MOHD NOORUL HUDA,HYDERABAD vs. ITO., WARD-9(1), HYDERABAD

Facts

The assessee's cases for AY 2016-17 and 2017-18 were reopened under Section 147, leading to assessment orders adding substantial cash deposits as unexplained money under Section 69A. The CIT(A) dismissed the assessee's appeals ex-parte for non-prosecution, leading the assessee to file appeals before the Tribunal with a 105-day delay, citing issues with email communication.

Held

The Tribunal condoned the delay in filing the appeals, acknowledging a reasonable cause. It noted that the Telangana High Court had already quashed the notices issued under Section 148A and 148 and all subsequent orders, granting liberty for revival based on the Supreme Court's decision on a pending SLP. Consequently, the Tribunal also quashed the assessment orders passed by the AO.

Key Issues

Whether the delay in filing appeals before the Tribunal should be condoned; and whether assessment proceedings initiated under Sections 147/148/148A are valid when the underlying notices have been quashed by the High Court.