APEX EDUCATIONAL SOCIETY,PATHANKOT vs. COMMISIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGARH
Facts
The assessee filed an appeal against a best judgment assessment framed by the AO under Section 144 for AY 2017-18, which was subsequently confirmed by the CIT(A). There was a delay of 396 days in filing the appeal, for which condonation was sought, with the assessee claiming non-receipt of the impugned order.
Held
The Tribunal found sufficient cause for the delay based on the assessee's affidavit and condoned it. It admitted the appeal and, considering principles of natural justice and potential communication gaps in the faceless regime, set aside the impugned order. The matter was restored to the AO for a de novo assessment, providing the assessee another opportunity to substantiate its case.
Key Issues
Condonation of delay in filing appeal and granting fresh opportunity to the assessee for a de novo assessment framed ex-parte under Section 144 of the Income Tax Act.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘DB’, AMRITSAR BENCH, AMRITSAR
Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI UDAYAN DAS GUPTA, JM
Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an order of Ld Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 08.12.2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s. 144 of the Act on 25.12.2019. The registry has noted delay of 396 days, the condonation of which has been sought by Ld. AR on the strength of condonation petition which is accompanied by an affidavit of the assessee. It has been stated that the assessee was not aware of the impugned order and the order was never served on the assessee. Upon perusal of these documents, we find that sufficient cause has been established by the assessee to explain the delay. Accordingly, we admit the appeal and proceed for adjudication of the same.
In the assessment order, Ld. AO has assessed income at Rs.27.08 Lacs for want of any representation from the assessee. The assessment was confirmed by Ld. CIT(A) for the same very reasons. Aggrieved, the assessee is in further appeal before us.
Keeping in mind the principles of natural justice and considering the possibility of communication gaps during faceless regime, we deem it fit to afford another opportunity of hearing to the assessee to substantiate its case before Ld. AO. Accordingly, the impugned order is set aside and the assessment is restored back to the file of Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case.
The appeal stand allowed for statistical purposes. Order pronounced u/r 34(4) of Income Tax (Appellate Tribunal) Rules, 1963. (UDAYAN DAS GUPTA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 03 -07-2025
आदेश की "ितिलिप अ"ेिषत / Copy of the Order forwarded to : 1. अपीलाथ"/Appellant
""थ"/Respondent 3. आयकरआयु"/CIT 4. िवभागीय"ितिनिध/DR 5. गाड"फाईल/GF
