Loading judgment…
Facts
The assessee filed an appeal with a delay of 27 days, explaining it was due to lack of knowledge of e-assessment proceedings and a tax consultant's failure to revert. The assessee's appeal before the CIT(A) was dismissed in limine due to non-appearance, despite raising the sole ground of agricultural income exemption.
Held
The Tribunal condoned the delay, citing the assessee's reasonable cause and reliance on judicial pronouncements. The Tribunal admitted the legal issues raised by the assessee, but decided to remit them, along with the issues on merits, back to the CIT(A) for fresh adjudication.
Key Issues
Whether the Tribunal can adjudicate grounds not considered by the first appellate authority, and whether the matter should be remitted for fresh adjudication considering newly raised legal issues.
Sections Cited
147, 144, 144B, 143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to A.Y. 2015-16 is directed against the order dated 25.11.2024 framed by National Faceless Appeal Centre emanating out of Assessment Order dated 20.02.2024 passed u/s.147 r.w.s.144 r.w.s.144B of the Income Tax Act, 1961.
Registry has informed that there is delay of 27 days in filing the instant appeal before this Tribunal. Assessee has filed an affidavit explaining the reasons for delay. Contents of the same read as under :
“1. That I am an individual and agriculturalist. 2. That I am not well versed with the Tax Provisions and e- assessment proceedings.
3. That in my case, Ld. Commissioner of Income Tax has passed Appeal Order on 25th Nov 2024 Ex-party.
That due to lack of knowledge and as I am not well versed with the e-assessment proceedings, I could not submit the reply. The non- compliance was not intentional.
That when abovementioned order was received, I approached to a Tax Consultant. I assumed that he is handling the case, but he never revert it to me. This causes the delay in filling of appeal.
That there is delay of 27 days in filing of appeal. 7. That the appeal is filed on a meritorious matter and deserves to be addressed on the grounds of merits. Non allowance of the appeal would cause unnecessary hardship to the Appellant when actually the remedy is available in the law itself. 8. That the Appeal is filed on legal grounds. 9. That there is no mala fide intention in late filing the Appeal. In the light of above, the Appellant seeks your honor's mercy to condone the delay and grant the appeal as the delay was not intentional.”
On perusing the averments made in the affidavit, we are satisfied that ‘reasonable cause’ prevented the assessee to file the appeal within the stipulated time. We note that the delay is not intentional and assessee would not have gained from filing the appeal with a delay. We therefore in light of judgments of Hon’ble Apex Court in the case of Collector, Land Acquisition, Anantnag & Anr. Vs. Mst. Katiji & Ors. reported in (1987) 2 SCC 107 and in the case of Inder Singh Vs. State of Madhya Pradesh judgment dated 21.03.2025 (2025 INSC 382) condone the delay of 27 days in filing of the instant appeal before this Tribunal and admit the appeal for adjudication.
4. After carefully hearing ld. Counsel for the assessee and ld. Departmental Representative, we observe that due to non appearance of the assessee before ld.CIT(A), appeal of the assessee has been dismissed in limine by ld.CIT(A) referring to the principle embodied in the well known latin dictum “Vigilantibus Et Non Dormientibus Jura Sub Veniunt” and also placing reliance on the judgment of Hon’ble Apex Court in the case of CIT Vs. B.N. Bhattacharjee (1979) 118 ITR 461 (SC) and the judgment of Hon’ble Punjab & Haryana High Court in the case of Estate of Late Tukojirao Holkar vs. CWT 223 ITR 480 (MP). Therefore, ld. Counsel for the assessee has prayed for remitting the issues raised in the instant appeal to the file of ld.CIT(A) for afresh adjudication along with making a request to admit the legal issue raised in the additional grounds of appeal.
5. We have heard the rival contentions and perused the record placed before us. We observe that the assessee is an individual and the reassessment proceedings u/s.147 r.w.s.144 of the Act has been carried out for A.Y. 2015-16 and addition of Rs.51,19,500/- has been made as against the returned income of Rs.2,29,970/-. Income assessed at Rs.53,49,470/-. Admittedly, the assessee has not availed the opportunities granted by ld. AO resulting into passing of Best Judgment Assessment and even in the appeal filed before ld.CIT(A) assessee has raised only one ground that the assessee earns only Agricultural income which is exempt from tax and all cash deposits are from Agricultural income. However, assessee failed to appear before ld.CIT(A) and the ld.CIT(A) dismissed the assessee’s appeal in limine. Before us, assessee has raised various legal issues challenging the legality of the reassessment proceedings. We have gone through the legal issues and in view of judgment of Hon’ble Apex Court in the case of National Thermal Power Co. Ltd. v.
CIT [1998] 229 ITR 383(SC) the same are admitted for adjudication.
6. The issue of Tribunal’s power to adjudicate the ground raised
before it in second appeal which did not pass through first appeal came for consideration before the Hon’ble Delhi High Court in the case of ‘Divine Infracon Pvt. Ltd. Vs PCIT’ [2025, 171 taxmann.com
92. (Del)], wherein their Hon’ble Lordship vide para 13 have categorically held that, the Tribunal has no jurisdiction to proceed to decide the ground which did not arise from the impugned order passed by first appellate authority, irrespective of such ground was raised in first appeal or not.
Under these given facts and circumstances, since the legal issues has been raised for the first time before this Tribunal which though admitted in light of National Thermal Power Co. Ltd. vs. Commissioner of Income Tax (supra) we are of the view that the same deserves to be adjudicated by ld.CIT(A). We therefore remit back the legal issues and the issues raised on merits by the assessee for the year under consideration to the file of ld.CIT(A) for denovo adjudication. Needless to mention that in the set aside proceedings ld.CIT(A) shall afford reasonable opportunity of hearing to the assessee. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and all the grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on this 28th day of November, 2025.