ESENZZARO BEVERAGES PRIVATE LIMITED,KOLKATA vs. DCIT - CIRCLE 4(2)(1) MUMBAI, MUMBAI

There is a delay of 425 days in filing the appeal. While explaining the cause of delay, it was submitted, the assessee was totally unaware of the order passed as it went to spam/junk folder in the email-id. Learned counsel submitted, from the communications with the Department, it can be visualized that assessee was finding difficulty in tracking the status of various proceedings. Thus, he submitted, the delay being due to bona fide reasons, should be condoned. in filing the appeal is concerned, after considering the submissions of the parties, we are satisfied that the delay in filing the appeal was due to bona fide reasons. Accordingly, we are inclined to condone the delay and admit the appeal for adjudication.

Asfar as the issue on merit is concerned, the primary grievance of the assessee is against ex parte disposal of its appeal without providing reasonable opportunity of being heard. We find from record, hearing of appeal before the learned First Appellate Authority commenced in the year 2020 when Covid-19 was at its peak. Subsequently, couple of hearing notices were issued to the assessee in the year 2023, which, as alleged by the learned First Appellate Authority, were not responded to. This prompted him to decide the appeal ex parte. However, ld. Counsel has submitted before us that there is no valid reason why the assessee would deliberately not participate in the proceedings when it has challenged the imposition of penalty. He submitted, non-attendance of the assessee was due to communication gap. After perusing the materials on record, we find merit in the submission of the assessee. Hence, we are inclined to set aside the impugned order of the learned First Appellate Authority and restore the matter back to him for de novo adjudication on merits after providing reasonable opportunity of being heard to the assessee.

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