2023 (3) TMI 710 - AT - Income Tax

CIT (Appeals) dismissed the appeal of the assessee for non-prosecution - HELD THAT - We are of the considered view that this appeal should go back to the CIT (A) for fresh adjudication after hearing the assessee. Thus, we restore this appeal to the file of the CIT (A) who shall adjudicate the appeal on merits after providing adequate opportunity to the assessee. Assessee is directed to co-operate with the proceedings without taking un-necessary adjournments. Grounds raised by the assessee are allowed for statistical purposes.

Summary

Issues:
1. Delay in filing the appeal before the Tribunal.
2. Merits of the case - dismissal of the appeal for non-prosecution and sustaining the order of the Assessing Officer.

Delay in filing the appeal before the Tribunal:
The appeal was filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals) after a delay of 306 days. The delay was explained due to the assessee being in custody and sent to Central Jail, Tihar, from 10.02.2019 till 15.05.2020. The ex-parte order of the Ld. CIT (Appeals) was uploaded on the IT portal on 22.10.2019. The assessee was released during the Covid-19 lockdown and was unaware of the order until consulting a Chartered Accountant in September 2020. The delay was condoned by the Tribunal after finding reasonable cause for the delay and no willful default by the assessee.

Merits of the case - dismissal of the appeal for non-prosecution and sustaining the order of the Assessing Officer:
The Tribunal observed that the Ld. CIT (Appeals) had dismissed the appeal of the assessee for non-prosecution. On the merits, the Ld. CIT (Appeals) had simply sustained the order of the Assessing Officer without providing proper reasoning, resulting in a cryptic order. Considering the totality of facts and circumstances, the Tribunal decided to remand the appeal back to the Ld. CIT (Appeals) for fresh adjudication after hearing the assessee. The Ld. CIT (Appeals) was directed to provide adequate opportunity to the assessee and the assessee was instructed to cooperate without unnecessary adjournments. The grounds raised by the assessee were allowed for statistical purposes. Ultimately, the appeal of the assessee was allowed for statistical purposes.

This judgment by the Appellate Tribunal ITAT DELHI addressed the issues of delay in filing the appeal before the Tribunal and the merits of the case concerning the dismissal of the appeal for non-prosecution and the sustaining of the Assessing Officer's order. The Tribunal condoned the delay in filing the appeal due to the reasonable cause of the assessee being in custody and the subsequent Covid-19 lockdown. On the merits, the Tribunal found the Ld. CIT (Appeals) had not provided adequate reasoning and remanded the appeal back for fresh adjudication after hearing the assessee. The appeal was allowed for statistical purposes, emphasizing the importance of fair and thorough adjudication in tax matters.