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Facts
The assessee filed an appeal before the ITAT with a delay of 613 days due to health issues. The assessment involved an addition of Rs. 71,03,278/- on account of unexplained cash credit. The assessee had not participated in the proceedings before the CIT(A) despite multiple opportunities.
Held
The Tribunal condoned the delay in filing the appeal after considering the assessee's health reasons. The Tribunal set aside the order of the CIT(A) and remitted the matter back for fresh adjudication, providing one more opportunity to the assessee.
Key Issues
Whether the delay in filing the appeal can be condoned due to genuine health reasons, and whether the assessee should be granted another opportunity before the CIT(A) despite previous non-participation.
Sections Cited
143(2), 68
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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 by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the same assessment year 2017-18, dated 15.05.2023.
At the outset, we find that there is a delay of 613 days in appeal filed by the assessee, for which, a petition for condonation of delay in filing of the appeal along with Affidavit explaining the reasons for delay, has been filed by the assessee. The ld.AR submitted that the delay of 613 days in filing second appeal before ITAT, Chennai is neither willful nor wanton but due to the fact that the :-2-: ITA. No:985/Chny/2025 assessee was suffering from the heart problem from the year 2020 and the assessee had Coronary Artery Disease procedure on 16/10/2021 and also on 16/08/2024 and the assessee was required complete bed rest and hence he could not meet auditor to hand over papers to file second appeal before ITAT, Chennai and after the department had issued notice for the payment of demand pending for the AY 2017-18 and thereafter the assessee approached an Advocate who had facilitated in filing the second appeal before the ITAT. Hence, there was a delay in filing the appeal by the assessee. After considering the Affidavit filed by the assessee and also hearing 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 case selected for scrutiny through CASS and notice u/s.143(2) of the Income Tax Act, 1961 (the Act) was issued on 28.09.2018 and duly served. After considering the details and submissions made by the assessee, the assessment was completed on 13.12.2019 at an assessed income of Rs.82,96,140/- and that the addition was made on account of unexplained cash credit u/s.68 of the Act amounting to Rs.71,03,278/-. Accordingly, a sum of Rs.71,03,278/- was added back to the income of the assessee.
Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the ld.CIT(A), NFAC.
:-3-: ITA. No:985/Chny/2025 5. The assessee did not participate in the appeal proceedings in spite of providing four opportunities by the ld.CIT(A) from 12.01.2021 to 28.02.2023 as noted in paragraph 4 of the ld.CIT(A) order. Hence, the ld.CIT(A) passed an order dated 13.12.2019 by confirming the Assessing Officer’s order and dismissed the appeal of the assessee. Aggrieved by the order of the ld. CIT (A), the assessee is in appeal before us.
Before us, the ld.AR submitted that the assessee could not participate in the appellate proceedings due to his severe health problems and prayed for one more opportunity to prosecute the appeal before the ld.CIT(A).
Per contra, the ld.DR submitted that the assessee is negligent in responding to the notices of the department and hence prayed for confirming the order of the ld.CIT(A).
We have heard rival contentions and noticed that the ld.CIT(A) has passed an exparte order by considering the information available and based on the AO’s order without the participation of the assessee in the first appellate proceedings. We note the assessee has not participated in the appellate proceedings though the sufficient opportunities were provided by the ld.CIT(A).
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 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,
:-4-: ITA. No:985/Chny/2025 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 21st July, 2025 at Chennai.