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Facts
The assessee appealed against an order confirming an addition of Rs. 15,26,000/- on account of short-term capital gain from the sale of a plot of land. The appeal was filed with a delay of 97 days due to an inadvertent lapse by the authorized representative. The assessee contended that the impugned order was passed ex parte, violating principles of natural justice.
Held
The Tribunal condoned the delay in filing the appeal. While acknowledging the assessee's failure to respond to notices, the Tribunal noted that the first appellate authority did not pass the order on merits and also failed to state the reasons for the decision as required by law. Therefore, in the interest of justice, the matter was remitted back to the CIT(Appeals) for adjudication on merits after providing an opportunity of hearing.
Key Issues
Whether the ex parte order passed by the CIT(Appeals) without proper adjudication on merits and without adhering to principles of natural justice is sustainable. Whether the delay in filing the appeal should be condoned.
Sections Cited
250, 147, 143(3), 50C
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI MANISH AGARWAL
ORDER
PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal has been preferred by assessee against the impugned order dated 10.10.2024 passed in Appeal No. NFAC/2011-12/10054220 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2012-13 wherein the ld. CIT(Appeals) has dismissed assessee’s appeal, confirming the addition of Rs.15,26,000/- made by the Assessing Officer, vide assessment order dated 28.12.2019 passed u/s. 147 r.w.s. 143(3) of the Act, as short term capital gain not shown by the assessee on sale of a plot of land for a consideration of Rs.14,00,000/- against its valuation u/s. 50C of Rs.29,26,000/-.
At the very outset, learned representative for the assessee has drawn the attention of the Bench towards assessee’s delay condonation application and submitted that this appeal has been filed on 17.03.2025 against the impugned order dated 10.10.2024 by a delay of about 97 days. The said delay is due to inadvertent lapse on the part of assessee’s authorized representative. In the interest of justice, the delay caused in filing this appeal is condoned.
Learned representative for the assessee has further submitted that the impugned order has been passed ex parte in violation of principles of natural justice. Prayed that the impugned order be set aside and the first appellate authority be directed to decide the matter afresh on merits after affording opportunity of hearing to the assessee.
Learned DR has supported the impugned order.
Perusal of the impugned order shows that notices were issued by the ld. CIT(Appeals) to the assessee on 12.07.2024, 30.07.2024, 20.08.2024 and 12.09.2024, but the assessee either failed to respond or sought adjournment. Such irresponsive conduct of the assessee cannot be appreciated. However, it is seen that the first appellate authority has not passed the ex parte impugned order on merits, whereas ld. 2 | P a g e CIT(Appeals) was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act. In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to afford last opportunity to the assessee and remit the matter back to the file of learned CIT(Appeals) for adjudication on merits. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the learned CIT(Appeals) for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned CIT(Appeals) shall ensure the observance of the principles of natural justice. The appeal is liable to be allowed accordingly.
In the result, the appeal is allowed for statistical purposes. The impugned order dt. 10.10.2024 is set aside.
Order pronounced in the open court on 16.06.2025 .