BATTU KUSUMA KUMARI,TIRUPATHI vs. COMMISSIONER OF INCOME TAX APPEALS, VISAKHAPATNAM

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ITA 340/HYD/2021Status: DisposedITAT Hyderabad18 January 2022AY 2008-094 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal condoned the delay due to the assessee's ill health. It found that the CIT(A) should have decided the appeal on merits rather than dismissing it ex-parte.

What were the facts?

The assessee filed an appeal before the ITAT with a significant delay of 1164 days, citing severe ill health. The CIT(A) had passed an ex-parte order as the assessee failed to appear for hearings.

What were the issues?

Whether the delay in filing the appeal should be condoned and whether the CIT(A) erred in passing an ex-parte order without deciding on merits.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153C,Section 250(6)

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Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD

Hearing: 10/01/2022Pronounced: 18/01/2022

This appeal is filed by the assessee against the order of the Ld. CIT(A)-3, Visakhapatnam in appeal No.113/2014-15/CIT(A)- 3/VSP/2017-18, dated 26/03/2018 passed U/s. 143(3) r.w.s 153C and U/s. 250(6) of the Income Tax Act, 1961 for the A.Y. 2008-09.

2. The assessee has raised three grounds in her appeal and they are extracted herein below for reference:

“1. The Learned Assessing Officer is unjustified in disallowing the investment made towards the purchase of property.

2.

The Assessing Officer is not justified in adding loan taken from Mr. Y. Sivarami Reddy to the income declared.

3. The Learned Assessing Officer is erred in addition the personal savings of the assessee to the total income.”

3.

At the time of hearing, none appeared before us on behalf of the assessee to represent her case. At the outset, we find that there is a delay of 1164 days in filing the appeal before the Tribunal. In this regard, the assessee had filed an affidavit seeking condonation of delay wherein the reasons for filing the appeal beyond the prescribed time limit was explained. For reference, the relevant portion from the affidavit is extracted herein below: -

“…….. That my health was in bad condition and got hospitalized and therefore the appeal could not be filed well within the stipulated time (A copy of medical certificate being enclosed herewith.”

4.

On perusal of the affidavit filed by the assessee, We are of the view that the reason for the delay was due to severe ill health of the assessee because of which she could not file the appeal papers before the Tribunal within the stipulated time. Therefore, relying on the decision of the Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. MST. Katiji & Ors (167 ITR 471) (SC), We are of the view that the assessee was prevented by a reasonable cause in filing the appeal beyond the stipulated time and therefore, in the interest of justice, We hereby condone the delay of 1164 days in filing the appeal before the Tribunal and proceed to adjudicate the appeal on merits.

5.

At the outset, on examining the order of the Ld. CIT(A), it appears that the Ld. CIT (A) has passed ex-parte order. Before us, the Ld. DR argued vehemently by stating that sufficient opportunities had been provided to the assessee however, on the given dates of hearing, neither the assessee nor her Representative appeared before the Ld. CIT (A). Therefore the Ld. CIT (A) had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A) does not call for any interference.

6.

We have carefully considered the facts and circumstances of the case and perused the materials on record. On examining the order of the Ld. CIT(A), We find that Ld. CIT (A) had posted the case on several occasions. However, none appeared on behalf of the assessee before the CIT(A) on the dates of hearing. Therefore, the Ld. CIT (A) was left with no other option except to adjudicate the appeal ex-parte. In this situation, we are of the view that the Ld. CIT(A) ought to have decided the case on merits instead of dismissing the appeal by simply stating that the assessee is not interested in prosecuting her appeal. Considering these facts and circumstances of the case as well as the issues involved in the appeal, in the interest of justice, We hereby remit the matter back to the file of Ld. CIT (A) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. At the same breath, We also hereby caution the assessee to promptly co-operate before the Ld. CIT (A) in the proceedings failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on the record. It is ordered accordingly.

7.

In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.

Pronounced in the open Court on the 18th January, 2022.

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