RESERVE BANK STAFF QUARTERS SCHOOL,CHENNAI vs. INCOME TAX OFFICER EXEMPTIONS WARD 4, CHENNAI

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 24.02.2025 for Assessment Year 2017-18. that the appeal has been filed belatedly by ‘24’ 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.