made. 3 12.06.2024 19.06.2024 12.06.2024 4 20.06.2024 26.06.2024 20.06.2024 The CIT(A), in dismissing the appeal, observed that: 2.3 The CIT(A), in dismissing the appeal, observed that: The CIT(A), in dismissing the appeal, observed that:
4. Decision I, have carefully gone through the facts of the case. Moreover, I, have carefully gone through the facts of the case. Moreover, I, have carefully gone through the facts of the case. Moreover, all notices were duly served upon the appellant through email. were duly served upon the appellant through email. were duly served upon the appellant through email. The appellant opted not to respond the above notices for The appellant opted not to respond the above notices for The appellant opted not to respond the above notices for the reason best known to them. No documents were produced reason best known to them. No documents were produced reason best known to them. No documents were produced before me in support of his grounds of appeal
or to rebut the before me in support of his grounds of appeal or to rebut the before me in support of his grounds of appeal or to rebut the intimation order. In view of intimation order. In view of the above facts, it is clear that the the above facts, it is clear that the appellant is not interested in prosecuting the present appeal on appellant is not interested in prosecuting the present appeal on appellant is not interested in prosecuting the present appeal on merits and therefore in absence of any evidence to rebut the merits and therefore in absence of any evidence to rebut the merits and therefore in absence of any evidence to rebut the intimation order, the intimation order is CONFIRMED and intimation order, the intimation order is CONFIRMED and intimation order, the intimation order is CONFIRMED and accordingly the appeal is dismissed accordingly the appeal is dismissed. Hence all ground of . Hence all ground of appeal raised by the appellant appeal raised by the appellant are dismissed.”
3. We have heard learned counsel for the Revenue and have also We have heard learned counsel for the Revenue and have also We have heard learned counsel for the Revenue and have also perused the material placed on record. While the appellant has perused the material placed on record. While the appellant has perused the material placed on record. While the appellant has failed to respond to the notices, the explanation for such non- failed to respond to the notices, the explanation for such no failed to respond to the notices, the explanation for such no compliance, as noted in the condonation application and supporting compliance, as noted in the condonation application and supporting compliance, as noted in the condonation application and supporting affidavit, cannot be dismissed lightly. Moreover, it is evident that affidavit, cannot be dismissed lightly. Moreover, it is evident that affidavit, cannot be dismissed lightly. Moreover, it is evident that the CIT(A) did not adjudicate the matter on merits did not adjudicate the matter on merits did not adjudicate the matter on merits. In our considered opinion, the order of the CIT(A) suffers from procedural considered opinion, the order of the CIT(A) suffers from considered opinion, the order of the CIT(A) suffers from infirmity. Given the peculiar facts and circumstances, and in the Given the peculiar facts and circumstances, and in the Given the peculiar facts and circumstances, and in the interest of justice, we deem it appropriate to interest of justice, we deem it appropriate to set aside set aside the order dated 27.06.2024 passed by the passed by the ld. CIT(A), and remit the matter and remit the matter back to him for fresh adjudication fresh adjudication in accordance w in accordance with law after affording due and adequate opportunity of being heard to the affording due and adequate opportunity of being heard to the affording due and adequate opportunity of being heard to the appellant. In the result, grounds of appeal of the assessee are In the result, grounds of appeal of the assessee are In the result, grounds of appeal of the assessee are allowed.
In the result, appeal of the assessee is allowed for statistical In the result, appeal of the assessee is allowed for statistical In the result, appeal of the assessee is allowed for statistical purposes.