The assessee preferred an appeal against the order passed by the Commissioner of Income Tax (Appeals), Trichy, for Assessment Year 2011-12. There was a delay of 1510 days in filing the appeal. The assessee explained that the impugned order was received during the COVID-19 pandemic and that the period from 15 March 2020 to 29 May 2022 was liable to be excluded in terms of the directions of the Hon’ble Supreme Court. It was further submitted that after June 2022, the assessee, being of advanced age, suffered from ill-health and was unable to coordinate effectively with the tax consultant. The appeal was ultimately filed after the assessee received recovery intimation from the Department in August 2024.

The Tribunal, after considering the affidavit and submissions, held that the delay was neither wilful nor deliberate and that the effective delay stood substantially reduced after excluding the COVID-19 period. Being satisfied that the delay was caused by circumstances beyond the control of the assessee, the Tribunal condoned the delay and admitted the appeal for adjudication.

On merits, the Tribunal observed that although the assessment was framed under section 143(3) read with section 147, the final opportunity for hearing was granted only on 30 November 2018. The assessee filed the return of income in response to notice under section 148 on 21 December 2018, and notices under sections 143(2) and 142(1) were issued thereafter. Despite the assessee’s appearance on 28 December 2018, the assessment order was passed hurriedly on 30 December 2018.

The Tribunal noted that the assessee was not afforded effective opportunity to present the case either at the assessment stage or during the appellate proceedings before the Commissioner (Appeals), which were virtually disposed of ex-parte. Holding that the principles of natural justice were violated, the Tribunal set aside the assessment and restored the matter to the file of the Assessing Officer for de novo adjudication.

The Tribunal directed that the reassessment be carried out after granting proper opportunity of hearing to the assessee, subject to payment of costs of ₹40,000 to the Tamil Nadu State Legal Services Authority. The assessee was also directed to cooperate and diligently prosecute the proceedings. The appeal was allowed for statistical purposes.

 Source Link- https://itat.gov.in/public/files/upload/1768291939-6uJegF-1-TO.pdf

Disclaimer

This content is shared strictly for general information and knowledge purposes only. Readers should independently verify the information from reliable sources. It is not intended to provide legal, professional, or advisory guidance. The author and the organisation disclaim all liability arising from the use of this content. The material has been prepared with the assistance of AI tools.