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Facts
The assessee's appeal against an AO's order treating cash deposits as undisclosed income u/s 69A was dismissed ex-parte by the CIT(A) because notices were sent to a temporary email ID. The assessee filed a delayed appeal before the ITAT, citing non-receipt of notices and the CIT(A)'s order due to this email issue, alongside personal difficulties.
Held
The Tribunal condoned the 188-day delay in filing the appeal, finding valid reasons. It then set aside the ex-parte order of the CIT(A), ruling that the assessee was not given an effective opportunity to be heard, and remanded the matter to the CIT(A) for fresh adjudication on merits after proper notification to the assessee.
Key Issues
1. Whether the delay in filing the appeal should be condoned due to non-receipt of notices from CIT(A) sent to a temporary email ID. 2. Whether the ex-parte order of the CIT(A) should be set aside and the matter remanded for fresh adjudication on merits.
Sections Cited
69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN
Before: SHRI INTURI RAMA RAO & SHRI SOUNDARARAJAN K.
ORDER PER SOUNDARARAJAN K., JUDICIAL MEMBER
This is an appeal filed by the assessee challenging the order of the NFAC, Delhi dated 07/11/2023 in respect of the A.Y. 2017-18.
The appeal was filed with a delay of 188 days and the assessee also filed an application to condone the said delay. In the said application, the assessee submitted that while filing the appeal before the Ld.CIT(A) through online, the authorised representative had created a temporary email ID and therefore the notices issued by the Ld.CIT(A) was not known to the assessee and also the order of the Ld.CIT(A) was also not known to the assessee.
Therefore both the hearing notices as well as the appellate order were not noticed by the assessee and therefore the appeal could not be filed intime before this Tribunal.
The assessee further submitted that the assessee came to know about the dismissal order of the Ld.CIT(A) only when the officer informed about the penalty notices and asked the assessee to respond to the said notices. At that time only, the assessee came to know that the Ld.CIT(A) had dismissed the appeal ex-parte and thereafter steps were taken to challenge the said ex- parte order before this Tribunal. Therefore the delay has been occurred and prayed that the said delay may be condoned in order to decide the appeal on merits. The assessee also submitted that she was suffering from mental illness and taking treatment for the past several years and her husband also expired on 10/12/2021 and therefore prayed that the said delay may be condoned and the appeal may be decided on merits otherwise she would be put into great hardship and irreparable loss would be caused to her.
We have considered the said submissions made by the assessee and satisfied ourselves that the assessee had valid reasons for not filing the appeal in time and therefore we allow the prayer of condoning the delay and take up the appeal for hearing on merits.
The brief facts of the case are that the assessee is an individual and filed her return of income on 27/03/2018. The return was processed and it was selected for limited scrutiny to enquire about the deposit of cash in her bank account on 11/11/2016. The assessee submitted her explanations and also submitted evidences in support of her submission. The AO disbelieved the explanations and rejected the same and treated the cash deposits as undisclosed income u/s. 69A of the Act. As against the said order, the assessee filed an appeal before the Ld.CIT(A) and submitted that the AO had not considered the explanations given by her and also the evidences produced by her and therefore prayed to set aside the order of the AO. As seen from the appeal order, the assessee had not filed any written Ld.CIT(A) had dismissed the appeal on the ground that the assessee had not prosecuted the appeal.
Thereafter the assessee filed an appeal before this Tribunal and submitted that the alleged various notices issued by the Ld.CIT(A) were not received by the assessee since the notices were sent to the temporary email ID created by the authorised representative at the time of filing the appeal and prayed to grant one opportunity to address the matter before the Ld.CIT(A).
At the time of hearing, the Ld.AR drew our attention to the reasons stated in the delay condonation application and about the non-receipt of the notices sent to the temporary email ID created by the authorised representative and prayed to grant an opportunity to appear before the Ld.CIT(A).
The Ld.DR relied on the order of the lower authorities and prayed to dismiss the appeal.
We have heard the arguments of both sides and perused the materials available on record.
In the earlier paragraph, we have accepted the reasons for the delay in filing the appeal in which the assessee had explained the various hearing notices as well as the appeal order were not received by her since the notices were sent to the temporary email ID created for the purpose of filing the appeal on time and condoned the delay in filing the appeal and admitted the appeal for hearing on merits. But unfortunately, the Ld.CIT(A) had passed an ex-parte order by sending the notices to the temporary email ID and finally ex-parte order was also communicated to the same email ID and therefore she was not provided an effective opportunity to put forth her case before the Ld.CIT(A). We have also found that in form no. 35, the assessee ID noted in it. In spite of that, we understand that the notices were sent to the said email ID which was a temporary email ID and therefore the assessee’s contention seems to be a genuine one.
In such circumstances, we are of the view that one more opportunity should be granted to the assessee to appear before the Ld.CIT(A). We therefore set aside the order of the Ld.CIT(A) and restore the matter to his file with a direction to decide the appeal on merits after hearing the assessee. We also direct the Ld.CIT(A) to send the notices to the email ID mentioned in form 36 and thereafter decide the appeal on merits after hearing the assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 11th March, 2025.