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Facts
The assessee's appeal for AY 2017-18 arises from an order of the CIT(A) which upheld an assessment framed by the AO on a best judgment basis. The appeal faced a significant delay of 1039 days, for which condonation was sought by the assessee.
Held
The Tribunal admitted the appeal despite the delay, citing the principle of natural justice. The impugned order was set aside, and the assessment was restored to the AO for fresh consideration, subject to a cost of Rs. 10,000/- to be deposited by the assessee.
Key Issues
Whether to condone the significant delay in filing the appeal by the assessee and restore the assessment for fresh consideration.
Sections Cited
144
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Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आयकर अपीलीय अिधकरण “ए” "ायपीठ चे"ई म"। IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHENNAI माननीय "ी एबी टी. वक", "ाियक सद" एवं माननीय "ी मनोज कुमार अ'वाल ,लेखा सद" के सम)। BEFORE HON’BLE SHRI ABY T. VARKEY, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकरअपील सं./ (िनधा*रण वष* / Assessment Year: 2017-18) Shri Ponnusami Saravanan ITO 74/3, Prop. Umadevi Enterprises, Ward-3 बनाम/ Madhu Complex, Vellore. Vs. Kaniyambadi Street, Vanniyambadi Tk Vellore District-635 751. "थायीलेखासं./जीआइआरसं./PAN/TAN No. CGBPS-4969-K (अपीलाथ"/Appellant) : (""थ" / Respondent) अपीलाथ"कीओरसे/ Appellant by : Shri D. Anand (Advocate) - Ld. AR ""थ"कीओरसे/Respondent by : Smt. D. Babitha (JCIT) - Ld. Sr. DR सुनवाईकीतारीख/Date of Hearing : 21-01-2025 घोषणाकीतारीख /Date of Pronouncement : 03-02-2025 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 30-10- 2021 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 18-11-2019. The registry has noted delay of 1039 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of the assessee. It has been submitted that the assessee was not conversant with the technology and transmission of order through portal or email. The same came to the knowledge of the assessee only when he contacted his auditor during first week of June, 2024 for finalizing the return of income for AY 2024-25. The Ld. AR prayed for admission of appeal and also prayed to restore the assessment back to the file of Ld. AO. The same has been opposed by Ld. Sr. DR.
Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to admit the appeal and grant another opportunity to the assessee to substantiate its case. Therefore, we set aside the impugned order and restore the assessment back to the file of Ld. AO for fresh consideration. The same shall come at a cost of Rs.10,000/- which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same shall be furnished by the assessee to Ld. AO who shall proceed for de novo assessment. The assessee is directed to substantiate its case forthwith. 3. The appeal stand allowed for statistical purposes. Order pronounced on 3rd February, 2025 (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) "ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे1ई Chennai; िदनांक Dated :03-02-2025 DS आदेशकीKितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. ""थ"/Respondent 3. आयकरआयु:/CIT Chennai. 4. िवभागीय"ितिनिध/DR 5. गाड?फाईल/GF