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Facts
The assessee, a partnership firm, failed to appear before the AO due to the COVID-19 pandemic, resulting in an ex-parte assessment order and penalty. The appeal to the CIT(A) was filed with delay, primarily attributed to the pandemic and office closure.
Held
The Tribunal condoned the delay in filing the appeal before the CIT(A). Since the issues were not adjudicated on merits by the CIT(A), the appeals were remitted back for denovo adjudication.
Key Issues
Whether the delay in filing the appeal before the CIT(A) should be condoned and whether the case should be remanded for fresh adjudication on merits.
Sections Cited
144, 270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
आदेश / ORDER
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeals at the instance of assessee pertaining to A.Y. 2018-19 relate to quantum addition as well as penalty and are directed against the separate orders dated 26.12.2024 passed by National Faceless Appeal Centre, Delhi.
At the outset, Ld. Counsel for the assessee submitted that ld.CIT(A) has dismissed both the appeals of the assessee on account of delay in filing the appeal and has not dealt with merits of the case and thus prayed that the matters may be restored to the file of ld.CIT(A) for necessary adjudication. Reference made to the affidavit given before ld.CIT(A) mentioning the reasons for delay in filing the appeal. Ld. Departmental Representative was fair enough in not opposing this request. and 223/PUN/2025 Shelke Construction and M/s. Yash Builders and Construction Co.
We have heard both the sides and perused the record placed before us. We note that the assessee is a partnership firm, furnished its income-tax return for A.Y. 2018-19 on 31.10.1980 declaring income of Rs.1,43,740/-. Case selected for complete scrutiny for the Contract receipts or Fees. Assessee failed to appear before the ld. AO even after proper notices of hearing were issued. However, the reason for non-appearance was on account of covid-19 pandemic prevailing across the country at that point of time and the notices of hearing given by the AO were given fixing the date of hearing on 01.12.2020, 18.12.2020 and 29.12.2020. Due to non-compliance, assessment order was passed ex parte u/s.144 of the Act making addition of Rs.84,10,694/- and Ld. AO also initiated penalty proceedings u/s.270A of the Act which finally culminated vide order dated 14.09.2021 as per which penalty of Rs.12,99,452/- was levied. Penalty order was also passed during the covid-19 pandemic period.
The assessee assailed both the exparte orders relating to quantum and penalty before the ld.CIT(A) but there was delay in filing of the appeal. Most part of the delay was on account of covid-19 pandemic period and the remaining part of the delay was on account of notices which were sent to the Jalgaon office which was closed by the said time. The reason for closure of the office was that the assessee firm has incorporated as specific purpose vehicle for doing contract work at Jalgaon for the Indian Railways. Work was completed during F.Y. 2019-10 and the major part of the execution work was done by the Joint Venture partner Baban Rao Dagadu Shelke located at Pune. and 223/PUN/2025 Shelke Construction and M/s. Yash Builders and Construction Co.
Under these given facts and circumstances and in the larger interest of justice, we condone the delay in filing the appeal before ld.CIT(A. Since the issues have not been adjudicated by the ld.CIT(A) we deem it appropriate to remit the issues of quantum addition as well as the issue of penalty to the file of ld.CIT(A) for denovo adjudication. Ld.CIT(A) shall afford due opportunity of hearing to the assessee. Assessee is directed to remain vigilant and not to take unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised on merits in both the appeals are allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for statistical purposes.
Order pronounced on this 06th day of May, 2025.