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Facts
The assessee, an individual, failed to file a return of income for AY 2018-19. The AO reopened the assessment under Section 147, made an addition of Rs. 71,54,082/-, and completed the assessment under Section 144. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance.
Held
The Tribunal condoned the delay in filing the appeal and noted the assessee's negligence. However, in the interest of natural justice, the Tribunal decided to grant one more opportunity to the assessee to substantiate their case.
Key Issues
Whether the assessee should be granted another opportunity to present their case before the AO for fresh adjudication, despite previous non-compliance?
Sections Cited
147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 21.10.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 144 r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 08.02.2024.
There is a delay of 129 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
The assessee is an individual and has not filed the return of income for the relevant assessment year. Based on the information available, the A.O found that the assessee had sold immovable property for a consideration of Rs. 68,00,000/- and had also received rental income and foreign remittances. Since no return of income was filed, the A.O reopened the assessment. The A.O completed the assessment u/s. 144 of the Act, making an addition of Rs. 71,54,082/-, as the assessee failed to file the return of income as well as the details called for. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee did not comply with the notices issued.
The Learned Authorized Representative (Ld. A.R) contended that sufficient opportunity was not provided to the assessee either before the A.O or before the Ld. CIT(A), and both the orders were passed ex- parte. It was therefore submitted that the assessee may be granted one more opportunity to substantiate his case.
The Learned Departmental Representative (Ld. D.R) relied on the orders of the lower authorities and requested that the appeal be dismissed.
6. We have heard the rival submissions and perused the materials available on record. We find that the A.O made the addition by treating the entire sale consideration as capital gain, since the assessee did not furnish complete details including the purchase deed of the property sold. The Ld. CIT(A) also dismissed the appeal ex-parte due to non-compliance by the assessee. We note that the assessee has been negligent both before the A.O and the Ld. CIT(A). However, keeping in view the principles of natural justice, we are of the opinion that one more opportunity should be granted to the assessee to substantiate his case before the A.O. Accordingly, we set aside the impugned order and remit the matter back to the file of the A.O for denovo assessment in accordance with law, after affording reasonable opportunity of hearing to the assessee. This shall, however, subject to payment of costs of Rs.25,000/- (Twenty five thousand only). The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. The assessee is directed to appear before the A.O on the date of hearing without fail and to furnish complete details in support of his claim for fresh adjudication. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 28th day of October, 2025 at Chennai.