2023 (4) TMI 187 - AT - Income Tax

Condonation of delay - delay of 93 days in filing the present appeal - HELD THAT - When the impugned order was not served on the assessee either by postal mode or by email then the reasons explained by the assessee constitute a reasonable cause for delay in filing the present appeal. Ex-parte order - Unexplained investment in the property - mode of service of notices - assessment order was passed by the AO u/s 144 of the Income Tax Act as the assessee could not appear before the AO for want of service of notices - as per assessee could not appear before the CIT(A), as the notices were issued online on the e-portal or on the e-mail which were not come to the notice of the assessee as she was not aware about the mode of service of notices - HELD THAT - Appeal of the assessee was dismissed for non-prosecution and was not decided on merits. Accordingly, the impugned order of the CIT(A) is set aside. Since, the assessment order was also passed u/s 144 of the Act therefore, the relevant record and explanation to be filed by the assessee requires proper verification and examination at the level of the AO. Accordingly, the matter is remitted to the record of the Assessing Officer for deciding the same afresh after giving an opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues Involved:
The delay in filing the appeal due to non-receipt of the impugned order, condonation of delay, assessment order passed under Section 144 of the Income Tax Act, dismissal of appeal by CIT(A) for non-prosecution, remand of the matter to the Assessing Officer for fresh decision after giving an opportunity of hearing to the assessee.

Delay in Filing the Appeal:
The assessee filed an application seeking condonation of the 93-day delay in filing the appeal, explaining that she was unaware of the impugned order passed by CIT(A) as it was only available on the e-portal of the Department. The delay was deemed unintentional and beyond the control of the assessee as she did not receive the order through post. The Tribunal found the reasons provided by the assessee to be reasonable and condoned the delay in filing the appeal.

Assessment Order Under Section 144:
The AO passed an ex-parte assessment order under Section 144 of the Income Tax Act, adding an amount for unexplained investment in property by the assessee. The assessee challenged this before CIT(A) but could not appear due to non-receipt of notices issued online. The CIT(A) dismissed the appeal for non-prosecution without deciding on merits. The Tribunal set aside the CIT(A) order and remanded the matter to the Assessing Officer for fresh decision after providing an opportunity of hearing to the assessee.

Dismissal of Appeal for Non-Prosecution:
The CIT(A) dismissed the appeal for non-prosecution as the assessee failed to respond to multiple hearing notices over a span of nineteen months. Despite opportunities provided, the appellant did not file any submissions in support of the appeal. The CIT(A) confirmed the AO's order under Section 144 due to incomplete information provided by the appellant. The appeal was dismissed on merits, non-prosecution, and delay.

Remand to Assessing Officer:
Since the appeal was dismissed for non-prosecution without a decision on merits, the matter was remanded to the Assessing Officer for a fresh decision after giving the assessee an opportunity of hearing. The Tribunal allowed the appeal for statistical purposes.

This summary covers the issues of delay in filing the appeal, assessment order under Section 144, dismissal of appeal for non-prosecution, and the remand of the matter to the Assessing Officer for fresh decision after providing an opportunity of hearing to the assessee.