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Facts
The assessee's appeals before the ITAT were filed beyond the limitation period. The assessments and appellate orders were passed ex-parte due to the assessee's failure to respond to notices. Penalties were levied under section 271(1)(c) of the Act.
Held
The Tribunal condoned the delay in filing the appeals. It held that the ends of justice would be served by restoring the appeals to the file of the CIT(A) for a decision on merits after affording a reasonable opportunity of hearing. Consequently, the penalty appeals were also allowed as the foundation for their levy would not survive.
Key Issues
Whether appeals filed beyond the limitation period should be condoned and whether ex-parte orders should be restored to the lower appellate authority for fresh adjudication.
Sections Cited
271(1)(c)
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Income Tax Appellate Tribunal, `GAUHATI BENCH, GUWAHATI
Before: SHRIDUVVURU RL REDDY, VP & SHRI RAJESH KUMAR, AM
These are appeals preferred by the assessee against the orders of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(A)”]even dated 13.08.2025 for the AYs2013-14& 2014-15. The penalties were levied 271(1)(c) of the Act vide orders dated 22.09.2022 & 12.09.2022.
At the outset, we note that the appeals of the assessee are barred by limitation by 64 days. At the time of hearing the counsel of the assessee explained the reason for delay in filing the appeal. The Ld. D.R did not raise any objection in condoning the delay. After hearing the rival contentions and perusing the materials available on record, 8/GTY/2026 & 10/GTY/2026 4. Since, we have already restored the assessment orders while adjudicating the quantum appeal of the assessee in & 09/GTY/2026 supra , therefore, the penalty levied by the Assessing Officer and confirmed by the ld. CIT(A) would also stand quashed as the very foundation of levy of penalty in the case of the assessee would not mo survive. Further, the ld. AO is given the liberty to re- initiate the penalty proceedings afresh, if required. The appeals are allowed.
Order pronounced on 13.03.2026.