SHRI MUZAFER AHMAD RATHER ,ANANTNAG vs. INCOME TAX OFFICER WARD, UDHAMPUR
Facts
The assessee, a civil contractor, faced an addition of Rs. 22.96 lakhs to income due to disallowance of 15% of expenditures for lack of supporting documents during scrutiny assessment. His appeal to the CIT(A) went unrepresented as hearing notices were sent to his previous counsel's email ID, and he, being illiterate, was unaware of faceless proceedings. The appeal to the Tribunal was filed with a delay of 163 days.
Held
The Tribunal condoned the 163-day delay, finding no intentional neglect. It remanded the case back to the CIT(A) to grant the assessee a fresh opportunity to present all documentary evidence, directing that notices be sent to the updated email ID. The Tribunal noted that while the CIT(A) had correctly used the email ID from Form No. 35, the lack of representation was due to non-cooperation from the previous counsel.
Key Issues
Whether the delay in filing the appeal should be condoned, and if the assessee was denied a proper opportunity of hearing at the CIT(A) stage, justifying a remand for fresh adjudication on merits.
Sections Cited
Section 250 of the Income Tax Act, 1961, Section 143(3) of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
Per Udayan Dasgupta, J.M.:
This appeal is filed by the assessee against the order of the ld. CIT(A) NFAC,
Delhi dated 19.12.2023 passed u/s 250 of the Income Tax Act, 1961 which has emanated from the order of the AO, NFAC, Delhi passed u/s 143(3) of the Act, 1961
dated 26.09.2022.
2 I.T.A. No. 427/Asr/2024 Assessment Year: 2020-21 2. Condonation of delay: It is pointed out by the registry that this appeal is filed
belatedly by 163 (One hundred sixty-three) days. The assessee has filed an application
for condonation of delay stating the fact that the first appellate order is dated 19.12.2023 and the second appeal should have been filed within 60 days i.e., 28th
February, 2024. However, the said order has not been received in the e-mail id of the
assessee and as per the details contained in the portal, it is seen that the notices and
communications from the office of the ld. first appellate authority has been issued to
the e-mail id camuzamilhamid@gmail.com who according to the assessee is the
previous counsel of the assessee, who has never informed him about the existence of the appellate orders. Apart from the above, there are various other e-mail ids mentioned
in the appellate order which does not belong to the assessee. He further submitted that
the assessee is an illiterate person residing in remote village having no knowledge of
computer system and was totally unaware of faceless appellate proceedings and has come to know of the existence of the appellate order only on 4th July, 2024, and
thereafter, he appointed a lawyer who has guided him to file this appeal before the Tribunal on 29th July, 2024 which is belated by 163 days. He prayed that since the
delay was not intentional or willful on the part of the assessee, the delay in filing this
appeal may please be condoned and the appeal may please be admitted to be heard on
merits.
3 I.T.A. No. 427/Asr/2024 Assessment Year: 2020-21 3. Considering the submissions of the assessee, we are of the opinion that there are
no intentional neglect on the part of the assessee, and as such we condone the delay of
163 (one hundred sixty-three) days and admit the appeal to be taken up for hearing on
merits.
The assessee has taken six grounds of appeal in Form No. 36 and the main
objection is that no opportunity of hearing has been provided by the office of the ld.
first appellate authority and the ld. CIT(A) has not adjudicated on the grounds
contained in Form No. 35 on merits of the case.
Brief facts emerging from the records are that the assessee is in the business of
civil construction including road work and has submitted his return disclosing a total
income of Rs.80.29 lakhs which has been subsequently revised to Rs. 78.79 lakhs. In
course of scrutiny assessment proceedings, notices issued from the office of the AO
has not been complied in full and the assessee has not furnished any supporting
documents to substantiate the return filed, and in absence of proper bills and vouchers
and other documents, the assessment has been completed with an addition of Rs.22.96
lakhs on account of expenditures being disallowed on estimated basis @15% of the
total claim.
4 I.T.A. No. 427/Asr/2024 Assessment Year: 2020-21 6. The matter caried in appeal has also gone unrepresented and there has not been
any submission or any response to various notices issued by the ld. CIT(A) on four
different dates as apparent from the appellate order.
Before the Tribunal, the ld. AR of the assessee submitted that the notice has not
been issued to the e-mail id as updated in the portal, and the same has been served on
the earlier counsel who has never intimated the assessee regarding the dates of hearing.
As such, he humbly prayed that the assessee is in possession of all documentary
evidences regarding expenditure that has been claimed in the return and disallowance
of expenditure on estimated basis, is not justified and he is ready to produce all
documentary evidences in support of his entire claim and has prayed for an opportunity
of hearing before the ld. first appellate authority.
The ld. DR relied on the order of the ld. CIT(A) but has no objection if the matter
is remanded for fresh consideration.
We have heard the rival submissions and considered the materials on record and
we have gone through the various screenshots of the portal filed before us and the main
contention of the assessee is that the notice has not been issued to the e-mail id as
updated in the portal and on account of non-receipt of the notice of hearing, no
5 I.T.A. No. 427/Asr/2024 Assessment Year: 2020-21 representation could be made. However, we are not in agreement with the contention
of the assessee because it is seen from Form No. 35, the e-mail id provided is
camuzamilhamid@gmail.com (may be of previous counsel) and the ld. CIT(A) has
correctly issued the notices in the said e-mail id as admitted by the assessee in his
written submission (in page no. 32 of the paper book) where the assessee has admitted
that notice has been issued to the said email id. As such, we observe that in the instant
case, the ld. CIT(A) has correctly issued the notices in the e-mail id provide in Form
No. 35 but due to non-cooperation on the part of the earlier counsel, no representation
could be made. In the interest of justice, we remand the matter back to the ld. CIT(A)
to allow the assessee one more opportunity to furnish necessary documents in support
of his case and we direct the assessee to furnish all documentary evidences before the
ld. first appellate authority and to fully cooperate in the appellate proceedings.
The assessee should be allowed reasonable opportunity of being heard and
notices to be issued in the updated email id as available in the portal and also in the
email id provided in Form No. 35.
We have not expressed any opinion on merits of the case.
6 I.T.A. No. 427/Asr/2024 Assessment Year: 2020-21 12. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate
Tribunal) Rules, 1963 as on 21.11.2025
Sd/- Sd/- (Manoj Kumar Aggarwal) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order
