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Facts
The assessee filed an appeal against an order that denied exemption under Section 10(23C)(iiiad) for AY 2019-20. The assessee's appeal before the CIT(A) was dismissed for non-compliance, with the CIT(A) reportedly giving very short notice.
Held
The Tribunal condoned the delay in filing the appeal. It was held that the CIT(A) did not provide a fair opportunity for hearing, and therefore, the issue was restored to the CIT(A) for denovo adjudication on merits.
Key Issues
Whether the CIT(A) erred in dismissing the appeal for non-compliance without granting adequate opportunity for hearing and whether the denial of exemption under Section 10(23C)(iiiad) was justified.
Sections Cited
250, 143(1), 10(23C)(iiiad)
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Income Tax Appellate Tribunal, PUNE BENCHES “B”, PUNE
Before: DR.MANISH BORAD & MS. ASTHA CHANDRA
PER DR. MANISH BORAD, ACCOUNTANT MEMBER :
The captioned appeal at the instance of assessee pertaining to assessment year 2019-20 is directed against the order dated 11.09.2024 passed by ld. Addl.JCIT(A), Thiruvanantpuram u/s.250 of the Income Tax Act, 1961 ( in short ‘the Act’) arising out of the Intimation order dated 05.02.2021 passed u/s.143(1) of the Act.
Registry has informed that there is a delay of 33 days in filing the appeal before this Tribunal. Application for condonation along with affidavit and Medical certificate has been filed giving reasons for delay.
After hearing both the sides and considering the reasons giving rise to the delay and also placing reliance on the judgment of Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji & Ors. (1987) 2 SCC 107) we find that there was ‘reasonable cause’ which prevented the assessee in filing the appeal within the stipulated time. We therefore condone the delay of 33 days and proceed for adjudication of appeal.
The issue raised by the assessee in the grounds of appeal is mainly regarding the denial of exemption u/s.10(23C)(iiiad) of the Act. Along with this ground it is stated that ld.CIT(A) has not provided fair opportunity and has dismissed the appeal without passing a speaking order
We have heard the rival contentions and perused the record placed before us. We notice that the assessee filed the return of income for A.Y. 2019-20 claiming deduction u/s.10(23C)(iiiad) at Rs.65,30,914/- thereby declaring Nil income. But in the return processed u/s.143(1)(a) of the Act dated 05.02.2021 benefit of exemption u/s.10(23C)(iiiad) was denied against which the assessee preferred appeal before ld.CIT(A) who has dismissed the assessee’s appeal for non-compliance. We notice that ld.CIT(A) gave very short time to the assessee to furnish the details and prima-facie it shows that fair opportunity of hearing was not given to the assessee. We therefore considering the prayer of the assessee and also in the larger interest of justice deem it proper to restore the issue raised on merits to the file of ld.CIT(A) for denovo adjudication. Assessee is directed to provide latest email id and contact detail to the department for receiving the notices from ITBA portal. Assessee is further directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause, failing which the ld.CIT(A) shall be free to proceed in accordance with law. Findings of ld.CIT(A) is set aside and effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 02nd day of May, 2025.