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Facts
The assessee, an agriculturist, did not file an income tax return as he believed he had no taxable income. An assessment order u/s 144 was passed ex-parte due to non-receipt of notices after his address changed. The appeal to NFAC was dismissed for delay.
Held
The Tribunal held that there was no delay in filing the appeal as the certified copy of the assessment order was received by the assessee only on 31.05.2022 and the appeal was filed within 30 days. The quantum proceedings were restored to NFAC for adjudication.
Key Issues
Whether the appeals filed before the NFAC were beyond the limitation period, and whether penalty proceedings could stand if quantum proceedings are restored.
Sections Cited
144, 139, 148, 271(1)(b), 271(1)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”: NEW DELHI
Before: SHRI M. BALAGANESH
O R D E R
These appeals in ITA Nos. . 2948, 2949 & 2991/Del/2025 for AY 2012-13 arises out of the order of the ld. National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC)’, in short] in Appeal No. ITBA/NFAC/S/250/2024-25/1074321104(1) dated 11.03.2025 against the order of assessment passed u/s 144 of the Income-tax Act, 1961 dated 21.11.2019 (hereinafter referred to as ‘the Act’) by NFAC (hereinafter referred to as ‘ld. AO’).
At the outset, we find that the ld NFAC had dismissed the appeal of the assessee on the ground of delay by stating that appeal has been filed delayed by 915 days. But I find that address of the assessee had changed and no notice had been received by him right from the time of assessment proceedings which ultimately culminated in framing of assessment u/s 144 of the Act on 21.11.2019, making an addition of ₹28 lakhs on account of cash deposits.
The assessee is an agriculturist and had not filed any return of income either u/s 139 or in response to notice issued u/s 148 of the Act as he felt that there was no requirement to file income tax return as there was no taxable income chargeable to tax. Certified copy of the assessment order was received by the assessee only on 31.05.2022 and appeal was filed before the ld NFAC on 22.06.2022, which is within the 30 days from the date of receipt of certified copy of assessment order. In this circumstance, I hold that there was no delay at all before the ld NFAC in filing of appeal by the assessee. Hence, I direct the ld NFAC to admit the appeal of the assessee and adjudicate the same afresh in accordance with the law. The assessee is given liberty to file fresh evidences, if any, before the ld NFAC, which shall be admitted by NFAC. Accordingly the grounds raised by the assessee in are allowed for statistical purposes.
This is an appeal against the confirmation of levy of penalty u/s 271(1)(b) which is also been dismissed by the ld NFAC as not maintainable on the ground of delay. This appeal is also filed on the very same day on 22.06.2022, as stated supra by the assessee which is within 30 days time limit from the date of receipt of certified copy of the penalty order. Hence, the grounds raised by the assessee are allowed for statistical purposes as observation made by me hereinabove shall apply to this appeal also.
This appeal is challenging the levy of concealment penalty u/s 271(1)(c) of the Act. Since the quantum proceedings are restored to the file of the ld NFAC, the penalty proceedings would have no legs to stand on this point in time. Hence they are also restored to the file of ld NFAC for de novo adjudication in accordance with law.
In the result, appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 27/08/2025.