KANDASAMY DURAISAMY,NAMAKKAL vs. ITO, WARD-2,, NAMAKKAL

This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 22.11.2024 for the assessment year 2012-13.

At the outset, we find that there is a delay of 3 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 29.09.2021. Further the CIT(A)’s order is also ex-parte, since there was no compliance from the assessee to the three 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.