The assessee filed an appeal along with an application seeking condonation of delay of 611 days against the order dated 28 September 2023 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, for Assessment Year 2020–21. The appellate order arose from an ex-parte assessment order dated 07 September 2022 passed under section 144 read with section 144B of the Income-tax Act, 1961.

The assessee explained that the delay in filing the appeal was due to lack of knowledge of the impugned appellate order. Upon considering the explanation, the Tribunal observed that the delay did not appear to be deliberate or mala fide and that the assessee had not derived any undue benefit from such delay. Accordingly, the delay of 611 days was condoned in the interest of justice.

On merits, the assessee contended that both the assessment order as well as the appellate order were passed ex parte, without granting effective opportunity of being heard, thereby violating the principles of natural justice. A request was made to restore the matter to the file of the Assessing Officer for fresh adjudication. The Department did not raise any objection to this request.

Upon examination of the records and considering the submissions of both parties, the Tribunal found that the Commissioner (Appeals) had passed the impugned order ex parte by confirming the additions made by the Assessing Officer, who himself had completed the assessment ex parte. The Tribunal held that such an approach was clearly in breach of the principles of natural justice.

In view of the above, and in the interest of justice, the Tribunal set aside both the appellate order dated 28 September 2023 and the assessment order dated 07 September 2022. The matter was restored to the file of the Assessing Officer for fresh adjudication in accordance with law, after affording fair and reasonable opportunity of hearing to the assessee.

The appeal was thus allowed for statistical purposes.

Source Link- https://itat.gov.in/public/files/upload/1767948804-bTAGRP-1-TO.pdf

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