Ashwani Kumar vs Ward - 1, Assessing Officer

PER MANISH AGARWAL, AM :

The present appeal is filed by assessee against the order dated 12.11.2024 passed by Ld. Commissioner of Income Tax (A), National Faceless Appeal Centre (“NFAC”), Delhi [“Ld. CIT(A)”] in Appeal No. NFAC/2017-18/10246946 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising out of penalty order dated 29.03.2023 passed u/s 147 r.w.s. 144B of the Act pertaining to Assessment Year 2018-19.

At the time of hearing, no one attended the proceedings on behalf of the Revenue and an adjournment application is filed which was rejected and we proceeded to decide the appeal filed by assessee on the basis of material available on record and after hearing the contention of Ld. AR for the assessee.

It is observed that the appeal was filed delayed by 291 days before the Tribunal. The reasons given in delay condonation petition was that due to lack of communication and negligence on the part of earlier Chartered Accountant, the assessee was not aware of the order in appellate proceedings. When the assessee received a notice for pending penalty proceedings, he contacted the counsel and come to know about the impugned order passed by ld. CIT(A). Under these circumstances, the appeal was filed delayed by 291 days. Ld. AR submits that the delay being bonafide and unintentional and, therefore, it was prayed to condone the delay and decide the appeal on merits.

Considering the overall facts and the circumstances of the case, in our opinion, there is a reasonable and sufficient cause with the assessee in filing the appeal delayed by 291 days before the Tribunal. It must be remembered that in every case of delay, there can be some lapses on the part of the litigant concerned however, that alone is not enough to turn down the plea of assessee and to shut the doors against him. When the explanation does not smack of mala fide or it is not put-forth as a part of dilatory strategy, the Courts must give utmost consideration to such litigant and its right of hearing of appeal on merit ought not to be rejected. Considering the overall facts and circumstances of the case and in the larger interest of justice, we condoned the delay in filing the appeal before the Tribunal.

It is observed that Ld. CIT(A) has not decided the appeal of the assessee on merits, therefore, the matter is remitted to the file of Ld. CIT(A) with the directions to decide the same in accordance with law after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to participate in the appellate proceedings and filed the necessary replies within the time limit provided by the Ld. CIT(A). With these directions, Ground of appeal No. 2 of the assessee is allowed for statistical purposes.

In the result, appeal of the assessee stands allowed for statistical purposes.