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Facts
The assessee filed an appeal for AY 2017-18 after a delay of 473 days, which was caused by a real-time alert. The assessment order and the order of the CIT(A) were passed ex-parte due to non-compliance with notices.
Held
The Tribunal condoned the delay, considering the reasons provided by the assessee. The Tribunal, in the interest of natural justice, set aside the orders of the AO and CIT(A) and remitted the matter back for de novo adjudication, subject to payment of costs.
Key Issues
Whether the delay in filing the appeal is condonable and whether the assessee should be granted another opportunity for hearing before the AO in the interest of natural justice.
Sections Cited
144, 69A
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 31.10.2023 in the matter of assessment framed by the Assessing Officer [AO] u/s. 144 of the Income-tax Act,1961 (hereinafter “the Act”) on 27.09.2019.
There is a delay of 473 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons that the delay was primarily caused due to a real-time alert, which prevented timely action on the matter. We have considered the petition/affidavit of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is hereby condoned.
At the outset, the Ld. Authorized Representative submitted that the assessment order in this case has been passed ex-parte u/s 144 and the Ld. CIT(A) has also dismissed the appeal ex-parte, therefore one more opportunity be granted to the assessee to substantiate his case before the A.O.
On the other hand, the Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex-parte as the assessee has been non-compliance with the notices issued.
We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has confirmed the additions made by the A.O of cash deposits of Rs.10,62,000/- u/s. 69A of the Act, and estimate of business income of Rs. 72,292/-, due to the non-compliance of the notices issued. The assessment order has also been passed ex-parte.
In our considered opinion, and keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O subject to payment of costs of Rs.5,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O for denovo adjudication. We also direct the assessee to appear before the A.O on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 15th day of July, 2025 at Chennai.