Loading judgment…
Facts
The assessee, a BBA-I year student, filed an appeal against the CIT(A)'s order with a significant delay. The delay was attributed to a misunderstanding between the assessee's father and the local counsel, which led to the impugned order not being communicated to the assessee in a timely manner. The assessee's affidavit supporting the delay condonation was found to be un-controverted.
Held
The Tribunal condoned the delay in filing the appeal, citing the interest of justice and un-controverted facts presented in the assessee's affidavit. It was observed that the CIT(A) had passed an ex-parte order without adjudicating on merits and without stating the points for determination, decision, and reasons, thus violating principles of natural justice.
Key Issues
Whether the delay in filing the appeal should be condoned, and whether the CIT(A) order was passed ex-parte without proper adjudication on merits.
Sections Cited
250, 147
AI-generated summary — verify with the full judgment below
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 19.05.2023 passed in Appeal No. CIT (A), Kanpur-2/10379/2019- 20 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”), wherein the learned CIT(Appeals) has sustained the addition of Rs.24,00,000/- made by the Assessing Officer on account of accommodation entries received by the assessee in the guise of unsecured loans from entry provider, M/s. Nikki Global Finance Ltd. and Rs.60,000/- as commission on such accommodation entries, vide assessment order dated 26.12.2019 passed u/s. 147 of the Act.
None responded for the assessee. Perused the records and heard the ld. Departmental Representative, who has supported the impugned order.
At the very outset, we notice that this appeal has been filed on 07.03.2025 against the impugned order dated 19.05.2023 by a delay of about 598 days. Assessee’s delay condonation application is on record, which states that the appellant, being a student of BBA-I year, resides with his parents at Orai. Due to misunderstanding between the appellant’s father and local counsel, the information in respect of the impugned order was not communicated to the appellant by local counsel. It was only when the Inspector of the department visited assessee’s residence to serve the demand notice, the impugned order came to the limelight of the assessee and the order was downloaded on 28.02.2025 by engaging a Sr. lawyer at Kanpur and the appeal could be filed thereafter. Prayed to condone the delay in filing the appeal and to adjudicate the matter on merits. An affidavit has also been filed on behalf of the assessee in support of the delay condonation application. The facts in respect of delay supported by assessee’s affidavit are un-controverted. Hence, in the interest of justice, we treat the facts as sufficient to condone the delay in filing this appeal.
Perusal of the impugned order shows that notices were issued by the ld. CIT(Appeals) on 06.01.2021, 14.03.2023, 27.03.2023 and 19.04.2024, but remained un-responded by the assessee. However, Ld. CIT(Appeals) passed 2 | P a g e ex parte impugned order, but not on merits. The ld. 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. 19.05.2023 is set aside.
Order pronounced in the open court on 29.05.2025.