VARADHACHARY PARTHASARATHY,CHENNAI vs. INCOME TAX OFFICER, NON CORP. WARD 19(4), CHENNAI, CHENNAI

Brief facts of the case are that the assessment was completed u/s 147 r.w.s 144 r.w.s 144B of the Act wherein AO had made addition of Rs.20,96,040/- on account of salary income after exemptions/deductions and Rs.1,30,868/- on account of insurance commission. The total income assessed at Rs.22,26,908/-. on a total income of Rs.7,45,050/- resulting in demand of Rs.1,92,560/-. Assessee further challenged the order of assessment u/s 147 r.w.s 144 r.w.s 144B of the Act before the ld.CIT(A) who dismissed the appeal of the assessee in limine as there was no sufficient cause for delay of 153 days in filing appeal u/s 249(3) of the Act. Aggrieved, assessee is in appeal before us.

Before the ld. Counsel for assessee submitted that the assessee had no knowledge of the notices issued. He further submitted that the assessee had medical problem during those days hence not filed the appeal in time. The ld.DR stated that the assessee is habitual defaulter in appearing before the AO hence no lenient view is to be taken in this case for condoning the delay and prayed for dismissal of appeal.

Though we concur with the submissions of Ld. Sr. DR however, keeping in mind medical exigencies prevailed at that time and the principle of natural justice, we condone the delay in filing appeal before the ld. CIT(A) and grant another opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for fresh appeal hearing on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law.