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Facts
The assessee filed an appeal against an ex-parte order. The appeal was filed with a significant delay, and the assessee claimed that the delay was due to not being tech-savvy and not being informed of the hearing dates. The assessee received a penalty notice which made them aware of the ex-parte order against them.
Held
The Tribunal found the assessee's explanation for the delay to be reasonable and bona fide. Therefore, the delay was condoned, and the appeal was admitted for hearing. The ex-parte order of the CIT(A) was set aside, and the matter was restored to the CIT(A) for a fresh decision after giving the assessee a reasonable opportunity to be heard.
Key Issues
Whether the delay in filing the appeal against an ex-parte order is to be condoned due to lack of proper notice and opportunity of being heard to the assessee.
Sections Cited
144, 147, 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH ‘SMC’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
Date of Hearing 01.04.2025 Date of Pronouncement 01.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against the ex-parte order dated 17.01.2024 of National Faceless Appeal Centre, Delhi, relating to Assessment Year 2012-13 arising out of order u/s 144/147 of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 07.11.2019 passed by the Income Tax Officer, Ward-2(1)(2), Agra.
2. This appeal has been filed on 06.01.2025 with a delay of almost 10 months. In this regard, the assessee has filed a condonation petition which is reproduced as under:-
Most respectfully the appellant submits as under: 1. That the above appeal arising out of the impugned Ex - Parte order of Ld. Commissioner of Income-tax (Appeals)/NAC dated 17/01/2024.
The assessee filed an appeal before the Honorable Commissioner of Income Tax (Appeals -2) AGRA vide Acknowledgement No. 267544361051219 against the ex-parte assessment order of I.T.O., WARD 2 (1) (2) , AGRA.
3. That the appellant lives in the rural area and earns livelihood for his family by raising buffaloes and selling the milk they produce, he use the basic feature phone and he is not a tech friendly person and he does not use any E mail address the E- mail address moharsingh9632@gmail.com was created by his counsel and he kept the id password in possession and the appellant is not able to access the same and his counsel never told him about any hearing notice and the said ex parte order passed against him unfortunately, no physical hearing notice was served to the assessee by the Id. CIT (Appeals) /NFAC. Consequently, the appeal was dismissed through an ex-parte order dated 17/01/2024 without affording the assessee an opportunity for a fair hearing.
That the appellant received a phone call on 26-12-2024 from income tax office ward 1(3) (2) Agra from mobile no. 8860015803 to receive the penalty notice of 271 (1) (c)of income tax act, in compliance of such phone call the appellant visited to the income tax office on 27-12-2024 and received the said notice and then he came to know the fact that the said appeal was ex parte decided against him. This has resulted in a denial of natural justice, as the assessee's appeal was not decided on its merits. 5. That the Ld. CIT (Appeals) /NFAC also failed to serve his impugned ex-parte order to the appellant. Merely uploading the order on the portal of Income Tax Department cannot be termed as a valid service. 6. That in view of abovementioned facts the actual date of service of the order of Ld. CIT (Appeals) /NFAC is 27-12-2024 when the appellant received the said penalty notice u/s 271(1) (c) there is no real delay in filing second appeal before the HONORABLE ITAT AGRA BENCH. However as per the income tax portal the Id. CIT (Appeals) /NFAC uploaded the impugned order on 17-01-2024. However the appeal is filing on 07-01- 2025 i.e with the imaginary delay of days which is not real delay. 7. That the appellant is also enclosing herewith a duly sworn Affidavit. 8. That the imaginary delay in fifing of appeal is, unintentional bonafide and the appellant was prevented by a sufficient cause. It is, therefore, most respectfully prayed that the imaginary delay of days in filing the appeal may kindly be condoned in favour of natural justice and law.”
2.1. The explanation of the assessee has been considered and it is found to be reasonable and bona fide. We, therefore, condone the delay and admit this appeal for hearing.
Brief facts of the case: The assessee is an individual. In this case, on the basis of information of cash deposit, the assessment was completed u/s 144/147 of the Act in which the Assessing Officer made an addition of Rs.26 lakhs on account of cash deposits in bank accounts no.112010100007229 in Shreyas Gramin Bank (Aryavart Bank), Agra.
Further, the Assessing Officer also made addition of Rs.14,285/- being interest received from the said bank.
4. Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) decided the appeal ex-parte and confirmed the addition made by the Assessing Officer.
Aggrieved with the said order, the assessee is in appeal before us.
The ld. Counsel for the assessee, during the hearing before us submitted that the assessee lives in rural area and earned livelihood for his family by raising buffaloes and selling the milk they produce. It was further submitted that the assessee was not aware of the hearing/proceedings and only when he received a phone call to receive penalty notice u/s 271(1)(c) of the Act, the assessee came to know that that the appeal was decided ex-parte against him. In view of this fact, it is seen that there was a reasonable cause for failure on the part of the assessee to appear before the Ld. CIT(A).
The Ld. DR supported the orders of the authorities below.
Having heard both the parties, we are of the considered view that in the interest of justice, one more opportunity be given to the assessee to represent its case effectively before the ld. CIT(A). We, therefore, set-aside the order of the ld. CIT(A) and restore the matter to his file to pass an order afresh after giving a reasonable opportunity of being heard to the assessee. Further, the assessee is also directed to appear before the ld. CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 1st April, 2025.