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Facts
The assessee company filed three appeals against the orders of the CIT(A) for Assessment Years 2013-14, 2017-18, and 2018-19. There was a delay in filing these appeals, which the assessee attributed to financial setbacks, staff resignations, and lack of information due to the COVID-19 pandemic.
Held
The Tribunal condoned the delay in filing the appeals after considering the assessee's affidavit explaining the reasons. The Tribunal also noted that the CIT(A) had passed ex-parte orders against the assessee due to non-appearance, and the assessee claimed non-receipt of notices. The appeals were set aside and remanded back to the CIT(A) for fresh adjudication.
Key Issues
Whether the delay in filing the appeals should be condoned. Whether the CIT(A) erred in passing ex-parte orders without proper service of notices and opportunity to be heard.
Sections Cited
143(3), 40A(7), 56(2)(viib)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, F: NEW DELHI
Before: SHRI CHALLA NAGENDRA PRASAD & SHRI BRAJESH KUMAR SINGH
ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd. Assessee by Shri Jaspal Singh Sethi, Adv. & Shri Gaurav Gupta, Adv. Revenue by Ms. Monika Singh, CIT(DR) Date of Hearing 07.10.2025 Date of Pronouncement 29.10.2025 ORDER PER BRAJESH KUMAR SINGH, AM, These three appeals by the Assessee are directed against the respective orders of the National Faceless Appeal Centre, Delhi, [hereinafter referred to as the ‘Ld. CIT(A)] dated, 09.11.2023, 27.07.2023 and 21.12.2023 pertaining to Assessment Years (A.Ys.) 2013-14, 2017-18, and 2018-19, arising out of respective assessment orders dated 29.03.2016, 30.12.2019 and 29.04.2021 under Section 143(3) of the Income-tax Act, 1961(hereinafter referred to as ‘the Act’) passed the Ld. Assessing Officer (‘Ld. AO’, for short). Since common issues are involved in all the three appeals, they are disposed of by this consolidated order, for the sake of convenience and brevity.
There is delay in the filing of all three appeals and the details of the delay and the issues involved in the three appeals as submitted by the assessee are reproduced as under:
ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd.
First, we take up the appeal in ITA No.- 3661/Del/2025 for A.Y. 2013-14. The assessee has filed an affidavit dated 06.10.2025 of Shri Salman Akbar Jalaluddin, Director of the Company, explaining the reasons for the delay of 489 days in filing the appeal before us, which is reproduced as under:
ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd. “
The Ld. CIT (DR) submitted that the delay is excessive and cannot be condoned.
We have heard both parties and perused the material and reasons given by the assessee in its affidavit. In view of the facts stated therein, we are satisfied that the assessee was prevented by sufficient cause from filing the appeal within the prescribed time. 4 ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd. Therefore, we condone the delay in filing of this appeal and admit the present appeal of the assessee for hearing. Similar affidavits have been filed by the assessee for the assessment years 2017-18 and 2018-19 in ITA No.- 3662-3663/Del/2025. In view of the similar facts and reasons, the delay in filing the said appeals for A.Ys. 2017- 18 and A.Y. 2019-20 are also condoned, and the appeals are admitted for adjudication.
The assessee is engaged in the business of real estate development of commercial and residential projects in India. The basis of the addition made in the assessment proceedings has already been detailed in the chart reproduced above in para no. 2 of this order.
Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A), who dismissed the appeal of the assessee ex- party, wherein the details of the hearing of opportunity given by the Ld. CIT(A) are placed on page no. 13 of his order, and the same is reproduced as under:
ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd. Date of Deadline of Outcome Notice hearing / submission fixed as per the notice 27.12.2020 11.01.2021 No compliance nor any request for adjournment 05.07.2023 17.07.2023 No compliance nor any request for adjournment
Aggrieved with the said order, the assessee is in appeal before us, on the following grounds of appeal: “1. That the appellate order as passed is against law and facts of the case.
2. That the learned Commissioner of Income Tax (Appeals) has erred in rejecting the appeal filed by the appellant merely on the ground of non-appearance on alleged two dates of hearing as stated in the appellate order without mentioning about any service of the said two notices.
3. That no proper service of notices is even alleged by the learned Commissioner of Income Tax (Appeals) before rejecting the appeal filed by the appellant.
4. That the learned Commissioner of Income Tax (Appeals) has erred in not adjudicating on the ground raised by the appellant in appeals filed before him.
5. That the appellate order is not sustainable on the facts and circumstances of the case and is liable to be set aside to be passed again after providing proper opportunity to the appellant.
6. That the appellant reserves the right to alter grounds of appeal / raise additional grounds of appeal including all grounds raised before Commissioner of Income Tax (Appeals).”
The Ld. AR submitted that in view of the facts that the notice of hearing issued by the Ld. CIT(A) was not received by the assessee and ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd. therefore, in the interest of justice and to give one more opportunity to the assessee, the order of the Ld. CIT(A) may be set aside and remanded back to his file for fresh adjudication. In this regard, the assessee also filed an affidavit dated 08.10.25 undertaking that the assessee company will appear before the Ld. CIT(A) if the matter was set aside to his file. The relevant extract of the affidavit is reproduced as under: “ ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd.
We have heard both the parties and perused the material available on record. It is seen that the Ld. CIT(A) passed the order ex- parte. The assessee states that Ld. CIT(A) rejected the appeal filed by the assessee on the ground of non-appearance by the assessee on the two dates of hearing as stated in the appellate order, but submits that the said two notices were not received by the assessee and no reference of its service upon the assessee is even stated by the Ld. CIT(A) in his order, before rejecting the appeal filed by the appellant. 10.1 Further, the assessee has also filed an undertaking from the Director of the company that the assessee will comply with the timelines and instructions of the CIT(Appeal) as and when the matter is taken up for hearing after being set-aside by the Tribunal and that no unnecessary delay shall be caused or any unnecessary adjournments shall be sought by the appellant.
Therefore, in the interest of justice, and to allow one more opportunity to the assessee, we set aside the order of the Ld. CIT(A) and restore the matter to the file of the Ld. CIT(A) for fresh adjudication after affording reasonable opportunity of being heard to the assessee. Further, the assessee will be at liberty to fille any supporting details / evidence / explanation in support of its claim. 8 ITA No.- 3662 & 3663/Del/2025 ILD Millennium Pvt. Ltd. 11. In the result, the appeal of the assessee is allowed for statistical purposes - 3663/Del/2025 for A.Ys. 2017-18 and 2018-19 12. The facts and issues involved in (A.Y. 2017-18) and 3663/Del/2025 (A.Y. 2018-19) are identical to those in ITA No. 3661/Del/2025 (A.Y. 2013-14). Therefore, our findings given hereinabove shall apply mutatis mutandis to these appeals also. 13. In the result, all three appeals filed by the assessee are allowed for statistical purposes. Order pronounced in the open court on 29th October, 2025.