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Facts
The assessee, engaged in civil construction, did not file an income tax return for AY 2013-14. The case was reopened under Section 147 due to cash deposits. Notices were allegedly not received, leading to an ex-parte assessment order under Section 144 read with Section 147.
Held
The Tribunal noted that the assessee neither participated in the proceedings before the Assessing Officer nor the CIT(A), resulting in ex-parte orders. However, considering the totality of facts and the assessee's prayer, an opportunity was granted to the assessee to present their case before the CIT(A).
Key Issues
Whether the delay in filing the appeal before the ITAT should be condoned and the matter remanded to the CIT(A) for fresh adjudication, given the circumstances of non-receipt of notices and lack of participation.
Sections Cited
144, 147, 148, 142(1), 133(6), 69A, 80TTA, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
Assessee by : Shri Kishor B Phadke Revenue by : Shri Basavaraj Hiremath Date of hearing : 23.02.2026 Date of pronouncement : 13.03.2026 आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2013-14 is directed against the order dated 09.02.2024 framed by National Faceless Appeal Centre, Delhi (NFAC) arising out of Assessment Order dated 03.12.2018 passed u/s. 144 r.w.s.147 of the Income Tax Act, 1961 (in short ‘the Act’).
2. Registry has pointed out that the appeal is barred by limitation as the assessee has filed the appeal before this Tribunal with a delay of 364 days. Assessee has filed an affidavit explaining the delay. Content of said affidavit reads as under :
“1. I was subjected to re-assessment proceeding for AY 2013-14. The learned ITO, Ward 1, Dhule (hereinafter referred to as the learned AO) issued various notices. However, to the best of my belief, the said notices were not received by me. As there was no submission before the learned AO, order u/s 144 r.w.s. 147 of the ITA, 1961 was passed on 03/12/2018 by making addition of Rs. 60,67,419/-. However, the said order was received by me only on 28/02/2020.
The reason for non-receipt of notices and order could be that, though my address registered with the income Tax Department was "303, Lala Sardar Nagar, Behind L.M. Sardar School, Dhule 424002", from the year 2010, I was residing at "Plot No. 11, Mohammadi Nagar, Jaihind Colony, Deopur, Dhule residing at my old address. Further, during the period of re-assessment proceeding i.e. during the years 2018, 2019 & 2020, most of the time, I was based in Surat, Gujarat, for my work.
3. It was only on 28/02/2020, when I received a call from the Income Tax Office to collect the notices & orders, I became aware of the fact that the order u/s 144 r.w.s. 147 and u/s 271(1)(c) of the ITA, 1961 has already been passed by raising demand of Rs. 30,08,502/-and Rs. 16,99,733/- respectively and recovery proceeding were also initiated by attaching my Bank A/c's.
4. As soon as I became aware of the said fact, I consulted a Tax Consultant based in Jalgaon for further course of action. It was advised by the said Tax Consultant, to file appeal before the learned CIT(A). Accordingly, I had handed over all the documents available with me to the said Tax Consultant and with his help, filed an appeal before the learned CIT(A).
To the best of my belief, it was only at the time of filing of appeal that my PAN was registered on the Income Tax Portal and e-mail id of the Tax Consultant of Jalgaon i.e. sameerforever62@gmail.com was provided.
6. Recently i.e. on 19/02/2025, I received a physical letter dated 13/02/2025 from the learned AO, wherein it was stated that the appeal filed before the learned CIT(A) has been dismissed and outstanding tax amount of Rs. 30,18,500/- should be paid within 7 days.
7. Immediately after receipt of the said notice dated 13/02/2025, I approached the Tax Consultant of Jalgaon. But it was informed by him that he is no longer practicing. As such, I approached another Tax Consultant based in Dhule. After going through the Income Tax Portal, it was informed by the said Tax Consultant of Dhule that the learned CIT(A) has already passed the order on 09/02/2024 by dismissing the appeal. It was also informed that the order must have been received on the e-mail id, provided on the Income Tax Portal. Unfortunately, the Tax Consultant of Jalgaon whose e-mail id was registered, glossed over the receipt of order on e-mail id and did not inform me about receipt of the order from the learned CIT(A).
It was advised by the Tax Consultant of Dhule that the only recourse available now is to file an appeal before the Honourable ITAT, Pune Bench against the order passed by the learned CIT(A). It was also informed that before filing of appeal before the Honourable ITAT, certain facts need to be confirmed from the Income Tax Department.
It was also informed by the said Tax Consultant of Dhule that that the learned CIT(A) has dismissed the appeal because there is delay in filing the appeal. As stated above though the order u/s 144 r.w.s. 147 of the ITA, 1961 was passed on 03/12/2018, it was received by me only on 28/02/2020. To substantiate the said fact, it was advised to file application to the learned AO for details of service of notices and orders. Accordingly, an application dated 26/02/2025 and reminder dated 27/03/2025 was filed before the learned AO.
The learned AO vide letter dated 23/04/2025 provide the detail of service of order u/s 144 r.w.s. 147 of the ITA, 1961. It is mentioned in the said letter that the order was dispatched on 06/12/2018 but was returned by the Postal Authorities and was handed over to me only on 28/02/2020.
Based on the above facts, with the help of the Tax Consultant of Dhule, I approached a Tax Counsel in Pune. After going through the orders and other details, it was advised by the Tax Counsel that the there is merit in filing the appeal.
