VANDANA SONI,MANASA vs. ITO, NEEMUCH
What did the Tribunal hold?
The Tribunal held that there was a sufficient cause for the delay in filing the appeal. Citing Section 253(5) of the Act and the Supreme Court's decision in Collector, Land Acquisition Vs Mst. Katiji and others, the ITAT adopted a justice-oriented approach, preferring substantial justice over technical considerations. The Tribunal condoned the delay and admitted the appeal. Furthermore, in agreement with both the assessee and the revenue, and considering the principles of natural justice, the ITAT decided to remand the matter to the file of the AO for fresh adjudication. The AO was directed to provide the assessee with an opportunity of hearing and pass an appropriate order, uninfluenced by the previous ex-parte order. The assessee was cautioned to remain vigilant and participate in future hearings. The appeal was allowed for statistical purposes.
What were the facts?
The assessee, Vandana Soni, filed an appeal before the Income Tax Appellate Tribunal (ITAT) challenging an order dated 29.04.2023 passed by the Commissioner of Income-Tax (Appeals)-NFAC, Delhi. This order arose from an assessment order dated 13.12.2019 passed by the Income Tax Officer (AO), Neemuch, under sections 144 read with 147 of the Income-tax Act, 1961, for Assessment Year 2017-18. The ITAT noted that the appeal was filed on 09.05.2024, which was beyond the statutory time limit. The assessee sought condonation of delay, explaining that notices from the CIT(A) were sent to an old, inactive email address (parassoliwal3@gmail.com) instead of the correct one provided by the assessee (paras.soni20@gmail.com). This resulted in ex-parte proceedings and the assessee becoming aware of the order only on 18.05.2024.
What were the issues?
1. Whether there is a sufficient cause for condoning the delay in filing the appeal, as required under Section 253(5) of the Income-tax Act, 1961? The assessee argued that the delay was solely due to the CIT(A) sending notices to an incorrect and inactive email address, leading to ex-parte proceedings and the assessee's lack of knowledge about the order. The assessee contended there was no lethargy, negligence, or mala fide intention. The revenue, through the Senior Departmental Representative, left the matter to the wisdom of the Bench without raising objections. 2. Whether the matter should be restored to the file of the AO for proper adjudication, given that both the AO's and CIT(A)'s orders were passed ex-parte due to non-prosecution? Both the assessee and the revenue agreed that the matter was fit for restoration to the AO.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per B.M. Biyani, A.M.:
Feeling aggrieved by order of first-appeal dated 29.04.2023 passed by learned Commissioner of Income-Tax (Appeals)-NFAC, Delhi [“CIT(A)”] which in turn arises out of assessment-order dated 13.12.2019 passed by learned ITO, Neemuch [“AO”] u/s 144 r.w.s. 147 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”] 2017-18, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36).
Page 1 of 4 - AY 2017-18
The registry has informed that the present appeal is filed on 09.05.2024 against impugned order dated 29.04.2023 which is after statutory time period and therefore time-barred. Ld. AR for assessee submitted that the assessee has filed a condonation-application supported by an affidavit. Referring to same, Ld. AR explained that in Column No. 17 of Form No. 35 filed to CIT(A), the assessee provided e-mail id paras.soni20@gamil.com against the information required “Address to which notices may be sent to the appellant”. However, the CIT(A) has sent notices of hearing to parassoliwal3@gmail.com existing in the database of department (according to Ld. AR, the same email id is also auto-populated in the beginning part of Form No. 35). Ld. AR filed a copy of notice of hearing dated 21.04.2023 to show that the CIT(A) has sent notice to email id parassoliwal3@gmail.com which was of previous consultant and not in active use. He submitted that the CIT(A) has delivered notices to this email id and so is the case of delivery of impugned order and there was no physical service. This has led to passing of impugned order ex-parte to assessee as well as non-filing of present appeal in time. It is only when the assessee logged in Income-tax Portal on 1st May, 2024 in the process of filing return for AY 2024-25 that the impugned order having been passed by CIT(A) came to the knowledge of assessee. Immediately, the assessee filed present appeal on 09.05.2024 without further delay. Ld. AR very humbly submitted that there is no lethargy, negligence, mala fide intention or ulterior motive of assessee in making delay and the assessee does not stand to derive any Page 2 of 4 - AY 2017-18 benefit because of delay. He further submitted that the sole reason of delay is as explained in the condonation-application. He submitted that there is “sufficient cause” for delay and hence the delay should be condoned. Ld. DR for Revenue left the matter to the wisdom of Bench without raising any objection. We have considered the explanation advanced by assessee and in absence of any contrary fact or material on record, the assessee is found to have a “sufficient cause” for delay in filing present appeal. We find that section 253(5) of the Act empowers the ITAT to admit an appeal after expiry of prescribed time, if there is a “sufficient cause” for not presenting appeal within prescribed time. It is also a settled position by Hon’ble Supreme Court in Collector, Land Acquisition Vs Mst. Katiji and others 1987 AIR 1353, 1987 2 SCC 387 that whenever substantial justice and technical considerations are opposed to each other, the cause of substantial justice must be preferred by adopting a justice-oriented approach. Thus, taking into account the provision of section 253(5) and the decision of Hon’ble Supreme Court, we take a judicious view, condone delay, admit appeal and proceed with hearing.
Thereafter, Ld. Representatives of both sides agree that both of the orders passed by lower authorities viz. AO and CIT(A), are ex-parte due to non-prosecution and hence the present matter is fit for restoring to the file of AO for a proper adjudication. In view of agreement of both sides and having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matter is Page 3 of 4 - AY 2017-18 restored at the level of AO, we remand this matter to the file of AO for adjudication afresh, at the risk and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass an appropriate order uninfluenced by his earlier order. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate order in accordance with law. Ordered accordingly.
Resultantly, this appeal is allowed for statistical purpose.
Order pronounced in open court on 17/06/2025
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