MRS. SUGANTHI,TRICHY vs. ITO, WARD-2(1), TRICHY

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ITA 2026/CHNY/2025Status: DisposedITAT Chennai17 September 2025AY 2019-20Bench: SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA (Accountant Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal before the FAA, considering the reason provided by the assessee (auditor's demise) as reasonable. The Tribunal set aside the order of the FAA and remitted the matter back to the AO for fresh adjudication.

What were the facts?

The assessee's appeal was dismissed in limine by the First Appellate Authority (FAA) due to a 153-day delay. The assessee's auditor passed away, leading to non-receipt of notices during assessment proceedings, and thus the assessee was unaware of the assessment order and the penalty notice. The FAA rejected the condonation of delay, holding no reasonable cause.

What were the issues?

Whether the delay in filing the appeal before the First Appellate Authority was reasonable and should be condoned? Whether the matter should be restored to the Assessing Officer for fresh adjudication?

Which sections of the Income-tax Act were involved?

Section 250,Section 147,Section 144,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA

Hearing: 17.09.2025Pronounced: 17.09.2025

आदेश /O R D E R

PER GEORGE GEORGE K, VICE PRESIDENT:

1.

This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 13.06.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2019-20.

2. At the very outset, we notice that First Appellate Authority (FAA) had dismissed the appeal of the assessee in limine without adjudicating on merits. The FAA held that there is a delay of 153 days in filing the appeal before him and there is no reasonable cause for condoning the same. Further, we also notice that the assessment has been completed on best judgment assessment u/s. 147 r.w.s. 144 r.w.s.144B of the Act.

3.

On perusing the order of FAA, we noted that the assessee has filed the reason for delay in filing the appeal before him. The FAA had reiterated the reason for delay submitted by the assessee at para 2.7. The assessee has submitted that her auditor had passed away on 13.10.2023. All notices/communications during the assessment proceedings were sent to the auditor’s email id. Therefore, the assessee was unaware of the notices and order passed by the AO. The assessee came to know about the order being passed, only when she received the hard copy of penalty notice. Immediately, the assessee found a new auditor and filed the appeal. Therefore, there was a delay in filing the appeal before him. However, the FAA rejected the assessee’s request for condonation by holding that there is no reasonable cause and dismissed the appeal of the assessee. In our view, the reason cited by assessee before FAA seems quite reasonable and hence, we condone the delay before FAA. Therefore, we set aside the order of FAA.

4. We also note that the order passed by the AO is also best judgment since assessee has not responded to the notices issued from the office of the AO. The Ld.AR stated the same reason that the notices were sent to assessee’s auditor e-mail id, who had passed away during the assessment proceedings. Therefore, assessee was unaware of the hearing notices and hence, could not appear before the AO during the assessment proceedings. Therefore, the Ld.AR prayed that the issue may be restored to the files of the AO as a last opportunity for proper representation of his case. In the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO as a last opportunity. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.

5.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 17th September 2025 at Chennai.

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