2022 (6) TMI 221 - AT - Income Tax

Condonation of delay after the notice was served to the assessee seeking argument on the grounds of appeal - denial of principles of natural justice - As argued NFAC has passed the order without giving the assessee an opportunity of being heard and the order has been passed contending that no evidence placed on record in respect of the delay in filling an appeal by 125 days by the assessee - HELD THAT - The assessee was out of India is transpired from the copy of the passport placed on record. We feel that when the circumstances were beyond the control of the assessee and we considered this compliance of the assessee as valid compliance raised in the appeal memo and was not given specific opportunity to place on record the evidence. Thus, the order of the lower authority is against the principles of natural justice. Looking to this aspect on facts the delay declared on sworn statement and considering the dates given in the pass port that the assessee was out of India the appeal dismissal is not correct and that too without giving an opportunity on this aspect. DR has not objected of submitting this evidence as assessee under the faceless appeal was prevented to submit this detail. Ongoing through this evidence we found force in the contention of the assessee. In the result the delay in filling an appeal by the assessee is condoned. As it is evident that the addition made by the assessing officer in his assessment order are on account of non-submission of the details by the assessee. Therefore, assessee is directed to file all the details connected with the assessment before the assessing officer and make compliance in accordance with law and the assessing officer may frame the assessment after giving proper opportunity to the assessee. Thus, the case is remanded to the file of the Assessing Officer. Appeal of assessee allowed.

Summary

Issues:
Delay in filing appeal before NFAC, Dismissal of appeal by NFAC without giving opportunity of being heard, Compliance with principles of natural justice.

Analysis:
1. The appellant filed an appeal before NFAC against the assessment order for the assessment year 2016-17. The appellant's only ground was the condonation of delay in filing the appeal after receiving a notice from the assessing officer. The assessing officer had completed the assessment based on available material, resulting in a significant difference in the determined income compared to the returned income.

2. The NFAC dismissed the appeal, citing the appellant's failure to provide specific details regarding the delay in filing the appeal on a day-to-day basis. The NFAC relied on the judgment in the case of Satbarg Singh Vs. ITO of Chandigarh Bench to dismiss the appeal due to the unexplained delay of 125 days.

3. The appellant argued that the NFAC passed the order without giving an opportunity to be heard and without considering the reasons for the delay provided by the appellant. The appellant highlighted the communication from NFAC requesting submissions on the grounds of appeal, which led the appellant to believe that the delay reasons were accepted.

4. The appellant contended that the NFAC's order was against the principles of natural justice as no opportunity was granted to submit a reply regarding the delay in filing the appeal. The appellant emphasized that the delay was due to circumstances beyond their control, supported by evidence from the passport showing the appellant was out of India during the period in question.

5. After considering the submissions and evidence, the Tribunal found that the NFAC's decision lacked proper opportunity for the appellant to explain the delay in filing the appeal. The Tribunal concluded that the dismissal of the appeal without considering the circumstances and evidence presented was against the principles of natural justice.

6. Consequently, the Tribunal condoned the delay in filing the appeal by the appellant and directed them to provide all necessary details to the assessing officer for a proper assessment. The case was remanded to the file of the Assessing Officer for further proceedings, and the appeal of the appellant was allowed.

This detailed analysis of the judgment addresses the issues of delay in filing the appeal, dismissal without opportunity of being heard, and compliance with principles of natural justice, providing a comprehensive understanding of the legal proceedings and the Tribunal's decision.