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Facts
The assessee, a trust, filed its return of income declaring Nil income. The AO made an addition of Rs.41,32,718/- treating the entire receipts as taxable income, denying benefits under Sections 11 & 12. The CIT(A) dismissed the appeal ex-parte due to non-response to notices.
Held
The Tribunal condoned the delay in filing the appeals and restored both the quantum appeal and the penalty appeal to the file of the CIT(A) for denovo adjudication on merits, subject to payment of costs.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without adjudicating on merits, and if the assessee's delay in filing the appeal and response was due to sufficient cause.
Sections Cited
144, 11, 12, 270A
AI-generated summary — verify with the full judgment below
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 two appeals filed by the assessee for Assessment Years (AYs) 2018-19 arises out of the order of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 06.01.2025.
(Quantum Appeal): 2. There is a delay of 667 days in filing the appeal by the assessee. The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. We have considered the & 1005/Chny/2025 :- 2 -: 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.
The assessee is a trust and filed its return of income on 21.09.2018, declaring a total income of Nil. The A.O passed assessment order under section 144 of the Act, treating the entire receipts of Rs.41,32,718/- as taxable income, denying the benefit of sections 11 & 12 of the Act. On appeal, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee had not responded to the notices issued between 18.01.2023 and 22.02.2023.
Before us, the Learned Authorized Representative (AR) submitted that the assessee could not appear before the Ld. CIT(A) as the notices were sent to the email ID of a former employee, and the assessee became aware of the proceedings only upon receipt of the penalty order. It was contended that the Ld. CIT(A) passed the order ex-parte without adjudicating the issues on merits. Accordingly, the AR requested that one more opportunity be granted to the assessee to present its case.
& 1005/Chny/2025 :- 3 -:
Ld DR has filled adjournment petition , which was rejected as the case was listed as simple case , where Ld CIT(A) has passed order ex parte.
5. 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 addition of Rs.41,32,718/- total receipts was confirmed solely due to non-compliance by the assessee, without examining the claim of exemption u/s. 11 & 12 of the Act on merits. In the interest of justice, we restore the matter to the file of the Ld. CIT(A) for denovo adjudication, subject to the 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 Ld. CIT(A). 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 Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co- operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail.
& 1005/Chny/2025 :- 4 -:
There is a delay of 07 days in filing the appeal by the assessee.
The assessee has filed condonation petition/affidavit stating the reasons for delay in filing the appeal. 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.
This appeal relates to the penalty levied u/s. 270A of the Act, which was dismissed ex-parte by the Ld. CIT(A) due to non- compliance by the assessee. Since the quantum appeal has already been restored to the file of the Ld. CIT(A), this penalty appeal is also restored to the file of the Ld. CIT(A) for fresh adjudication.
Accordingly, we set aside the orders of the AO and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) for adjudication on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee. We also direct the assessee to co-operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail.
& 1005/Chny/2025 :- 5 -:
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on 26th day of June, 2025 at Chennai.