MANI SHANTHI,NAMAKKAL vs. ITO, CIRCLE-1,, ERODE

This appeal filed by the assessee is directed against the order dated 12.10.2023 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi for the assessment year 2020-21.

We find that this appeal is filed with a delay of 393 days. The assessee filed an affidavit for condonation of delay stating the reasons. Upon hearing both the parties and on examination of the said affidavit, we find the reasons stated by the assessee are bonafide, which really prevented in filing the appeal in time. Thus, the delay is condoned and admitted the appeal for adjudication.

The only effective ground raised by the assessee is that the order of the first appellate authority is liable to be set aside, which was not decided on merits and more particularly in the absence of communication of the hearing notices to the assessee in the latest mail id given in the return of income.

Brief facts of the case are that the assessee is an individual and filed the return of income on 23.01.2021 declaring total income at ₹.35,99,480/- for AY 2020-21. The case was selected for limited scrutiny under CASS to verify the issue of agricultural income and issued notice under section 143(2) of the Income Tax Act, 1961 [“Act” in short] dated 29.06.2021. Thereafter, notices under section 142(1) of the Act were issued. Further, the Assessing Officer issued notice under section 144 of the Act dated 10.03.2022 and also issued a show-cause notice dated 23.08.2022. There was no compliance to any of the above notices issued by the Assessing Officer. The Assessing Officer noted from the return of income that the assessee has shown gross agricultural receipts at ₹.29,56,220/- and claimed the same as exempt. Since the assessee did not file any details in support of the claim, the Assessing Officer disallowed the agricultural income of ₹.29,56,220/- and added to the total income of the assessee. On appeal, the ld. CIT(A) confirmed the addition made by the Assessing Officer and dismissed the appeal of the assessee for non-compliance to the hearing notices issued by the ld. CIT(A).