MEHARJIT SINGH DHILLON,BATHINDA vs. INCOME TAX OFFICER WARD 1(1), BATHINDA
Facts
The assessee's appeal against an ex-parte assessment was dismissed by the CIT(A) due to a 160-day delay in filing. The assessee claimed the delay was due to non-communication from his previous chartered accountant regarding the assessment order. The CIT(A) rejected the appeal without providing an opportunity for the assessee to explain the delay.
Held
The Tribunal remanded the case back to the CIT(A) to allow the assessee an opportunity to explain the delay in filing the appeal with supporting evidence. If the explanation is satisfactory, the CIT(A) should then adjudicate the appeal on its merits. The Tribunal did not express an opinion on the merits of the case.
Key Issues
The key legal issue was whether the CIT(A) erred in dismissing the appeal due to a delay in filing without providing the assessee an opportunity to explain the delay as per Section 249(2) of the Act.
Sections Cited
Section 250, Section 144, Section 144B, Section 249(2), Section 69A
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Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR
Before: SH. MANOJ KUMAR AGGARWAL & SH. UDAYAN DASGUPTA
Per Udayan Dasgupta, J.M.:
This appeal is filed by the assessee against the order of the ld. CIT (A) NFAC, Delhi dated 17.03.2025 passed u/s 250 of the Income Tax Act, 1961 (henceforth the Act) which has emanated from the order of the AO (Assessment Unit) dated 22.12.2022
passed u/s 144 r.w.s. 144B of the Income Tax Act, 1961.
2 I.T.A. No. 426/Asr/2025 Assessment Year: 2021-22 2. The assessee has taken two grounds of appeal in Form No. 36 and the pertinent
issue is regarding the rejection of the appeal by the ld. first appellate authority by
refusing to admit the same u/s 249(2) of the Act, on account of delay of 160 (one
hundred and sixty days), in filing the same.
We find that the assessment in this case has been completed ex-parte , in absence
of any explanations or response to various notices issued by the AO in course of
assessment proceedings, on a total income of Rs.84.19 lacs (against the income
returned at Rs.81,510/-) with additions u/s 69A of the Act of Rs. 20.05 lacs and
additions on account of short-term capital gains amounting to Rs. 63.32 lacs.
The matter carried in appeal before the ld. CIT(A) has been dismissed as non-
maintainable u/s 249(2) of the Act, on account of delay in filing the same by 160 days.
The ld. AR in course of hearing submitted that the delay has not been condoned by the
ld. first appellate authority even though the reasons for the delay, has been clearly
stated in Form No. 35, to have arisen on account of non-communication and non -
cooperation by the earlier chartered accountant of the assessee who failed to inform
the appellant regarding the completion and receipt of the assessment order.
He further submitted that before rejection of the appeal as not maintainable, it
was incumbent on the part of the ld CIT(A) to allow an opportunity of hearing to the
assessee, to put forth his submissions, which has not been done in the instant case and
3 I.T.A. No. 426/Asr/2025 Assessment Year: 2021-22 the assessee prayed for an opportunity of hearing before the ld. first appellate authority
so that the delay can be satisfactorily explained with sufficient documentary evidences.
The ld. DR relied on the order of the ld. CIT(A) but has no objection if the matter
is remanded back to the file of the ld. CIT(A).
We have heard the rival submissions and considered the materials on record and
we find that there was a delay of 160 ( one hundred sixty) days in filing the appeal
before the ld. first appellate authority and in absence of sufficient cause being shown
supported by necessary evidences , the ld. first appellate authority has dismissed the
appeal u/s 249(2) without adjudicating the grounds of appeal contained in Form No.
35 on merits.
In the interest of justice, we remand the matter back to the files of the ld. CIT(A)
to allow an opportunity to the assesse to explain the reasons for the delay along with
necessary evidences if any and after satisfactorily explanations of the same, the
grounds of appeal contained in form 35 may be adjudicated on merits after admission
of the appeal. As such, we remand the matter back to the files of the ld. first appellate
authority to allow an opportunity to the assessee to satisfactorily explain the reasons
for the delay and thereafter to proceed to dispose of the appeal on merits.
The assessee is also directed to file all documentary evidences and submissions
and in support of his contention and to fully co-operate in the appellate proceedings.
4 I.T.A. No. 426/Asr/2025 Assessment Year: 2021-22 10. We have not expressed any opinion on merits of the case and all issues are left
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
Sd/- Sd/- (Manoj Kumar Aggarwal) (Udayan Dasgupta) Accountant Member Judicial Member *GP/Sr.PS* Copy of the order forwarded to: (1) The Appellant: (2) The Respondent: (3) The CIT concerned (4) The Sr. DR, I.T.A.T True Copy By Order