It was also informed by the Tax Counsel that now all the Income Tax proceedings are carried out in faceless manner and no physical notices / orders are issued. All the notices /orders are issued on the e-mail id provided and one should be vigilant about the same.
Accordingly, after I provided all the details regarding my case, the Tax Counsel in Pune prepared the appeal. However, in the said process the stipulated time of filing the appeal before the Honourable ITAT, Pune Bench had already expired leading to delay of about 387 days. The said delay is computed as under: Date of order u/s 250 09/02/2024 Date of receipt of order (Assumed for delay purpose) 09/02/2024 Last date for filing appeal 09/04/2024 Proposed Date of filing of appeal 30/04/2025 No. of days delay in filing appeal (from 10/04/2024 to 30/04/2025) 387 days 14. I state that, the reason of delay was that I was completely unaware of the conclusion of proceedings before the learned CIT(A) on 09/02/2024, as the communication regarding the passing of the order was sent to the e-mail id used during the registration of the PAN on the Income Tax Portal. As stated above, to the best of my belief this e-mail id belonged to the Tax Consultant of Jalgaon on whom I relied, in absence of knowledge of the Income Tax Proceedings; however, he glossed over the receipt of the order over his e-mail id and failed to inform me about the same. It was only when I received the physical letter of tax demand dated 13/02/2025 from the learned AO, I became aware of passing of the order by the learned CIT(A), dismissing my appeal.
Further also state that the reason for delay was that I was not subjected to any scrutiny/income tax proceedings in the past years and AY 2013-14 was the first and only year of any income tax proceedings in my case. I am unaware of the income tax procedures and compliances for the same. I am not well-versed with the working of the income tax portal and nitty-grities of the income tax proceedings and I was completely unaware of the necessary steps to be followed and precautions to be kept during income tax proceedings.
Furthermore, I also state that substantial time was also lost in finding and consulting a Tax Consultant/Counsel in Dhule and Pune to assist in filing the appeal before the Honourable ITAT and in obtaining the details regarding service of order from the learned AO. On consulting the new Tax Consultant/Counsel, substantial time passed in the process of compiling and collecting details and information as requested by the Tax Consultant / Counsel. Once the same had been complied with and collected, i submitted the same to the Tax Consultant / Counsel. The Tax Consultant / Counsel immediately took requisite action and compiled by filing the appeal.
I state that the said delay of 387 days is purely un-intentional, and I deeply apologize for the same. I request the Honorable Bench to kindly condone the said delay.”
Considering above averments made by the assessee and also adopting justice oriented approach, we find that the delay is not deliberate and placing reliance on the judgments of Hon’ble Apex Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) condone the delay of 364 days before this Tribunal and admit the appeal for adjudication.
Brief facts are that the assessee is an individual engaged in the business of Civil Construction Work and did not file any return of income. Based on the information that assessee has deposited cash in the savings bank, case reopened u/s.147 of the Act. Valid statutory notices u/s.148 and 142(1) served upon the assessee to which there was no compliance from the side of assessee. Ld. Assessing Officer observed that assessee has deposited cash of Rs.60,62,000/- in the savings bank accounts maintained with HDFC bank and Dhule Vikas Sahkari Bank Ltd. After receiving reply from the banks in response to the notices issued u/s.133(6) of the Act, ld. Assessing Officer completed the assessment u/s.144 of the Act and made addition of Rs.60,62,000/- u/s.69A of the Act as unexplained money. He also made addition on account of interest received at Rs.5,419/-. Income assessed at Rs.60,67,420/-.
5. Aggrieved assessee preferred appeal before ld.CIT(A) but with a delay of 451 days. Ld.CIT(A) did not condone the delay and dismissed the appeal of the assessee. Now the assessee is in appeal before us assailing the impugned order.
Before us, ld. Counsel for the assessee referring to paper book running into 60 pages submitted that assessee is an illiterate and was residing at Surat at the time of assessment proceedings and he received the assessment order only on 28.02.2020. Due to reasons beyond control of the assessee, there was non-compliance before the lower authorities. Assessee has a prima-facie case and possesses all the details/evidences to substantiate the cash deposits and cheques aggregating to Rs.32,16,000/- were reversed by the bank on account of dishonour. As regards the addition of interest at Rs.5,419/-, the same is eligible for deduction u/s.80TTA of the Act. If an opportunity is granted, the assessee is in a position to explain the source of cash deposits.
On the other hand, ld. DR supported the orders of the lower authorities.
8. We have heard the rival contentions and perused the record placed before us. We on perusal of the orders of the authorities below observe that assessee has neither participated in the proceedings before the Assessing Officer nor before the ld.CIT(A) resulting into passing of the exparte orders. However, considering the totality of facts and circumstances and the prayer made by ld. Counsel for the assessee, we deem it appropriate to grant an opportunity to the assessee to go before ld.CIT(A). In view thereof, without dwelling into merits of the case, the issues raised in the instant appeal are remitted back to the file of ld.CIT(A) for afresh adjudication. Needless to mention that ld.CIT(A) in the set aside proceedings shall provide reasonable opportunity to the assessee and consider the documents/evidences to be filed by the assessee. Assessee is also directed to remain vigilant and make satisfactory compliance to the notice(s) of hearing issued by ld.CIT(A) and should refrain from taking adjournments unless otherwise required for reasonable cause. Effective grounds of appeal
raised by the assessee are allowed for statistical purposes.
9. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 13th day of March, 2026.