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Facts
The assessee, an agriculturist, failed to file his return of income for AY 2016-17. The AO initiated reassessment proceedings under Section 147/148 after discovering the purchase of an immovable property and cash deposits. The assessee did not participate in the assessment proceedings.
Held
The Tribunal condoned the delay in filing the appeal after finding a reasonable cause. The Tribunal noted that the assessee failed to participate in both assessment and appellate proceedings, leading to ex-parte orders.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the ex-parte assessment and appellate orders should be set aside and remanded to the Assessing Officer.
Sections Cited
147, 148, 144
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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R.RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, AM :
This appeal filed by the assessee is directed against the order passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 26.12.2024 and pertains to assessment year 2016-17.
At the outset, we find that there is a delay of 3 days in appeal filed by the assessee, for which the assessee has filed affidavit stating the reasons for delay. After considering the Affidavit filed by the assessee and also hearing
:-2-: ITA. No:668/Chny/2025 both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit the appeal filed by the assessee for adjudication.
The brief facts of the case are that the assessee is an agriculturist and having lands about 20 acres at Parapodium and Odayakulam Village of anamali Taluk in Coimbatore. The assessee had not filed his return of income for the A.Y. 2016-17. As per the Insight portal, the AO found that the assessee had purchased an immovable property for Rs.1,21,86,100/- on 01.06.2015 and has made cash deposit of Rs.50,80,000/- during the A.Y. 2016-17 in his bank account. Since, the assessee had not filed the return of income, the AO issued notice u/s.148 of the Act by reopening the assessment. The case was selected for scrutiny and statutory notices were sent by the AO. The assessee did not participate in assessment proceedings and hence the AO passed an order U/s.144 r.w.s. 147 of the Act dated 13.03.2024 by determining total income of Rs.2,48,10,920/-. Aggrieved by the order of the Assessing Officer, the assessee filed appeal before the ld. Commissioner of Income Tax (Appeals), NFAC, Delhi.
At the outset, we observed that the Ld.CIT(A) has provided four opportunities to the assessee to appear for hearings as detailed in paragraph 6.1 of the CIT(A) order to support the grounds of 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) confirmed the order of Assessing Officer with available details by passing an order dated 26.12.2024. The Ld.AR for :-3-: ITA. No:668/Chny/2025 the assessee submitted that the assessee has failed to take note of hearing notices sent through e-mail, resulting in non-cooperation of assessee during the appellate proceedings as well as assessment proceedings. It was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the Assessing Officer to complete the assessment proceedings effectively.
5. 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).
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 Assessing Officer has passed an exparte order by considering the information available with the department and the same has been dismissed by the ld.CIT(A), 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 Assessing Officer and direct the AO to denovo frame the assessment order in accordance to 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.
:-4-: ITA. No:668/Chny/2025 7. In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the court on 13th August, 2025 at Chennai.
(जॉजज जॉजज के) (एस. आर. रघुनाथा) (S. R. RAGHUNATHA) (GEORGE GEORGE K) लेखा सदस्य/ACCOUNTANT MEMBER उपाध्यक्ष /VICE PRESIDENT