SHRI SATYA PRAKASH BHADORIYA ,GWALIOR vs. PCIT-1, GWALIORD, GWALIOR
Facts
The assessee filed an appeal against an order passed by the Pr. Commissioner of Income-tax (PCIT) u/s. 263 of the Income-tax Act, 1961, which had set aside the assessment order and sent it back to the Assessing Officer for fresh examination of cash deposits. The appeal was filed with a delay of 357 days, attributed to the non-service of notice u/s. 263 and the outbreak of the Covid-19 pandemic.
Held
The Tribunal condoned the delay considering the assessee's affidavit and Supreme Court directions regarding COVID-19 related delays. The Tribunal noted that the impugned order was passed ex parte, violating principles of natural justice, as the assessee did not respond to the notice issued by the PCIT. Therefore, the Tribunal decided to afford a last opportunity to the assessee.
Key Issues
Whether the impugned order passed by the PCIT u/s. 263 was bad in law due to violation of principles of natural justice and whether the delay in filing the appeal should be condoned.
Sections Cited
263, 143(3), 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE : SHRI SUNIL KUMAR SINGH, JUDICIAL MEMBER AND SHRI BRAJESH KUMAR SINGH, ACCOUNTANT MEMBER ITA No. 59/Agr/2022 Assessment Year: 2011-12
Shri Satya Prakash Bhadoriya, Vs. Principle C.I.T., In front of Police Station, Gwalior. Subhash Ganj, Dabra, Gwalior. PAN : AHHPB6068P (Appellant) (Respondent) Assessee by Sh. Rajendra Sharma, Advocate & Sh. Manuj Sharma, Advocate Department by Sh. Sukesh Kumar Jain, CIT/DR Date of hearing 24.04.2025 Date of pronouncement 19.05.2025
ORDER PER: Sunil Kumar Singh, Judicial Member: This appeal has been preferred by assessee against the impugned order dated 26.03.2021 passed u/s. 263 of the Income-tax Act, 1961 (hereinafter referred to as “Act”) by Pr. Commissioner of Income-tax (PCIT), Gwalior, wherein the assessment order dated 21.12.2018 passed u/s. 143(3) r.w.s. 147 of the Act was set aside and the matter was sent back to learned Assessing Officer for the examination of the issue in respect of cash deposit of Rs.5,00,000/- on 08.10.2010 and Rs.10,00,000/- on 09.10.2010 etc. afresh.
ITA No.59/Agr/2022
At the very outset, it has been informed by learned representative for
the appellant/assessee that this appeal was filed on 17.05.2022 against the
impugned order dated 26.03.2021 by a delay of about 357 days as reported
by the Registry of this Tribunal. Learned AR has submitted in respect of the
assessee’s delay condonation application supported with assessee’s affidavit
that the notice u/s. 263 was not served upon the assessee in person. The e-
mail ID of assessee’s Advocate was given to the department and the
assessee was not informed of the said order. The assessee came to know in
respect of the impugned order only when consequential order u/s. 143(3) was
passed. Learned AR further submitted that another reason for the assessee
for not having the knowledge of passing the impugned order is also on
account of the outbreak of Covid-19 Pandemic.
We take judicial notice of the fact that most of the duration of delay
caused in filing appeal before this tribunal overlaps the period of spread of
global pandemic COVID-19. This fact has also been taken care of by Hon’ble
Supreme Court in Misc. app. No. 21/2022 in Misc. app No. 665/2021 in suo-
moto W.P(c) No. 3/2020 in civil original jurisdiction and in re-cognizance of
extension of limitation with miscellaneous application No. 29/2022, in
miscellaneous application No. 655/2021 in suo-moto petition(c) no. 03/2020
and vide para 5(1) of its order dated 10.01.2022 directed that its order dated
23.03.2020 is restored and in continuation of the subsequent order dated 2 | P a g e
ITA No.59/Agr/2022
08.03.2021, 27.04.2021 and 23.09.2021, it is directed that the period from
15.03.2020 till 28.02.2022 shall stand excluded for the purpose of limitation
as may be prescribed under any general or special laws in respect of all
judicial or quasi judicial proceedings after exclusion of the aforesaid duration.
In view of the uncontroverted affidavit of assessee and the aforesaid
directions issued by Hon’ble Supreme Court, we condone the delay.
Learned AR has further submitted that the impugned order has been
passed ex parte in violation of principles of natural justice. Prayed to set aside
the same and prayed to afford an opportunity to the assessee for making
submissions before learned PCIT.
Learned DR has supported the impugned order.
Perusal of the impugned order dated 26.03.2021 passed u/s. 263 of the
Act by learned PCIT, Gwalior shows that a notice dated 09.03.2021 was
issued to the assessee fixing the date of hearing on 17.03.2021. The
assessee did not respond to the only notice issued to the assessee, hence ld.
PCIT proceeded to pass the impugned order. In the totality of facts and
circumstances of the case 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 PCIT for deciding afresh. We order
accordingly. We further direct the assessee to be diligent and cooperative in
attending the hearings and making submissions before the learned PCIT for 3 | P a g e
ITA No.59/Agr/2022
the expeditious and effective disposal. Assessee shall refrain from seeking
any adjournment but for compelling and unavoidable reasons. Needless to
say that learned PCIT shall ensure the observance of the principles of natural
justice.
In the result, the appeal is allowed for statistical purposes.
Order pronounced in the open court on 19.05.2025.
Sd/- Sd/- (BRAJESH KUMAR SINGH) (SUNIL KUMAR SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 19.05.2025 *aks/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, Agra
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