Jaipur, February 4, 2025 – The Jaipur Bench of the Income Tax Appellate Tribunal (ITAT) has condoned a delay of 724 days in filing an appeal by the assessee, citing “sufficient cause” and a “humanitarian approach” towards the circumstances leading to the delay. The case, concerning M/s. Choudhary Construction, was remanded back to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh consideration.
Background of the Case
The appeal was filed by Shri Raja Ram Choudhary, proprietor of M/s. Choudhary Construction, against an order passed by the National Faceless Appeal Centre (NFAC) on August 25, 2022, for the assessment year 2012-13. The CIT(A) had upheld an addition of ₹18,80,000 under Section 68 of the Income Tax Act, 1961, which was made by the Assessing Officer (AO) .
The key grounds of appeal included:
- Ex-parte order passed by CIT(A) without the assessee’s participation.
- Invalid reassessment proceedings, arguing that the notice under Section 148 was issued without proper reasons.
- Unjustified addition under Section 68, questioning the legality of the tax demand.
Condonation of Delay
During the hearing, the Bench noted that there was a delay of 724 days in filing the appeal. The delay was attributed to the death of the assessee’s counsel, Shri Mahaveer Lal Jain, on May 30, 2021. The order was sent to the deceased counsel’s email ID, and the assessee remained unaware of the ex-parte order passed on August 25, 2022.
Upon learning about the order through the Income Tax portal, the assessee immediately filed the appeal on October 17, 2024. Supporting affidavits and the death certificate of the counsel were submitted as proof. The ITAT acknowledged that the delay was beyond the assessee’s control and condoned it, allowing the appeal to be heard on merits.
ITAT’s Observations
- The CIT(A) had dismissed the appeal ex-parte, citing multiple non-compliances despite notices issued on January 20, 2021, August 4, 2022, August 11, 2022, and August 17, 2022.
- The assessee argued that he was unaware of these proceedings due to his counsel’s death and did not receive proper communication.
- The ITAT found that the assessee was denied an opportunity to present his case due to circumstances beyond his control.
Final Order
The ITAT set aside the ex-parte order and remanded the matter to CIT(A) for fresh adjudication, directing that the assessee be given a fair opportunity to present his case.
This ruling underscores the Tribunal’s liberal and just approach in cases where procedural delays occur due to genuine hardships. Taxpayers are advised to regularly monitor their cases on the Income Tax portal to avoid similar situations.