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Facts
The assessee, an individual and agriculturalist, filed returns for AY 2017-18 and 2018-19. The AO made additions for treating agricultural income as non-agricultural income due to lack of evidence and non-participation in proceedings. The CIT(A) upheld the AO's orders.
Held
The Tribunal condoned the delay in filing the appeals, noting reasonable cause. The Tribunal set aside the CIT(A) order and remitted the matter back to the AO for de novo assessment, providing the assessee with a reasonable opportunity.
Key Issues
Whether the assessee was provided with sufficient opportunities by the AO and CIT(A), and if the delay in filing the appeals can be condoned.
Sections Cited
144, 143(3), 143(3A), 143(3B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, AM:
These appeals by the assessee are filed against the orders of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, vide orders dated 20.02.2024 and 24.07.2024 for 2017-18 and A.Y. 2018-19 respectively. Since, the facts are identical and issues are common, for the sake of convenience, the appeals filed by the assessee are being heard together and disposed of by this consolidated order.
At the outset, we find that there is a delay of 294 and 447 days in appeals filed by the assessee & 2018/Chny/2025, for which the assessee has filed
:-2-: ITA. Nos.:2018 & 2019/Chny/2025 affidavits stating the reasons for delay, wherein, it is submitted that the assessee is engaged in spiritual services and agricultural activities and is not conversant in operating computer systems or checking emails. Hence, there was a delay in filing the appeals by the assessee. After considering the Affidavits filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeals on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeals and admit the appeals filed by the assessee for adjudication.
Brief facts of the case are that the assessee is an individual and agriculturalist and selling harvested seasonal crops in weekly market in wholesale and retail. He filed his return of income on 29.12.2017 and 27.12.2018 for the A.Y.2017-18 & 2018-19 declaring a total income of Rs.21,64,727/- and Rs.20,61,370/- respectively with the aggregate income of Rs.71,72,880/- (including agricultural income of Rs.50,08,150/-) for the A.Y.2017-18 and Rs.74,94,660/- (including agricultural income of Rs.54,33,290/-) for the A.Y.2018-19. The return of income was selected for ‘Limited Scrutiny’ under CASS to verify the assessee’s claim of large agricultural income. The AO issued various statutory notices on various dates. Since, the assessee did not participate in the assessment proceedings by not responding to the statutory notices for the A.Y.2017-18, however, the assessee submitted a submission for the A.Y.2018- 19 and the submission was considered by the Assessing Officer. The assessee has not produced any evidence/proof in respect of the assessee’s claim of agricultural income as exempted. Hence, the AO made an addition of Rs.59,45,713/- and Rs.64,98,004/- for the A.Y.2017-18 and A.Y.2018-19 respectively by treating the agricultural income shown in the return as ‘non-agricultural income’ and passed an :-3-: ITA. Nos.:2018 & 2019/Chny/2025 order dated 10.12.2019 u/s.144 of the Act for the A.Y.2017-18 and passed an order dated 16.03.2021 u/s.143(3) r.w.s 143(3A) & 143(3B) of the Act for the A.Y.2018-19.
Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC, Delhi for the A.Y.2017-18 & A.Y.2018-19.
At the outset, we observed that ld.CIT(A) has provided three opportunities each for both the appeals for the assessee to appear for hearings as detailed in paragraph 5 of the ld.CIT(A) orders to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence, the ld.CIT(A), NFAC dismissed on merits by confirming the order of the AO by passing an order dated 20.02.2024 and 24.07.2024 for the A.Y.2017-18 and 2018-19 respectively. Therefore, the ld.AR submitted that the assessee was not aware of the notices issued by the AO as well as ld.CIT(A) and hence he could not appear before the AO as well as the ld.CIT(A). In view of the above, the ld.AR prayed for one more opportunity before the AO, since the exparte order has been passed by the AO u/s.144 of the Act for the A.Y.2017-18 and evidence/proof of agricultural income for the A.Y.2018-19 was not submitted before the AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.
Per contra, the ld.DR submitted that both the Assessing Officer and the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).
:-4-: ITA. Nos.:2018 & 2019/Chny/2025 7. We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an exparte order by considering the information available with the department and the same has been dismissed by the ld.CIT(A) - NFAC due to non-participation of the assessee before the first appellate authority.
In view of the above and to meet the ends of justice we set aside the order of ld.CIT(A) and remit the matter back to the file of AO and direct the AO to denovo frame the assessment order in accordance with law, after providing reasonable opportunity to the assessee. Needless to say, the assessee to be diligent and file written submissions and relevant documents if advised so.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the court on 23rd October, 2025 at Chennai.