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Facts
The assessee's assessment for AY 2017-18, framed under Section 144, resulted in additions of Rs. 37 Lacs due to lack of representation. The Ld. CIT(A) upheld the assessment and refused to condone a 790-day delay in filing the appeal, prompting the assessee to appeal before the ITAT.
Held
The Tribunal condoned the delay, noting that a significant portion occurred during the Covid-19 lockdown period. Applying principles of natural justice, the ITAT set aside the CIT(A)'s order and remitted the case to the Ld. AO for a fresh assessment (de novo), granting the assessee an opportunity to present its case.
Key Issues
Condonation of delay in filing appeal before CIT(A) and whether the assessee should be granted another opportunity of hearing for a best judgment assessment.
Sections Cited
Section 144
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Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH
Before: HON’BLE SHRI RAJPAL YADAV & 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) 2017- 18 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC dated 23-09-2025 in the matter of an assessment framed by Ld. AO on best judgment basis u/s 144 on 27-12-2019. In the assessment order, Ld. AO made twin additions of Rs.37 Lacs for want of any representation from the assessee. The Ld. CIT(A) did not condone the delay of 790 days and also endorsed the action of Ld.
AO on merits for want of any substantial evidences from the assessee. Aggrieved, the assessee is in further appeal before us. The only prayer of Ld. AR is condonation of delay and another opportunity of hearing which has been opposed by Ld. Sr. DR. The Ld. AR stated that the assessee is in a position to substantiate its case.
We find that the assessment was framed on 27-12-2019 and the first appeal ought to have been filed by the assessee within 30 days thereof. Considering the fact that substantial part of delay fall within Lockdown situation arising out of Covid-19 Pandemic, the delay should have been condoned by Ld. CIT(A). Nevertheless, considering the facts of the case and keeping in mind the principles of natural justice, we deem it fit to provide another opportunity of hearing to the assessee to substantiate its case before Ld. AO. Accordingly, the impugned order is set aside and Ld. AO is directed to frame assessment de novo. The assessee is directed to plead and prove its case forthwith.