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Facts
The assessee's assessment for A.Y. 2017-18 was completed ex-parte by the AO under Section 144, with an addition under Section 69C, due to non-participation in proceedings. The Ld. CIT(A) also passed an ex-parte order confirming the addition as the assessee failed to respond to notices. The assessee then filed an appeal to the ITAT with a delay of 534 days, citing unfamiliarity with the electronic regime and incorrect email ID for notices.
Held
The ITAT condoned the delay in filing the appeal, acknowledging a reasonable cause. It set aside the Ld. CIT(A)'s order and remitted the matter back to the Assessing Officer for a de novo assessment, directing that a reasonable opportunity be provided to the assessee for representation.
Key Issues
Condonation of delay in filing appeal; validity of ex-parte assessment and appellate orders due to assessee's non-participation and issues with communication of notices.
Sections Cited
144, 69C
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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S.R. RAGHUNATHA
आयकर अपीलीय अिधकरण,‘ बी’ �ायपीठ,चे�ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI �ी मनु कुमार िग�र, �ाियक सद� एवं �ी एस.आर.रघुनाथा, लेखा सद� के सम� BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 770/Chny/2025 िनधा�रण वष� / Assessment Year: 2017-18 Raja Sekhar Tadepalli, DCIT, No.4/6 FOA & FOB, vs. Corporate Circle -2(2), Jayaram Building, Chennai. United India Colony, 2nd Cross Street, Kodambakkam, Chennai – 600 024. [PAN:AAHPR-9960-R] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से/Appellant by : Mr. S. Girish Kumar, Advocate ��थ� की ओर से/Respondent by : Ms. Gouthami Manivasagam, J.C.I.T. सुनवाई की तारीख/Date of Hearing : 05.06.2025 घोषणा की तारीख/Date of Pronouncement : 12.06.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:
This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2017-18, dated 25.07.2023.
At the outset, we find that there is a delay of 534 days in appeal filed by the assessee, for which the assessee has filed affidavit stating the reasons for delay, wherein, it is submitted that the assessee is not conversant with the electronic regime and was not aware about the completion of proceedings before the ld. CIT(A), since all notices were sent to email ID, other than the email id
:-2-: ITA. No.:770/Chny/2025 mentioned in the form 35. Further the order of the ld.CIT(A) was come to the knowledge of the assessee, when he received the notice under penalty proceedings. Hence, there was a delay in filing the appeal by the assessee. After considering the Affidavit filed by the assessee and also hearing both the parties, we find that there is a reasonable cause for the assessee in not filing appeal on or before the due date prescribed under the law and thus, in the interests of justice, we condone delay in filing of appeal and admit the appeal filed by the assessee for adjudication.
The brief facts of the case are that the assessee is an individual had filed his return of income on 05.11.2017 for the A.Y. 2017-18 admitting a total income of Rs.43,82,700/-. He is a director of M/s.Jayaraj International Pvt ltd. The case was selected for limited scrutiny under CASS and accordingly the statutory notices were issued to the assessee. However, the assessee did not participate in assessment proceedings, otherthan filing the preliminary documents along with Power of attorney to his CA to appear before the AO. Since the assessee failed to participate in assessment proceedings, the assessment was concluded u/s.144 of the Act dated 23.12.2019, by making an addition of credit card payments to the tune of Rs.5,88,995/- u/s.69C of the Act.
Aggrieved by the order of the AO assessee preferred an appeal before the ld.CIT(A),NFAC, Delhi. However, the assessee did not respond to any of the four notices issued by the ld.CIT(A) from 06.08.2020 to 10.07.2023 as per para 4.1 of the ld.CIT(A) order. Hence, the ld.CIT(A) passed an exparte order dated 25.07.2023 by confirming the order of AO and dismissed the appeal of the assessee.
:-3-: ITA. No.:770/Chny/2025
The Ld.AR for the assessee submitted that the assessee has failed to take note of hearing notices sent through e-mail, resulting in non-cooperation of assessee during the appellate proceedings as well as assessment proceedings. 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 offices of the AO and the ld.CIT(A) 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 Office of the First Appellate Authority had issued four hearing notices. It was the contention of the ld.AR that the assessee had failed to take note of hearing notices sent from the office of the ld.CIT(A) as the notices were sent to different email ID. We note that the AO has also passed an exparte order by considering the information available with the department along with few information and documents submitted by the assessee and made an addition and the same has been upheld by the ld.CIT(A) - NFAC due to non- participation of the assessee in the first appellate proceedings. Accordingly, in the interest of justice, we set aside the order of the ld.CIT(A) and remit the matter back to the file of Assessing Officer by relying on the decision of the Hon’ble Supreme Court in the case of Tin Box Company vs CIT, [2001] 249 ITR 216 (SC) and direct AO to denovo frame the order in accordance to law, after
:-4-: ITA. No.:770/Chny/2025 providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 12th June, 2025 at Chennai.