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Facts
The assessee filed a return of income declaring Rs.5,10,800/-. However, on verification, it was found that the assessee sold property for Rs.3,00,000/- while it was valued at Rs.17,82,900/- and made time deposits of Rs.31,50,000/-. This led to reassessment proceedings and an addition of Rs.14,82,900/- for LTCG and Rs.31,50,000/- for other sources, resulting in a total taxable income of Rs.52,75,750/-.
Held
The tribunal held that the assessee was not given adequate opportunity to present their case before the CIT(A) and that the appeal was dismissed due to a delay in filing without proper consideration of the reasons. Therefore, the tribunal condoned the delay and remitted the matter back to the CIT(A) for fresh adjudication.
Key Issues
Whether the assessee was provided with a reasonable opportunity to present their case before the CIT(A) and if the delay in filing the appeal should be condoned.
Sections Cited
148A, 148, 143(2), 142(1), 69, 147, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, AM :
This appeal by the assessee is filed against the order of the learned Commissioner of Income Tax (Appeal), NFAC, Delhi, (in short Ld. CIT(A)) for the assessment year 2018-19, vide order dated 30.06.2025.
Brief facts of the case are that the assessee is an individual and had filed his return of income on 18.07.2018 for the A.Y.2018-19 by declaring an income of Rs.5,10,800/-. On verification of the information available with the department, the assessee sold immovable property for Rs.3,00,000/-, whereas the property was valued at Rs.17,82,900/- and made time deposits to the tune of Rs.31,50,000/- for the F.Y.2017-18. Based on the above
:-2-: ITA. No:2068/Chny/2025 information, proceedings u/s.148A were initiated and notice u/s.148 was issued on 01.04.2022. In response, the assessee filed a return of income on 07.06.2022 for A.Y.2018-19 by declaring an income of Rs.6,42,850/-. Further, statutory notices u/s.143(2) and 142(1) were issued to the assessee. Since the assessee did not participate in the assessment proceedings and not responded to the statutory notices, the AO made an addition of Rs.14,82,900/- as variation in respect of issue of Long Term Capital Gain and Rs.31,50,000/- as variation in respect of income from other sources U/s.69 of the Act and assessed Rs.52,75,750/- as taxable income and concluded the assessment u/s.147 r.w.s 144B of the Act dated 20.12.2023.
Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), NFAC on 01.05.2024.
At the outset, we observed that ld.CIT(A) has found that the assessee filed an application with a delay of 103 days and had not shown any “sufficient cause” for not presenting the appeal within 30 days from the date of service of the notice of demand and the appeal of the assessee was dismissed in limine. The ld.AR submitted that the ld.CIT(A) had not considered the reason for filing the appeal before the first appellate authority belatedly by 103 days. Hence, prayed for giving one more opportunity before the ld.CIT(A) to prosecute the case on merits.
Per contra, the ld.DR submitted that the Assessing Officer provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices in time and hence, prayed for confirming the order of the ld.CIT(A).
We have heard rival submissions and perused the materials on record. The Office of the First Appellate Authority had issued five hearing notices as shown in his order in para 6.1. It was the contention of the ld.AR that the assessee had failed to take note of hearing notices sent from the office of the :-3-: ITA. No:2068/Chny/2025 ld.CIT(A). We note that the AO has passed an order by making an addition of Rs.52,75,750/- (including TDs amounting Rs.31,50,000/- as undisclosed investment u/s.69 of the Act) as treated as taxable income and the same has been upheld by the ld.CIT(A) - NFAC due to non-participation of the assessee in the first appellate proceedings. Since, the ld.AR has assured the bench that the assessee will participate in the appellate proceedings given an opportunity again, in the interest of justice, we are of the considered view that the assessee needs to be given one more opportunity to prosecute the appeal on merits.
Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee. Therefore, we condone the delay in filing the before ld.CIT(A) as the assessee had filed the condonation of delay in his form 35 itself and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the court on 13th October, 2025 at Chennai.