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Facts
The assessee filed an appeal against the order of the CIT(A) NFAC for AY 2012-13, after a delay of 492 days. The assessment was completed ex-parte under Section 144 r.w.s. 147 of the Income Tax Act, 1961. The CIT(A) order was also ex-parte due to the assessee's non-compliance with notices.
Held
The Tribunal condoned the delay in filing the appeal, finding a reasonable cause. Despite noting the assessee's non-participation before the AO and CIT(A), the Tribunal set aside the CIT(A)'s order and remitted the matter back to the AO for denovo assessment, considering the principles of natural justice.
Key Issues
Whether the delay in filing the appeal can be condoned and whether the matter should be remitted for denovo assessment despite the assessee's non-participation.
Sections Cited
144, 147, 143(3)
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Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI ABY T VARKEY, HON’BLE & SHRI S. R. RAGHUNATHA, HON’BLE
(�नधा�रण वष� / Assessment Year: 2012-13) Vs Shri Sundar Rayar, The Income Tax Officer, 2, VOC Street, Ward 3, Roja Nagar, Puducherry. Arumbathapuram, Puducherry – 605 010. PAN : BTFPS 2282H (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Shri T.S.Lakshmi Venkatraman, FCA ��यथ� क� ओर से/Respondent by : Shri Keerthi Narayanan, JCIT सुनवाई क� तार�ख/Date of Hearing : 24.04.2025 घोषणा क� तार�ख/Date of Pronouncement : 05.05.2025 आदेश / O R D E R
PER S R RAGHUNATHA, AM:
This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 04.07.2023 for the assessment year 2012-13.
At the outset, we find that there is a delay of 492 days in appeal filed by the assessee, for which petition for condonation of delay along with reasons for delay has been filed. After considering the petition 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 appeal filed by the assessee for adjudication.
At the very outset, we notice that the assessment has been completed on best judgment basis u/s.144 r.w.s. 147 of the Income Tax Act, 1961 (hereinafter the ‘Act’) on 05.11.2019. Further the CIT(A)’s order is also ex-parte, since there was no compliance from the assessee to the five notices issued from the office of the First Appellate Authority.
The Ld.AR 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. 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 CIT(A) and there is no
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 CIT(A). We note that the Assessing Officer has also passed exparte order by considering the information available with the department 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. Since the assessee has failed to participate both before the AO as well as the appellate proceedings, we levy the cost of Rs.10,000/- (Rupees Ten Thousand only) to be paid to State Legal Aid Authority, Hon’ble High Court of Madras and produce proof of payment of cost to the Registry within 30 days from the date of receipt of this order. 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 providing reasonable opportunity to the assessee.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 5th May, 2025 at Chennai.