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Facts
The assessee's appeal was filed against an order by the CIT(A) which confirmed an addition of Rs. 71,41,262/- made by the AO. The appeal was filed beyond the statutory limitation period by 310 days. The assessee sought condonation of delay, stating the appellate order came to their knowledge much later than its date of passing.
Held
The Tribunal condoned the delay, finding that the assessee had a reasonable cause for the delay. Although the assessee was absent before the CIT(A) and could not claim violation of natural justice, the Tribunal restored the issue to the AO for re-adjudication in the interest of justice.
Key Issues
Whether the appeal filed by the assessee is within the limitation period, and if not, whether the delay should be condoned. Also, the core issue of confirming the addition of Rs. 71,41,262/-.
Sections Cited
250, 144, 271AAC(1), 69A, 251
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PATNA BENCH AT KOLKATA
Before: SHRI GEORGE MATHAN & SHRI RAKESH MISHRA
PER BENCH: This appeal filed by the assessee is against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi [hereinafter referred to as Ld. 'CIT(A)'] [hereinafter referred to as Ld. 'CIT(A)'] passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) I.T.A. No.: 5/PAT/2025 Assessment Year: 2017-18 Asha Sinha. for AY 2017-18 dated 28.12.2023, which has been passed against the assessment order u/s 144 of the Act, dated 29.11.2019. 1. 1. The Registry has informed that the appeal filed by the assessee is barred by limitation by 310 days. An application seeking condonation of delay has been filed by the assessee stating as under: “The Ld. CIT(A) has passed order in Appeal No.CIT(A), Patna- 1/10641/2019-20 on 28/12/2023. It is submitted that the said appellate order dated 28/12/2023 has come to the knowledge of the appellant on 14/11/2024 when a notice u/s 271AAC(1) was served bearing No.L879 through Speed Post from the office of Income Tax Officer, VU-1(2)(3), Muzaffarppur (Stationed at Patna). Thereafter, on browsing of the e-portal, the appellant has found the impugned order dated 28/12/2023 which was uploaded under the tab 'For Your Information' and not under the tab 'For Your Action' and accordingly no real time message was received on the registered mobile number. The limitation if counted from the date of order, i.e. 28/12/2023, it can be said that this appeal is a belated appeal. However, it is stated that the impugned order came to the knowledge of the appellant on 14/11/2024 and therefore, according to the appellant, the present appeal is not a belated appeal. An affidavit in support of the averment made in this condonation petition is also attached. However, without entering into controversy, it is respectfully submitted that delay, if any, may kindly be condoned and the appeal may kindly be heard on merits.”
Considering the application for condonation of delay and the reasons stated therein, we are satisfied that the assessee had a reasonable and sufficient cause and was prevented from filing the instant appeal within statutory time limit. We, therefore, condone the delay and admit the appeal for adjudication.
The assessee is in appeal before the Tribunal raising the following grounds of appeal: I.T.A. No.: 5/PAT/2025 Assessment Year: 2017-18 Asha Sinha. “1. For that the Ld. CIT(A), NFAC has erred in deciding appeal ex-parte and confirming the addition of Rs.71,41,262/- made by the A.O.
For that the Ld. CIT(A), NFAC has erred in alleging non-compliance to the notices whereas the fact remains that no such notice either in physical mode or in electronic mode was received by the appellant.
For that the Ld. CIT(A), NFAC has erred in holding that the assessee is not willing to pursue the appeal and has accordingly erred in dismissing the appeal.
For that the Ld. CIT(A), NFAC has erred in not adjudicating any of the grounds raised in the memo of appeal.
For that the Ld. CIT(A), NFAC has erred in dismissing the appeal in absence of assessment order.
For that the Ld. CIT(A), NFAC has erred in sustaining the addition of Rs.71,41,262/- made u/s 69A of the Income Tax Act.
For that the whole order is bad in fact and law of the case and is fit to be restored back to the file of CIT(A) and/or the Assessing Officer particularly in view of insertion of proviso below clause (a) of section 1 of section 251 by Finance(2) Act, 2024 w.e.f. 01/10/2024.”
At the outset, the Ld. AR submitted that the order passed by the Ld. CIT(A) is an ex parte order. Hence, the Ld. AR prayed before the Bench to set aside the order of the Ld. CIT(A) and restore the issue to the file of the Ld. AO for adjudication afresh. We find that the assessee, despite being provided sufficient opportunities of hearing before the Ld. CIT(A), did not present himself in the appellate proceedings and therefore, cannot agitate for violation of the principles of natural justice. However, in the interest of justice and so as to grant the assessee adequate opportunity to substantiate his case, the issues in this appeal are restored to the file of the Ld. AO for re-adjudication subject to the cost of Rs. 10,000/- (Rupees ten thousand) only payable to Bihar State Legal Services Authority, Patna within sixty days from the date of this order and receipt of the same would be produced before the Ld. AO at the first hearing. Should the assessee not pay the abovementioned cost I.T.A. No.: 5/PAT/2025 Assessment Year: 2017-18 Asha Sinha. within the prescribed period of sixty days from the date of this order, the order of the Ld. CIT(A) shall stand confirmed.
In the result, the appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 9th April, 2025. [Rakesh Mishra] [George Mathan] Accountant Member Judicial Member Dated: 09.04.2025 Bidhan (P.S.) I.T.A. No.: 5/PAT/2025 Assessment Year: 2017-18 Asha Sinha. Copy of the order forwarded to:
Asha Sinha, Asha Bhawan, Dearia Nagar Station Road, Biharsharif, Nalanda, Patna, Bihar, 803101. 2. ITO, Ward-2(3), Biharsharif.
CIT(A)-NFAC, Delhi.
CIT-
CIT(DR), Patna Bench, Patna.
Guard File. //// By order