NAVAL KISHORE AGARWAL,CHENNAI vs. ACIT, CPC, BANGALORE

घोषणा की तारीख /Date of Pronouncement : 25.08.2025 आदेश / O R D E R PER AMITABH SHUKLA, A.M :

This appeal is filed by the assessee against the order bearing DIN & Order No.ITBA / APL / S / 250 / 2025-26 / 1075627599(1) dated 15.04.2025 of the Learned Commissioner of Income Tax [herein after “CIT(A), Adll/JCIT(A)-7, Delhi, for the assessment year 2020-21. The reference to the word “Act” in this order hereinafter shall mean the Income Tax Act, 1961 as amended from time to time.

2.0 At the outset the Ld. Counsel for the assessee informed that the Ld. First Appellate Authority has passed an ex-parte order thereby confirming the assessment order u/s 143(1) dated 18.12.2021 of the CPC and that the appeal was dismissed for being filed late without any justified grounds. It was pleaded that the assessee had committed delay of 314 days and for which it had justified grounds. It was stated that the assessee is not conversant with faceless working of the department. The assessee also submitted that it was under belief that Supreme Court has extended the timeline for filing of applications on account of Covid-19 pandemic. The appellant further contested the addition made u/s 10(2A) was agitated by way of an application u/s 154 which is still pending. The Ld.CIT(A) held that assessee did not have a valid reason for delay and proceeded to dismiss the appeal. The Ld. Counsel submitted the matter may be restored to Ld. CIT(A) for readjudication on its merits and that it shall make full compliance to the notices of Ld. CIT(A). In support of its contentions, the Ld. Counsel filed a paper book. 3.0 Per contra, the Ld.DR relied upon the order of lower authorities. It was however contended that costs be imposed upon the assessee for wasting the precious time of the courts. 4.0 We have heard rival submissions in the light of material available on records. There is no denying the fact that the assessee has filed delayed appeal before the Ld.First Appellate Authority. We are Page - 2 - of 4 conscious that no litigant benefits by non-prosecution of its case. We have also noted that issue at hand involves, adjustment u/s 143(1) which is an exempt item u/s 10(2A). Be that as it may be we are of the considered view that in the interest of justice the matter deserves remission to Ld.First Appellate Authority. Accordingly, we set aside the order of Ld.First Appellate Authority and direct the Ld.CIT(A) for fresh adjudication of the appeal after condoning the delay and giving due opportunity of being heard. He shall pass a speaking order in accordance with law. The assessee shall be bounden to make all compliances to the statutory notices issued by the Ld.CIT(A). This order is however subject to a cost of Rs.5000/-(Rupees five thousand only) to be paid by the assessee to the Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within 30 days of the receipt of this order. Accordingly, all the grounds of appeal raised by the assessee are therefore allowed for statistical purposes.