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Facts
The assessee, engaged in manufacturing iron and steel, declared a loss but was assessed income at Rs. 4,42,16,486 after not responding to statutory notices during assessment. The CIT(Appeals) also issued notices which were not complied with, leading to the dismissal of the assessee's appeal. The assessee claimed the impugned order was not communicated and they were embroiled in SARFAESI proceedings.
Held
The Tribunal condoned the delay of 295 days in filing the appeal, finding sufficient reason for the belated filing. The Tribunal noted that the assessee faced SARFAESI proceedings and claimed notices were not served properly. The Tribunal remitted the issues back to the Assessing Officer for fresh consideration.
Key Issues
Whether the appeal filed by the assessee was time-barred and if the delay should be condoned. Whether the assessee was properly served with notices by the lower authorities.
Sections Cited
144
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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU
Per Laxmi Prasad Sahu, Accountant Member
This appeal is against the DIN & Order No.ITBA/NFAC/S /250/2022-23/1047608023(1) dated 23.11.2022 of the CIT(Appeals), National Faceless Appeal Centre, Delhi [NFAC] for the AY 2017-18.
At the outset, the appeal by the assessee is time barred by 295 days and the assessee has filed petition for condonation of delay and affidavit stating that the impugned order was not communicated to the assessee on the email-id mentioned by the assessee in the e-filing portal. The pendency of the appeal before the CIT(Appeals) was lost sight of since the assessee was embroiled in SARFAESI proceedings. The impugned order came to the notice during internal audit and the appeal was filed before the Tribunal belatedly. Hence it was prayed that the delay may be condoned and appeal admitted.
After hearing both the parties and considering the submissions of the assessee for belated filing of the appeal, we are of the view that there is sufficient reason for not filing appeal within time and we condone the delay of 295 days and take up the appeal for adjudication.
The brief facts of the case are that the assessee is engaged in the business of manufacture of basic iron and steel. The assessee filed return of income on 30.3.2018 declaring a loss of Rs.3,16,96,117. The case was selected for scrutiny and statutory notices were issued to the assessee. During assessment proceedings, the AO issued various notices to the assessee, but the assessee did not respond. Finally show cause notice was issued which also remained unresponded. Accordingly the AO assessed taxable income at Rs.4,42,16,486.
On appeal, the CIT(Appeals) issued various notices which were not complied by the assessee. Accordingly, the CIT(Appeals) confirmed the order passed by the AO and dismissed the appeal of the assessee.
The ld. AR for the assessee submitted that the management of the company was not aware of the notices issued by both the authorities and the assessee company was also facing SARFAESI proceedings. The notice issued by the CIT(A) was not served to the assessee on the registered email-id with the department. He requested for another opportunity of hearing before the AO and undertook to substantiate its case with necessary evidence.
The ld. DR opposed the request of the ld. AR and submitted that both the authorities provided various opportunities to the assessee.
We have heard both the parties and considered the material on record. The AO passed assessment order u/s. 144 and before the CIT(Appeals) there was no representation by the assessee. The assessee has submitted that during the assessment proceedings the assessee was facing SARFAESI proceedings and that the notice issued by the CIT(Appeals) was not served on the assessee on its registered email-id with the department and hence could not be represented by the assessee before the lower authorities. The CIT(Appeals) has passed ex parte order. In the interest of justice, we remit the issues in appeal to the file of Assessing Officer for fresh consideration and decision as per law after giving proper opportunity of being heard to the assessee. The assessee is directed to communicate its correct email-id, mobile no. etc. to the department and produce all necessary evidence in support of its case and not seek unnecessary adjournment for early disposal of the case.
In the result, the assessee’s appeal is allowed for statistical purposes.
Pronounced in the open court on this 19th day of January, 2024.