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Facts
The assessee's appeal was filed belatedly by 295 days, with an affidavit explaining the delay, which was deemed reasonable by the tribunal. The Assessing Officer (AO) passed an ex-parte order under section 144 read with section 147 of the Income Tax Act, 1961, assessing the total income at Rs. 43,80,730/-. The assessee appealed to the CIT(A), but the appeal was dismissed for failure to respond to notices and provide documentary evidence.
Held
The tribunal acknowledged the delay in filing the appeal and excused it. While agreeing partly with the respondent's submissions, the tribunal invoked the principle of natural justice and granted the assessee an opportunity to file submissions and evidence. The impugned order was set aside, and the appeal was restored to the AO for a de novo assessment on merits.
Key Issues
Whether the assessee should be granted an opportunity to present further evidence and submissions after the appeal was dismissed by the CIT(A) for non-compliance?
Sections Cited
144, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & SHRI HON’BLE S.R. RAGHUNATHA
आदेश / O R D E R
PER MANU KUMAR GIRI (Judicial Member):
The captioned appeal filed by the assessee is directed against order of the Ld. Commissioner of Income Tax (Appeal)/NFAC, Delhi [‘CIT(A)’ in short] dated 15.07.2024 for Assessment Year 2012-13. that the appeal has been filed belatedly by ‘295’ days and assessee has filed an affidavit explaining the cause for the delay. Having gone through the contents of the same, we find that cause for delay was reasonable, so we excuse the same and proceed to hear the assessee’s appeal on merits.
The brief facts of the case are that the Assessing Officer (A.O.) passed an ex-parte order u/s. 144 r.w.s 147 of the Income-tax Act, 1961 (hereinafter “the Act”) dated 10.12.2019, assessing the total income at Rs. 43,80,730/-. Aggrieved by the said order, the assessee preferred an appeal before the Ld. CIT(A). The Ld. CIT(A) observed that the assessee failed to respond to the notices issued and also failed to furnish any cogent documentary evidence in support of his contentions. Accordingly, the Ld. CIT(A) dismissed the appeal of the assessee and upheld the order of the A.O.
Aggrieved, assessee is in appeal before us.
Before us, the Ld. Counsel for assessee submitted that the assessee may be given more chance to adduce evidence and pleaded for the dismissal of the appeal.
Though we some extent concur with the submissions of Ld. DR, however, keeping in mind the natural justice, we are of the view that the assessee may be granted opportunity to file submissions and evidence. Accordingly, the impugned order is set aside and the appeal is restored back to the file of the A.O for hearing on merits subject to cost of Rs.5,000/- (Rupees Five Thousand) which shall be deposited by the assessee within ‘30’ days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before the AO whose shall proceed for hearing the denovo assessment on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate his case with all evidence and documents, if any, forthwith without any fail, failing which AO shall be at liberty to proceed with the assessment proceedings on merits as per law. Legal issues are open. The ld. AR of the asssessee also assured us that the assessee will prosecute the case diligently before the authorities.
Order pronounced on 18th day of September, 2025 at Chennai.