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Facts
The assessee filed appeals against orders of the CIT(A), NFAC, for Assessment Years 2015-16 & 2018-19. There was a delay of 158 days in filing these appeals, attributed to the assessee's prolonged illness and lack of understanding of tax procedures, as he was illiterate and relied on an accountant.
Held
The Tribunal condoned the delay, citing the assessee's ill health and lack of literacy as sufficient reasons. It noted that the assessment orders were ex-parte best judgment assessments due to non-compliance with notices.
Key Issues
Whether the delay in filing appeals should be condoned considering the assessee's illiteracy and health issues, and whether the ex-parte best judgment assessments should be set aside for fresh adjudication.
Sections Cited
250, 147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA
आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed at the instance of the assessee are directed against two different orders of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, both dated 21.08.2024 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2015-16 & 2018-19.
& 1000/CHNY/2025 2. There is a delay of 158 days in filing these appeals. The assessee has filed affidavits for condonation of delay stating therein the reasons for belated filing of this appeal. The reasons stated in the affidavit for belated filing is that, the assessee was not well and due to prolonged illness, he was under medical observation and was not in a position to respond or look into any hearing notices issued during appeal proceedings nor file appeal before the Tribunal with time allowed. The assessee has produced medical certificate in support of his contention. On perusal of the aforesaid reason stated, we are of the view that the assessee cannot be faulted for non-filing the appeal on time. There is sufficient reason and no latches can be attributed to the assessee for belated filing of this appeal. Hence, we condone the delay in filing the appeal and proceed to dispose off the appeal on merits.
At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to various notices issued from the office of the First Appellate Authority. Further, we also note that the assessments have been completed on best judgment basis u/s.147 r.w.s. 144 of the Act.
The Ld.AR for the assessee submitted that the assessee has studied only upto 3rd standard and not being literate and having technical knowledge of income tax laws, procedure, the assessee was & 1000/CHNY/2025 entirely depended on a local accountant for maintaining records and filing the returns. The assessee relied on his accountant to assist in appellate proceedings. Only after passing the order, the assessee was informed that no action was taken for notices issue. Further, the assessee was not well and due to prolonged illness, he was under medical observation and hence, not in a position to respond to notices issued during the course of assessment and appellate proceedings. The LR has produced medical certificate in support of his contention. The Ld.AR further submitted that since assessee being illiterate has not filed his return of income and the assessments have been completed on best judgment basis u/s.144 of the Act. Hence, it was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case.
The ld.DR submitted that adequate opportunities were provided from the office of the FAA and AO and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed.
We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA were ex- parte, since the assessee did not respond to various notices issued and the assessment orders are best judgment assessments u/s.144 of the & 1000/CHNY/2025 Act since assessee has not filed his return of income. We note that the assessee was not well during the assessment and appellate proceedings. However, we strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the FAA & AO. 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 AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 23rd June, 2025 at Chennai.