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Facts
The assessee filed an appeal with a delay of 77 days, stating that she was unaware of hearing notices due to her business closing in 2019. The First Appellate Authority (FAA) had passed an ex-parte order as the assessee did not comply with five notices.
Held
The Tribunal condoned the delay, acknowledging the assessee's reasons. However, they deprecated the assessee's nonchalant attitude. Despite this, in the interest of justice, the matter was remitted back to the FAA for fresh adjudication with a reasonable opportunity for the assessee.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the ex-parte order passed by the FAA should be set aside and the matter remanded for fresh adjudication.
Sections Cited
250
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Income Tax Appellate Tribunal, ‘B’ (SMC
Before: SHRI GEORGE GEORGE K
आदेश/ O R D E R This appeal filed at the instance of the assessee is directed against the order of Addl/JCIT(A)-3, Kolkata dated 30.07.2024 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2016-17.
There is a delay of 77 days in filing the appeal. The assessee has filed petition for condonation of delay along with affidavit stating therein the reasons for belated filing of this appeal. The reasons stated in the affidavit for belated filing is that the assessee had closed her business during 2019 due to financial crisis and hence, she was unaware of the hearing notices and the appellate order. The assessee came to know about the order passed only when she received a phone call regarding the outstanding demand. Immediately, the assessee approached her Chartered Accountant, who advised her to approach the present counsel for filing the appeal and appeal has been filed with a delay of 77 days. On perusal of the same, I find there is sufficient reason for delay in filing this appeal before the Tribunal. Hence, I condone the delay in filing the appeal and proceed to dispose off the appeal on merits.
At the very outset, I notice that the order of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to five notices issued from the office of the First Appellate Authority.
3 -: 4. The Ld.AR for the assessee submitted that the assessee was unaware of the hearing notices issued from the office of the First Appellate Authority (FAA), since the assessee had closed her business due to financial crises. Hence, it was prayed in the interest of justice and equity, the issue may be restored to the files of the FAA as a last opportunity for proper representation of its case.
The Ld.DR submitted that adequate opportunities were provided from the office of the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed.
I have heard rival submissions and perused the materials on record. The proceedings before FAA was ex-parte, since the assessee did not respond to various notices issued. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the FAA. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the FAA. Accordingly, the matter is remitted to the files of the FAA for fresh adjudication. The FAA shall afford reasonable opportunity of
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 25th June, 2025 at Chennai.