Tanwar Logistics Solutions Pvt. Ltd. vs Income Tax Officer

PER MANISH AGARWAL, AM:

This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A), in short] dated 22.02.2024 arising out of the order passed u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’) dated 23.02.2019 for Assessment Year 2017-18.

It is observed that the appeal was filed delayed by 533 days. Before us, an application for condonation of delay was filed. In the said petition, it is stated that the email id on which the communication of appellate proceedings and appellate order u/s 250 were sent, were under the operation of employees of the appellant, who did not check the respective email ids, timely, and the Income Tax Portal of the appellant, on regular basis and due to lack of knowledge and training. Due to this, the assessee remained unaware of the status of appellate proceedings and the order which was decided ex-parte and the appeal was dismissed. The assessee became aware of status of the Appellate Order u/s 250 dated 22.02.2024 recently in the month August, 2025 when the new consultant was appointed for the group and he checked Income Tax portal to take note of pending proceedings. The consultant then suggested and advised the assessee to prefer an appeal before the Hon'ble Tribunal. It is thus, submitted that the delay was neither intentional nor willful and the circumstances are beyond the control of the assessee thus, it is requested to condone the delay.

Per contra, Ld. Sr. DR opposed the request of the assessee for condonation of delay in filing the appeal by the assessee society.

Having considered the arguments of both the parties. We find that there is a reasonable and sufficient cause with the assessee in filing the appeal delayed by 533 days. 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 it. 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. In the instant case there were disputes between the trustees and further the main trustee was undergone medical treatment of cancer. Considering the overall facts and circumstances of the case and in the larger interest of justice, delay in filling the appeal is hereby, condoned and appeal of the assessee is taken for adjudication on merits.

At the outset, from the perusal of the orders of Ld. CIT(A), it is seen that the Ld. CIT(A) has passed the impugned orders ex-parte as the assessee has not filed any reply despite of providing five opportunities to file the submissions. Thus, the ld. CIT(A) partly allowed the appeal filed by the assessee, majorly confirmed the additions made by the AO. The assessee has challenged the orders of CIT(A) for not providing reasonable opportunities of being heard.

Heard the parties and considered the facts of the case. From the perusal of the order of Ld. CIT(A) clearly shows that Ld. CIT(A) has provided various opportunities however, the assessee did not submit any written submission/reply. In this background, the CIT(A) proceeded to disposed-off this appeal of the assessee by partly confirming the additions made by the AO in the assessment order. It is true that assessee did not comply with the notices issued by the CIT(A) and did not file the requisite details/documents in support of the claim made in grounds of appeals. It is also observed that before the AO also, assessee has not filed complete details and information as called for from time to time therefore, the AO has also passed the order based on the material available on record.

Under these facts and circumstances and in the interest of justice, the orders of the lower authorities are hereby, set aside and remand the matter to the file of the AO with the directions to pass the order denovo afresh in accordance with law after giving reasonable opportunity to the assessee. The assessee is also directed to appear before the AO and file all the relevant information in support of the claim.

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