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Facts
The assessee filed an appeal with a 39-day delay, submitting an affidavit citing non-receipt of a physical copy of the order and unavoidable circumstances due to a former secretary's health. The assessee also claimed non-compliance with lower authorities due to these circumstances.
Held
The tribunal condoned the delay, acknowledging the reasons provided by the assessee. The tribunal observed non-compliance by the assessee before the CIT(A) and assessment proceedings.
Key Issues
Whether the delay in filing the appeal can be condoned and whether the case should be set aside for fresh adjudication due to non-compliance.
Sections Cited
Section 254 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, “B” BENCH : BANGALORE
Before: SHRI GEORGE GEORGE K & SHRI WASEEM AHMED
PER WASEEM AHMED, ACCOUNTANT MEMBER:
This is an appeal filed by the assessee against the order passed by the NFAC, Delhi dated 24/01/2024 in DIN No. ITBA/NFAC/S/250/ 2023-24/1060092668(1) for the assessment year 2017-18.
At the outset, we note that there was a delay in filing the appeal by the assessee before us of 39 days. The assessee filed an Affidavit for condonation of the delay in filing the appeal. In the Affidavit, it was submitted that the assessee has not received physical copy of the order passed by the ld. CIT(A). Though, it was mentioned in Form No. 35 that there should not be any communication through email. Besides, it was also submitted that the erstwhile Secretary cum Chief Executive Officer suffered a paralysis stork dated 16/10/2021 and the new Secretary was appointed dated 21/2/2022, who was not aware of the Income-tax proceedings, which were pending prior to his taking up the charge. Thus, it was submitted that the delay has occurred in filing the appeal before the ITAT due to unavoidable circumstances. In view of the above, the ld. AR requested to condone the delay in filing the appeal and to hear the matter on merit. The ld. AR further pointed out that the orders passed by the authorities below are ex-parte. As per the AR, the assessee failed to make necessary compliance before the authorities below for the reasons stated above. Thus, the matter should be set aside to the AO for fresh adjudication as per the provisions of law.
On the other hand, the ld. DR did not oppose it if the delay is condoned and the issue is set aside on the merit of the case as per the provisions of law to the file of the AO.
We have heard the rival contentions of both the parties and perused the materials available on record. In view of the aforesaid discussion and considering the length of the delay in filing the appeal, we are inclined to condone the delay in the interest of justice and fair play. Accordingly, we condone the delay and proceed to adjudicate the matter on merits.
5.1 At the threshold, it was noticed that there was non-compliance by the assessee before the ld. CIT(A) even though various notices were issued by the ld. CIT(A) to the assessee to represent its case. However, on perusal of Form No.35 filed along with the new appeal, we note that the assessee clearly refused to receive any communication through email . but despite that the ld. CIT(A) communicated all the notices through email. As such, in the given facts and circumstances of the case, we are of the view that there was a valid reason for the assessee for non- compliance before the ld. CIT(A). Accordingly, we are of the view that the matter should be restored to the file of the ld. CIT (A) for fresh adjudication as per the provisions of law.
5.2 Before parting, it was further noticed that the assessee has also not made any compliance during the assessment proceedings. Thus, in such facts and circumstances, if we set aside the matter to the file of the ld. CIT (A), then a remand report is to be called upon by the ld. CIT (A) from the AO, which will certainly take longer time to dispense the justice to the assessee. Therefore, in such circumstances, we are of the view that it is a fit case, which needs to be set aside to the file of the AO for fresh adjudication as per the provisions of law. It is needless to mention that the assessee shall not seek unnecessary adjournment without just cause and it will co-operate during the assessment proceedings and will make necessary compliances as and when required by the AO. Thus, we set aside the issue to the file of the AO for fresh adjudication as per the provisions of law. Hence, ground of appeal of the assessee is hereby allowed for statistical purposes.