Loading judgment…
Facts
The assessee, Rita Naginbhai Patel, did not file an income tax return for AY 2011-12. Her case was reopened under Section 147, but no notice under Section 148 was served. Due to matrimonial issues and a change of address, the assessee was unaware of the proceedings, leading to an ex-parte assessment order. The assessee later discovered the order and filed an appeal before the CIT(A) with a delay of 78 days, which was not condoned.
Held
The Tribunal condoned the delay in filing the appeal before the CIT(A) and the Tribunal, noting the sufficient cause explained by the assessee due to personal difficulties. The Tribunal restored the matter back to the Assessing Officer for a fresh assessment, providing the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the delay in filing the appeal before the CIT(A) and the Tribunal was sufficiently explained and should be condoned, and consequently, whether the ex-parte assessment order should be set aside.
Sections Cited
144, 147, 148, 254(1)
AI-generated summary — verify with the full judgment below
PER PAWAN SINGH, JUDICIAL MEMBER;
This appeal by assessee is directed against the order of Ld. CIT(A) dated 26.03.2024 for assessment year (AY) 2011-12. The assessee has raised following grounds of appeal:
”1. The CIT(Appeal) has erred in not condoning the delay in filing the appeal without appreciating the effect of appellant.
The CIT(Appeal) has erred in dismissing the appeal without considering the material available on record.
The assessment order passed u/s 144 r.w.s. 147 of the Income Tax Act, 1961 is bad in law and need to be quashed.
4. The learned assessing officer erred in making addition of entire cash deposit in the bank account amounting to Rs. 12,83,000/-.
5. The learned assessing officer erred in making addition of bank interest of Rs. 28,493/-.
The appellant craves leave to add, alter or amend the ground of appeal at or before the hearing of appeal.” 2. Rival submissions of both the parties have been heard and record perused.
The learned Authorised Representative (ld. AR) of the assessee submits that assessee is individual and maintaining his day-to-day expenses by providing tuitions to young students by visiting their residences. No return of income was filed by the assessee for A.Y. 2011-12, as the assessee was not having sufficient income. The case of assessee was reopened under section 147. No notice of reopening under section 148 was served upon the assessee. The assessee has shifted from old address due to matrimonial litigation with her husband. The assessee shifted to address at Goregaon. The consultant who was looking after the filing of income tax return was engaged by her husband prior to divorce, who was not informed the assessee nor he made any compliance. The address in the record of PAN Card was of her parent. As notices were not served upon the assessee hence, assessment was completed in ex-parte proceedings on 13.12.2018. The Assessing Officer (AO) determined taxable income at Rs. 13,11,490/-. The said order was also sent on the email of old consultant. The assessee came to know about passing of the assessment where assessing officer made a telephone call for tax demand. The assessee immediately obtained the copy of assessment order from AO and filed appeal before ld. CIT(A). There was slight delay of 78 days in filing appeal. The ld. CIT(A) not condoned the delay in filing appeal. During the period, when appeal was filed before ld. CIT(A), the assessee was passing through crucial face of her life and matrimonial dispute resulted into divorce from Family Court, Bandra on 31.05.2019. Due to unexpected responsibility and to restore the life to normalcy, the assessee was not accessing her email. She was under bona fide impression that physical notice will be served. Ultimately, appeal of assessee was dismissed on 26.03.2024. The assessee came to know about passing of such order only on 26.03.2025 when she tried to find out the status of her appeal. The ld. AR of the assessee submits that assessee is still facing difficulty in her life in maintaining herself and her daughter. The assessee is law abiding citizen and really interested in pursuing appeal before lower authorities. The assessee has shown sufficient cause for condonation of delay in filing appeal before ld. CIT(A) as well as before this Tribunal. Such delay may be condoned and matter may be restored back to the lower authorities. The ld. AR of the assessee made a specific prayer that in case the matter is restored to the file of ld CIT(A) and the assessee files submissions or evidence, the ld. CIT(A) may require remand report from assessing officer, therefore, to avoid such technicalities of remand report, the matter may be restored back to the file of assessing officer. He undertakes on behalf of assessee to be more vigilant in future in making timely compliance and attending the hearing in time.
3. On the other hand, the learned SeniorDepartmental Representative (ld. DR) for the revenue supported the order of lower authorities. The ld. Sr. DR for the revenue submits that assessee is a non-filer of return of income. The notice during assessment proceeding was served through fixation. Despite sending a number of notices, no compliance was made by her. Appeal before ld. CIT(A) was not filed in time. The ld. Sr. DR for the revenue submits that no further opportunity be given to the assessee.
We have considered the rival submissions of both the parties and have gone through the orders of authorities below. We find that assessment was completed under section 144. Before us, the assessee has explained the non- compliance before AO, which we have recorded in para-2(supra). All the contentions of ld AR of the assesseeis supported byaffidavit of assessee. We further, find that ld. CIT(A) dismissed the appeal of assessee for the want of delay in filing appeal. We find that the ld. AR of the assessee has sufficiently explained the cause of delay before ld CIT(A). hence, delay in filing appeal before ld CIT(A) is condoned.On further considering all the submissions of ld AR of the assessee, we also find that the assessee has also reasonably explained the cause of non-appearance as well as delay in filing present appeal before Tribunal. Hence, such delay in filing this appeal is also condoned. Further, considering the fact that the assessee remained unrepresented before assessing officer and first appeal of assessee was dismissed in limine/ unadmitted. As we have already condoned the delay in filing appeal. Thus, the matter is restored back to the file of assessing officer to pass the order afresh in accordance with law. The assessing officer is directed to provide reasonable opportunity of hearing to the assessee. The assessee is also directed to be more vigilant in future making timely compliance. Finally, considering the fact that we have restored the matter back to the file of assessing officer, therefore, adjudication of merit of other grounds of appeal have become academic. In the result, grounds of appeal raised by assessee are allowed for statistical purpose.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order was pronounced in the open Court on 15/07/2025.