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Facts
The assessee, a small agriculturist residing in a remote village, faced an ex-parte assessment order. The appeal before the CIT(A) was dismissed due to a delay in filing, which was attributed to lack of digital access and awareness. The assessee's authorized representative argued for a fresh opportunity to present the case due to these hardships and violation of natural justice.
Held
The Tribunal condoned the delay in filing the appeal, considering the assessee's circumstances and lack of digital literacy. It also set aside the ex-parte assessment order and restored the matter to the Assessing Officer for a de novo assessment, granting the assessee a reasonable opportunity to be heard.
Key Issues
Whether the delay in filing the appeal should be condoned due to the assessee's genuine hardships and lack of awareness, and whether the ex-parte assessment order should be set aside for want of natural justice.
Sections Cited
271(1)(c)
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Income Tax Appellate Tribunal, ‘B’ BENCH, BANGALORE
Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY
PER WASEEM AHMED, ACCOUNTANT MEMBER:
These appeals by the assessee are directed against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated 07/01/2025 and 16-07-2024 bearing DIN No. ITBA/NFAC/S/250/2024- 25/1071961994(1) and ITBA/NFAC/S/250/2024-25/1066744926 (1), for the assessment year 2014-15.
2. In the present case, the learned CIT(A) dismissed the appeal of the assessee on the ground of delay of approximately 10½ months in filing the appeal, stating that the delay had not been adequately explained. Although the assessee had indicated in Form 35, the memo of appeal that an explanatory letter was filed, the ld. CIT(A) noted that no such letter was found on record, and hence declined to condone the delay.
Being aggrieved by the order of learned CIT-A, the assessee is in appeal before us.
Before us, the learned Authorized Representative submitted that the assessee is a small agriculturist residing in a remote village, with no access to digital facilities such as a computer or a personal email ID. The email ID mentioned in Form 35 was provided by a tax consultant and not personally known to the assessee. Owing to these genuine hardships and lack of awareness, the assessee could not respond promptly or pursue the matter diligently within the stipulated time.
4.1 It was further submitted that the assessment order was passed ex parte without granting adequate opportunity to the assessee, thereby violating the principles of natural justice. The learned AR argued that the assessee has a strong case on merits and should be given a fair chance to present her case both at the assessment and appellate levels.
4.2 On the other hand, the learned Departmental Representative (DR) did not raise any objection to the matter being remanded for fresh consideration by the CIT(A) as per law.
Considering the totality of circumstances, including the lack of infrastructure, limited literacy in digital matters available with the assessee, and the fact that the assessment itself was framed ex parte, we are of the view that the delay in filing the appeal deserves to be condoned in the interest of substantial justice. Accordingly, we condone the delay in filing the appeal before the CIT(A). Furthermore, since the assessment was also completed without proper participation by the assessee, we find it appropriate to set aside the entire matter to the file of the Assessing Officer for de novo assessment after granting the assessee a reasonable opportunity of being heard.
5.1 The assessee is directed to cooperate with the Assessing Officer in the fresh proceedings and to avoid any unnecessary adjournments. In view of the above, the appeal of the assessee is allowed for statistical purposes with a direction to the AO to re-adjudicate the matter afresh in accordance with law after providing due opportunity to the assessee.
In the result, the appeal of the assessee is allowed for statistical purposes.
271(1)(c) of the Income Tax Act, since the related quantum appeal has been restored to the AO for fresh adjudication, we similarly set aside this penalty appeal to the AO for reconsideration in . accordance with law. Accordingly, the grounds of appeal are also allowed for statistical purposes.
In conclusion, both appeals filed by the assessee are allowed for statistical purposes.