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Facts
The assessee filed an appeal against the order of the CIT(A) which upheld the assessment order. The assessee's principal officer was unwell during the assessment and appellate stages, preventing proper participation. This resulted in a delay in filing the present appeal.
Held
The Tribunal condoned the delay in filing the appeal. It was held that the orders of the lower authorities were not based on merits and violated principles of natural justice due to the assessee's inability to participate. Therefore, the case was set aside and remanded.
Key Issues
Whether the appeal filed by the assessee should be admitted despite the delay, and whether the lower authorities' orders are sustainable on merits given the assessee's inability to participate due to illness.
Sections Cited
253, 144, 144B, 246A, 250
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Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI BHAGIRATH MAL BIYANI, ACCOUNTANT & SHRI PARESH M JOSHI
आदेश / O R D E R
Per Paresh M Joshi, J.M.:
This is an appeal filed by the assessee Under Section 253 of
the Income Tax Act, 1961 (hereinafter referred to as the “Act” for
sake of brevity) before this Tribunal. The assessee is aggrieved
by the order bearing Number ITBA/NFAC/S/250/2024-25/
1064882037(1) dated 15.05.2024 passed by Ld. CIT(A) u/s 250
of the Act which is hereinafter referred to as the “Impugned
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order”. The relevant Assessment Year is 2020-21 and the
corresponding previous year period is from 01.04.2019 to
31.03.2020.
FACTUAL MATRIX
2.1 That as and by way of an assessment order made u/s 144
r.w.s. 144B of the Act, the assessee’s total income exigible to
tax was computed and assessed at Rs. 99,33,986/- . The
assessee’s Return of Income was Rs.9,89,776/-. Addition of
Rs.89,44,212/- was made. That the aforesaid assessment order
bears Number : ITBA/AST/S/144/2022-23/1045926281(1) and
that the same is dated 24.09.2022 which is hereinafter referred
to as the “impugned assessment order”.
2.2 That the assessee being aggrieved by the “impugned
assessment order” prefers first appeal u/s 246A of the Act
before Ld. CIT(A) who by the “impugned order” has dismissed
the appeal of the assessee on grounds stated therein.
2.3 That the assessee being aggrieved by the “impugned order”
has preferred the instant second appeal before this Tribunal and
has raised following grounds of appeal in Form 36 in against the
“impugned order” which are as under:-
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“1. That the order u/s 250 of the Income Tax Act, 1961 passed by the Learned Commissioner of Income Tax-Appeals, National Faceless Assessment Centre is bad & defective both in the law and facts. 2. That due to bed rest of assessee's principal officer rom from 01.01.2022 to 30.09.2022 due to his health issues. therefore assessee could not give responses for the same for assessment proceedings made u/s 144 After that assessee had preferred an appeal against the order u/s 144 on 04.10.2022 as and when assessee's principal officer recovered from his ill health. Thereafter filing appeal again assessee's principal officer went onto bed-rest from 01.01.2023 to 31.08.2024 due to his serious illness. We on humble note request you to allow the appeal and assuring you to fully cooperate with honorable benches/your good office”.
Record of Hearing
3.1 The hearing in the matter took place before this Tribunal on
09.06.2025 when the Ld. AR for and on behalf of assessee
appeared before us and interalia brought to out notice that
registry has pointed out that there is a delay of 60 days in filing
the present appeal before this Tribunal. We note that instant
appeal was filed on 12.09.2024 by e-filing method. In Form
No.36 date of “impugned order” is shown as 15.05.2024. Date of
service of “impugned order” is shown as 15.05.2024. The
assessee has filed a condonation of delay application and desires
that this Tribunal should condone the delay in preferring this
instant appeal. It is contended that assessee society’s Principal
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Officer has remained unwell for a considerable period of time
which caused serious prejudice to them consequently delay in
filing instant appeal besides other prejudices too were caused to
assessee society. An affidavit in support of Society’s Director
Cum authorized signatory is placed on record in support of
condonation of delay. The Ld. DR for Revenue has not opposed
the condonation of delay application and so also an affidavit in
support of same. After hearing both Ld. AR & Ld. DR and so also
after perusing the condonation of delay application including an
affidavit in support we condone the delay. Appeal is admitted
and taken up for hearing.
3.2 The Ld. AR for assessee society then contended that the
both the orders of the lower authority i.e. of Ld. A.O’s “impugned
assessment order” and that of Ld. CIT(A)’s “impugned order”
are not on merits and are in violation of the principles of natural
justice. It is contended that due to illness of the Principal
Officer’s of assessee’s society for long time they could not respond
to Ld. A.O as well as Ld. CIT(A) as he was bed ridden. The
assessee society has filed written submission cum statement of
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facts wherein the assessee society has highlighted ill health of
their Principal Officer which led to non participation both at
original stage of assessment and so also at 1st appellate stage.
Per contra Ld. DR too stated that both the orders of lower
authorities are not on merit and in the circumstances matter
should be set aside and be remanded to Ld. A.O.
Observations,findings & conclusions.
4.1 We now have to adjudge and adjudicate the present appeal
filed by the assessee company on the basis of the records of the
case and contentions canvassed before us during the course of
hearing. In brief we have to decide the legality, validity and the
proprietery of the “impugned order”.
4.2 We have carefully perused the records of the case as
presented to this tribunal by both Ld. AR and Ld. DR to
determine the legality, validity of the “Impugned Order” basis
law and by following due process of law.
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4.3 We basis records of the case, after hearing and upon
examining the contentions are of the considered opinion that but
on the other hand the “impugned assessment order” and
“Impugned Order” are not on merits of the case. We are of the
considered opinion that both the orders of lower authorities
ought to have been on merits but unfortunately that is not so.
Needless to state that the assessment of income both at the
original stage as well as at 1st appeal stage (if necessary and
required) should as far as possible, should be on merits of the
case so that real income of assessee is discovered in quasi
judicial manner.
4.4 In the facts and circumstances of the present case assessee
society could not participate at both levels of lower authorities i.e
before Ld. A.O and Ld. CIT(A) (1st appeal stage) on account of
sickness of assessee society’s Principal Officer. Hence under
these peculiar facts and circumstances of the case we set aside
the “Impugned Order” and remand the case back to Ld. A.O on
denovo basis.
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Order
5.1 The “Impugned Order” is set aside as and by way of
remand back to Ld. A.O on denovo basis.
5.2 Appeal of the assessee is allowed for statistical purpose.
Order pronounced in open court on 11.06.2025.
Sd/- Sd/-
(BHAGIRATH MAL BIYANI) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER
Indore िदनांक / Dated : 11/06/2025 Dev/Sr. PS
Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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