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Facts
The assessee, an agriculturist, failed to file an income tax return. Assessment proceedings were initiated under Section 148 due to an unexplained investment of Rs. 16.73 lakhs in immovable property, leading to an addition under Section 69. The CIT(A) dismissed the appeal ex-parte due to non-compliance, as the assessee's former counsel did not represent him.
Held
The Tribunal condoned a 72-day delay in filing the appeal, noting that notices were not properly served to the assessee's email ID and his previous counsel had a professional fee dispute. The case was remanded to the CIT(A) to provide the assessee a reasonable opportunity to present evidence and explanations, including translated documents, for a fresh adjudication on merits.
Key Issues
The key issues were the condonation of delay in filing the appeal, the validity of the addition under Section 69 for unexplained investment, and whether the assessee was given a proper opportunity of hearing before the CIT(A).
Sections Cited
Section 69, Section 143(3), Section 147, Section 148, Section 250
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC, Delhi dated 29.09.2023 passed u/s 250 of the Income Tax Act, 1961 (henceforth the Act ) which has emanated from the order of the ITO, Ward-3, Moga dated 24.12.2019 passed u/s 143(3) r.w.s. 147 of the Income Tax Act, 1961. belatedly by 72 (seventy-two) days. The assessee has filed an application for condonation of delay along with an affidavit requesting for condonation of delay on the grounds that the assessee is an agriculturist and the appeal before the ld. first appellate authority has been filed by his counsel Mr. Vishal Mittal, C.A. where his e- mail id was mentioned in Form No.
He further submitted that on account of dispute relating to professional fees, the ld. CA has not made any representation to various notices issued by the office of the ld. first appellate authority which has resulted in an ex-parte order passed by the ld. CIT(A) on 29.09.2023 but the said order which might have been received in the e-mail id of the counsel has never been intimated to the assessee. Later, gathering information from the department relating to the disposal of the appeal, the assessee appointed a new counsel who guided him in filing this appeal before the Tribunal which is belated by seventy two days. He prays for condonation of delay and for admission of the appeal to be heard on merits in absence of any willful default or neglect on the part of the assessee.
The ld. D.R. has no objection.
Considering the contents of the affidavit and the facts submitted by the ld. AR of the assessee, we condone the delay and admit the appeal to be heard on merits. but written submissions filed, are on record and we proceed to dispose of this appeal after hearing the Ld DR. Brief facts emerging from the records are that the assessee has entered into an agreement for purchase of immovable property (land) jointly with four other persons, the assessee’s contribution being Rs.16.73 lacs and no return of income has been filed. Proceedings initiated u/s 148 of the Act on 29.03.2019 against which return of income has been filed declared total income of Rs.2,720/- only plus 6.75 lacs as agricultural income.
In course of assessment proceedings there has not been any response to various opportunities issued and as such, the assessee’s portion in the total investment of Rs.75.73 lacs in immovable property has remained unexplained, resulting in an addition u/s 69 of the Act.
The matter carried in appeal before the ld. first appellate authority has been dismissed in limine without adjudicating on the grounds of appeal on merits of the case in absence of any response or submissions to various notices issues from the office of the ld. CIT(A) on at least four different occasions (as evident from para 4.1 of the appellate order).
8. Now, the assessee is before the Tribunal on various grounds contained in Form No. 36 where legally and factual issues has been raised. One of the issues on facts (investment in land) alleged by the AO is wrong and incorrect and the entire proceedings has been initiated and completed on the basis of photocopies of the document and the content of the agreement on the basis of which this assessment has been completed has been totally denied by the assessee at all stages. He further submitted that the original agreement does not exist and as such he has challenged the content of the agreement which has resulted in this addition. A copy of the land purchase deed dated 15.07.2011 has been furnished before the Tribunal in the regional language without any English translation and as such the entire facts are not ascertainable from the said photocopies of the agreement furnished before us.
8.1 However, we also find that the ld. CIT(A) has issued notices electronically in the department portal on various occasions but there has not been any response from the assessee and as such the appeal has been dismissed for non compliance without adjudicating on the grounds contained in Form No. 35 on merits of the case. We find from the memorandum of appeal in Form No. 35 that the e-mail id has stated therein cavishalmittal@gmail.com but it seems no notices of hearing has been issued in the said e-mail id. intimation from his earlier CA , ( due to professional fees dispute ) no proper representation could be made and he prayed for a proper opportunity of hearing.
The ld. DR relied on CIT ( A ) order and submitted that in absence of proper representation he prayed for sustaining the appeal order.
We have considered the written submissions and the materials on record and we find that that the notices has not been issued in the e-mail id as mentioned in Form No. 35 ( it has been issued in the portal ) and even if issued, the earlier CA refused to represent the matter as stated by the assessee, and we also note that the copies of agreement being the basis of the addition has not been furnished along with the translation copy before of the ld. first appellate authority and without which no proper adjudication is possible.
As such, we remand the matter back to the file of the ld. CIT(A) to allow a reasonable opportunity to the assessee to explain his contentions along with all documentary evidences in respect of his grounds of appeal and the assessee is also directed to file all submissions on legal issues and on facts and to fully cooperate in appellate proceedings . open.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in accordance with Rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1963 as on 09.02.2026