PANINEEYA SANSKRIT COLLEGE TRUST,HYDERABAD vs. INCOME TAX OFFICER (EXEMPTIONS)-3, HYDERABAD

The assessee has raised the following grounds :

First of all, it is seen that there is a delay of 209 days in filing of the appeal before us for which the assessee has filed a condonation petition along with an affidavit explaining the reasons for delay. After hearing the Learned Department Representative (“Ld. DR”) and considering the reasons given by the assessee and in the interest of justice, we condone the delay of 209 days in filing the appeal before the ITAT. Accordingly, we admit the appeal for adjudication on merits.

The Learned Authorised Representative (“Ld. AR”) submitted that the assessee had filed appeal before the Ld. CIT(A) against the order passed by Learned Assessing Officer (“Ld. AO”)for A.Y. 2014-15 u/s.143(3) of the Income Tax Act, 1961 (“the Act”) on 29.12.2016. The Ld. AR further submitted that, the Ld. CIT(A) issued a single notice dated 22.02.2021 and without granting any further opportunity, dismissed the appeal of the assessee exparte. The Ld. AR contended that, sufficient opportunity was not provided to the assessee to present their case before the Ld. CIT(A) and as a result, the assessee could not prosecute the appeal on merits. He also submitted that the assessee had no intention of avoiding compliance and could not derive any benefit by not making submission before the Ld. CIT(A). The Ld. AR, therefore, prayed before the bench for providing one more opportunity to the assessee so that the case can be properly prosecuted on merits by providing necessary documentary evidences before the Ld. CIT(A).

Per contra, the Ld. DR opposed the granting of any further opportunity to the assessee.

We have heard the rival contentions and also gone through the record in the light of the submissions made by either side. It is observed that the Ld. CIT(A) issued first notice on 22.02.2021 and passed the order on 03.05.2024, without providing any further opportunity to the assessee. Such a long gap between the issuance of notice and the passing of order, without giving the assessee an adequate opportunity to be heard, violate the principle of natural justice. It is a settled position of law that the assessee should be given a reasonable opportunity to present their case before any adverse order is passed. Considering the facts and circumstances of the case and in the interest of justice, we set aside the impugned order of Ld. CIT(A) and remand the matter back to the file of Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is directed to grant the assessee a reasonable opportunity to present their case and furnish the necessary documentary evidences in support of their claim. The assessee is also directed to ensure compliance by filing the necessary evidences /