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Facts
The assessee deposited a significant sum in cash during the relevant financial year and did not file an Income Tax Return. Despite notices, the assessee did not comply. The Assessing Officer made an addition of Rs. 1,49,17,500/-. The Commissioner (Appeals) dismissed the assessee's appeal ex-parte, and the assessee filed a further appeal with a significant delay.
Held
The Tribunal condoned the delay of 376 days in filing the appeal, finding no malafides. The Tribunal set aside the ex-parte order of the CIT(A) and restored the matter to the CIT(A) for a fresh decision after providing a fair opportunity of hearing to the assessee, as the Departmental Representative had no objection.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the CIT(A) erred in passing an ex-parte order in violation of natural justice principles.
Sections Cited
250, 144, 147, 148, 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘F’: NEW DELHI
O R D E R PER VIMAL KUMAR, JM: Application for condonation of delay of 376 days in filing appeal and appeal filed by the Assessee are against order dated 21.09.2023 of Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘the Ld. CIT(A)’] passed u/s 250 of the Income Tax Act, 1961, [hereinafter referred to as ‘the Act’] arising out of assessment order dated 10.12.2019 of Ld. Assessing Officer/ Income Tax Officer, Ward 5(1),(5), Gautam Budh Nagar [hereinafter referred as ‘the AO’] u/s 144/147 of the Act for Assessment Year 2012-13.
Brief facts of the case are that assesse is deposited Rs.1,49,17,500/- in cash in his bank account during the F.Y.2011-12 relevant to A.Y.2012-13 and did not file ITR. Verification letter dated 01.03.2019 was issued. Assessee did not reply. Action u/s 147 of the Act was taken after getting approval from the Pr. CIT, Noida. Notice u/s 148 was issued on 29.03.2019. No compliance was made. Notices u/s 142(1) of the Act dated 25.07.2019 & 26.09.2019 along with questionnaire were issued but of no use. On completion of proceedings, Ld. AO vide order dated 10.12.2019 assessed income of the assessee as Rs.1,49,17,500/-.
Against order dated 10.12.2019 of Ld. AO, the assessee filed appeal before the Ld. CIT(A) which was dismissed vide order dated 21.09.2023.
Being aggrieved, the appellant assessee preferred present appeal and application for condonation of delay of 376 days in filing of appeal and appeal. Ld. Authorized Representative for appellant assessee submitted that the delay of 376 days in filing appeal is due to lack of knowledge of provisions and income tax portal and passing of the assessment order. The explanation for condonation of delay of 376 days in filing appeal does not smack of malafides as appellant has not gained anything by not filing appeal within period of limitation. Therefore, delay of 376 days in filing appeal is condoned.
Ld. Authorized Representative submitted that Ld. CIT(A) erred in confirming the order of Ld. AO through ex-parte order in violation of principle of natural justice. The matter may be restored to the file of Ld. CIT(A).
Ld. Departmental Representative had no objection.
From examination of record, in light of aforesaid rival contention, it is crystal clear that the Ld. CIT(A) through ex-parte order dated 21.09.2023 dismissed the appeal due to non-filing of sufficient material to substantiate grounds of appeal. Ld. Authorized Representative has requested that the matter be restored to the file of Ld. CIT(A). Ld. Departmental Representative has no objection. In view of the above material facts in the interest of justice, impugned order dated 21.09.2023 of Ld. CIT(A) is setting aside and the matter is restored to the file of Ld. CIT(A) for fresh decision in accordance with law after affording fair opportunity of hearing to the assessee.
In the result, the application for condonation of delay of 376 days in filing appeal is allowed and appeal filed by the assessee is allowed for statistical purposes.