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Facts
The assessee filed an appeal after a delay of 320 days due to severe health ailments and lack of conversant with electronic proceedings during the Covid-19 pandemic. The original assessment was ex-parte due to non-compliance with hearing notices.
Held
The Tribunal condoned the delay considering the genuine reasons provided. It was held that the assessee should be given an opportunity to present their case, and the matter was restored to the AO.
Key Issues
Whether the delay in filing the appeal should be condoned and whether the ex-parte assessment order should be set aside to allow the assessee to present their case.
Sections Cited
250, 147, 148, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against CIT(A) - NFAC order dated 23.11.2023, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2012-13.
There is a delay of 320 days in filing this appeal. The assessee has filed a petition for condonation of delay along with affidavit stating therein the reasons for belated filing of this appeal. The reason stated for belated filing of this appeal is that assessee was suffering from severe health ailments i.e., L-5 Listhesis, disc bulge and Cervical Spondylosis, due to which the assessee was unable to follow the Chartered Accountant to present the appeal. The Ld. AR submitted that owing to health issues, lack of conversant with electronic proceedings and the period which pertains to fag end of Covid-19, there was delay in the filing this appeal. Therefore, the Ld.AR pleaded for condonation of delay. The medical certificates to effect that assessee was suffering from the above ailments are placed on record.
After perusing reasons stated in the affidavit and medical certificate issued by Doctor, we are of the view that there is genuine and sufficient reason shown for belated filing of this appeal and no latches could be attributed to the assessee. Therefore, we condone the delay in filing this appeal and proceed to dispose off the appeal on merits.
At the very outset, we notice that the appeal of the assessee has been dismissed ex-parte qua assessee. During assessment proceedings, the AO issued three hearing notices dated 29.09.2020, 10.03.2021 and 10.08.2021 requiring the assessee to furnish reply. Due to Coivid-19 pandemic period, the assessee could not comply with the hearing notices issued by AO. However, the AO completed the assessment by passing ex-parte order dated 22.09.2021. During appellate proceedings, the assessee furnished Form-35 before the CIT(A), requesting an option in the column ‘not to send hearing notices through e-mail’. However, Office of the CIT(A) has issued hearing notices through e-mail. According to the Ld.AR, the assessee is not computer literate and lack of conversant with electronic communication. Consequently, appellate proceedings before the CIT(A) remained ex-parte, against which the assessee is in further appeal before us.
The Ld.AR for the assessee pleaded for one more opportunity in the interest of justice and equity, to the assessee to file necessary documents/evidences in support of the claim of the assessee by remitting the matter back to the files of AO.
The ld.DR supported the order of the CIT(A).
We have heard rival submissions and perused the materials on record. We find that the AO has passed an ex-parte order during the Covid-19 period for non-appearance of the assessee. During the appellate proceedings, the Office of the First Appellate Authority had issued seven notices only through registered mail, despite the assessee made a request option in Form-35 filed before him ‘not to send communication through e-mail’. It is the claim of Ld.AR that the assessee is not computer literate and not well versed in electronic communication and thus, the assessee was unaware of hearing notices sent through e-mail and the CIT(A) passed ex-parte order without going into merits of the case. In the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent his case and accordingly, the issues raised in this appeal are restored to the files of the AO. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 20th February, 2025.