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2021 (4) TMI 197 - AT - Income TaxEx-parte order passed by CIT(A) - Non-appearance before CIT(A) since the affairs of the assessee company not having been properly looked into by the person incharge at the relevant point of time - HELD THAT - In the circumstances explained by the assessee regarding the affairs of the assessee company not having been properly looked into by the person incharge at the relevant point of time, the non-appearance of the assessee before the CIT(A) was owing to reasonable cause. In the given facts and circumstances of the case, we are of the view that the assessee should be afforded an opportunity of being heard before the CIT(A). We therefore set aside the order of the CIT(A) and remand the issues raised by the assessee in the appeal before CIT(A) for fresh consideration by the CIT(A) after affording assessee opportunity of being heard. The assessee is directed to co-operate in the set aside proceedings for expeditious disposal of the appeal by the CIT(A). The appeal of the assessee is accordingly treated as allowed for statistical purposes.
Issues: Appeal against order dated 21.06.2018 of CIT(A)-3, Bengaluru for Assessment Year 2015-16; Delay of 344 days in filing the appeal; Condonation of delay; Merits of the order of CIT(A) being an ex-parte order; Non-appearance of the assessee before CIT(A); Setting aside the order of CIT(A) and remanding the issues for fresh consideration.
Delay in Filing Appeal - Condonation: The appeal was filed with a delay of 344 days, and the reasons for the delay were explained by the Director of the Assessee. The delay was attributed to the involvement of Executive Directors in legal matters, their premises being occupied by a third party, and subsequent resignation. The Tribunal found the reasons acceptable, considering the evidence provided, such as copies of resignation letters, financial statements, and legal notices. The Tribunal held that the delay was not deliberate or negligent, and there was a reasonable cause for the delay, thus condoning the delay. Merits of the CIT(A) Order - Ex-Parte Order: The order passed by the CIT(A) was deemed an ex-parte order as the notice for hearing was returned unserved initially. Subsequently, a representative of the assessee appeared before the CIT(A), and a new address was furnished. The Tribunal noted discrepancies in the service of notices and found that the non-appearance before the CIT(A) was due to reasonable cause. Considering the circumstances, the Tribunal set aside the order of the CIT(A) and remanded the issues for fresh consideration, directing the assessee to cooperate for expeditious disposal of the appeal. Non-Appearance Before CIT(A) - Setting Aside and Remand: The assessee's non-appearance before the CIT(A) was attributed to the affairs of the company not being properly managed at the relevant time. The Tribunal found this to be a reasonable cause and decided to afford the assessee an opportunity to be heard before the CIT(A). Consequently, the order of the CIT(A) was set aside, and the issues raised in the appeal were remanded for fresh consideration, with directions for the assessee to cooperate for a prompt resolution. In conclusion, the Tribunal allowed the appeal for statistical purposes, highlighting the condonation of delay, the nature of the CIT(A) order, and the subsequent remand of issues for fresh consideration. The decision emphasized providing the assessee with a fair opportunity to present their case before the CIT(A) and ensuring a just and expedited resolution of the appeal.
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