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Facts
The appeals were filed by the assessee against orders dated 31.01.2024 passed by the CIT(A) for AY 2013-14, under section 144 r.w.s. 147 and section 154 of the Income Tax Act. The appeals were filed with a delay of 188 days, which was condoned by the tribunal. The assessment order for AY 2013-14 was an ex-parte order passed under section 147 r.w.s. 144.
Held
The tribunal condoned the delay of 188 days after finding the reasons to be bonafide. The tribunal noted that the assessment order was ex-parte and the assessee was not given an opportunity before passing the rectification order. Following a similar order in the assessee's own case for other assessment years, the tribunal decided to remand the matter to the Assessing Officer for fresh consideration.
Key Issues
Whether the assessment order passed ex-parte without affording proper opportunity to the assessee is valid? Whether the delay in filing the appeal can be condoned?
Sections Cited
144, 147, 154, Income Tax Act, 1961
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Before: Shri S.S. Viswanethra Ravi & Shri Manoj Kumar Aggarwal
O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
Both the appeals by the assessee are directed against different orders both dated 31.01.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2013-14 under section 144 r.w.s. 147 as well as under section 154 of the Income Tax Act, 1961 [“Act” in short].
We find that both the appeals are filed with a delay of 188 days. The assessee filed an affidavit for condonation of delay explaining reasons for the said delay and prayed for condonation of that delay. On perusal of the condonation petition and upon hearing both the parties, we find that the reasons explained by the assessee are bonafide and therefore, the delay is condoned and admitted both the appeals for adjudication.
At the outset, the ld. AR Shri J. Saravanan, Advocate submits that against the assessment order dated 27.12.2019 under section 147 r.w.s. 144 of the Income Tax Act, 1961 [“Act” in short] for AY 2013-14, the assessee preferred an appeal before the ld. CIT(A) on 24.01.2020. He submits that the assessment order passed by the Assessing Officer is an exparte order. He vehemently argued that before passing rectification order under section 154 of the Act, the Assessing Officer should have afforded an opportunity. He drew our attention the order dated 21.08.2024 passed in 1476 & 1477/Chny/2024 for assessment years 2015-16, 2016-17 & 2017-18 in assessee’s own case and submits that on similar facts, the Tribunal remanded the matter to the file of the Assessing Officer on payment of costs. The ld. AR prayed that the appeal filed against the order dated 27.12.2019 passed under section 147 r.w.s. 144 of the Act may be remanded to the file of the Assessing Officer to substantiate its case.
The ld. DR Shri R. Raghupathy, Addl. CIT submits that opposed the same and drew our attention to the order of authorities below and argued that the ld. CIT(A) issued notice to the assessee for filing written submissions, but, however, the assessee did not file its written submissions before the ld. CIT(A). He vehemently argued that the costs may be imposed in case this Tribunal afford an opportunity by remanding the matter to the file of the Assessing Officer.
Taking into consideration the facts and circumstances of the case, by following the order of the Tribunal (supra), the addition involved therein and in the interest of justice, we deem it proper to remand the appeal to the file of the Assessing Officer for fresh consideration subject to the condition of payment of ₹.15,000/- towards cost in favour of the State Legal Aid Authority, Hon’ble High Court of Madras within 30 days from the date of receipt of this order. The Assessing Officer shall satisfy on production of receipt of payment of cost imposed hereinabove and to decide the issue in accordance with law after considering the documentary evidence as may be filed by the assessee. Since the quantum appeal is remanded to the file of the Assessing Officer, the appeal in filed against the order under section 154 of the Act become infructuous and accordingly, dismissed.
Order pronounced on 19th December, 2024 at Chennai.