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Facts
The assessee filed an appeal for AY 2021-22 against an assessment framed under Section 143(3), with a delay of 406 days, seeking condonation due to suffering a paralytic attack. Both the AO and CIT(A) had disallowed purchases due to the assessee's lack of representation during the assessment proceedings.
Held
The Tribunal condoned the delay and admitted the appeal, emphasizing principles of natural justice. The matter was restored to the CIT(A) for fresh adjudication, with a direction to the assessee to present and prove its case, keeping all issues open.
Key Issues
Whether the significant delay in filing the appeal should be condoned and whether the disallowance of purchases due to the assessee's lack of representation was justified.
Sections Cited
143(3)
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Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH
Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2021-22 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 06-02-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s 143(3) of the Act on 26-12-2022. The registry has noted delay of 406 days in the appeal, the condonation of which has been sought by the assessee on the strength of condonation petition which is accompanied by an affidavit of the assessee. It has been stated therein that the appeal could not be filed in time since the assessee suffered paralytic attack.
At the time of hearing, none appeared for assessee. In the assessment order, Ld. AO disallowed purchases made by the assessee for want of any representation from the assessee. The Ld. CIT(A) confirmed the assessment for the same very reasons. Aggrieved, the assessee is in further appeal before us. The Ld. Sr. DR has pleaded for dismissal of the appeal.
Keeping in mind the principles of natural justice and considering the background of the assessee, we admit the appeal and restore the appeal back to the file of Ld. CIT(A) for fresh adjudication with a direction to the assessee to plead and prove its case. All the issues are kept open.
The appeal stand allowed for statistical purposes. Order pronounced on 23rd February, 2026.