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Facts
The assessee's appeal for AY 2013-14 was dismissed ex-parte by the CIT(A) without deciding on merits. The original assessment was framed under section 143(3) r.w.s. 263 of the Income-tax Act, 1961, with additions on account of drawings and unexplained gifts. The assessee contended that insufficient opportunity was provided.
Held
The Tribunal condoned a delay of 59 days in filing the appeal. Observing that the CIT(A) dismissed the appeal ex-parte without addressing the merits, the Tribunal restored the appeal to the CIT(A) for fresh adjudication. This was done in the interest of justice and subject to the assessee paying costs.
Key Issues
Whether the CIT(A) erred by dismissing the appeal ex-parte without considering the merits and whether the assessee was denied a reasonable opportunity to present their case.
Sections Cited
143(3), 263, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2013-14 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 07.06.2023 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) r.w.s. 263 of the Income-tax Act, 1961 (hereinafter “the Act”) on 21.12.2018.
There is a delay of 59 days in filing the appeal by the assessee.
The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly.
The assessee is an individual filed her return of income on 03.03.2015 for the A.Y 2013-14 declaring total income of Rs.7,73,080/- and assessment was completed u/s. 143(3) of the Act by making addition of Rs. 50,000/- on account of drawings. Subsequently the assessment order was set aside by Ld. PCIT and the A.O completed the assessment u/s. 143(3) r.w.s 263 of the Act by making the addition of gifts received from her husband, Dr. C. Rajkumar, of Rs.24,60,000/- and from her mother-in-law, Mrs. C. Ambica, of Rs.17,30,000/- as unexplained gifts. Aggrieved, the assessee preferred an appeal before Ld. CIT(A). The Ld. CIT(A) has dismissed the appeal ex-parte , without deciding the case on merit.
The Ld. Authorized Representative (AR) of the assessee has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and requested one more opportunity may be given to substantiate her case before the lower authorities.
The Ld. D.R relied on the orders of the authorities below and requested to dismiss the appeal.
We have heard the rival submissions, and perused the materials available on record. We find that the Ld. CIT(A) has dismissed the appeal, without discussing the case on merit. The Ld. A.R has submitted that one more opportunity may be given in the interests of justice to substantiate her case before the lower authorities. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate her case before the Ld. CIT(A) subject to payment of costs of Rs.10,000/-. The same shall be paid by the assessee to Tamil Nadu State Legal Services Authority at Hon’ble High Court of Madras within a period of one month from the date of receipt of this order and produce the receipt before the A.O. Accordingly, we remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the assessee to appear before the Ld.CIT(A) on the date of hearing without fail and furnish complete details for her fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 31st December, 2024.