Facts of the Case

The assessee, SD Rai Prayas Educational Trust, filed an appeal against the assessment order for Assessment Year 2020-21 before the CIT(A). The appeal was dismissed in limine by the CIT(A) on account of a delay of 909 days without condoning the delay or adjudicating the matter on merits. The assessee explained that the assessment order had been served on an incorrect email ID, namely igmhvbrai@gmail.com, which did not belong to the assessee, whereas the correct registered email ID was vinodraiigms@gmail.com. Due to non-receipt of the assessment order, the assessee was unaware of the proceedings, resulting in the delay in filing the appeal. Aggrieved by the ex-parte dismissal, the assessee approached the Tribunal.

Issues Involved

Whether the delay of 909 days in filing the appeal deserved to be condoned when caused by service of the assessment order on an incorrect email address, whether dismissal of the appeal in limine without considering the explanation for delay violated principles of natural justice, and whether the matter should be restored to the CIT(A) for adjudication on merits.

Petitioner’s Arguments

The assessee contended that the delay was caused due to a bona fide and genuine reason, namely incorrect electronic service of the assessment order by the Assessing Officer on a wrong email ID. It was argued that the assessee had no knowledge of the assessment proceedings and therefore could not file the appeal within time. The assessee submitted an affidavit and documentary evidence from the income-tax portal establishing the correct registered email ID. It was further argued that dismissal of the appeal in limine without condoning the delay and without granting an opportunity of hearing was contrary to principles of natural justice.

Respondent’s Arguments

The Revenue did not object to the condonation of delay or to restoration of the matter to the file of the CIT(A) for fresh adjudication.

Court Order / Findings

The ITAT Kolkata observed that the assessment order had indeed been sent to an incorrect email ID and that the explanation furnished by the assessee for the delay was bona fide and supported by records. The Tribunal held that the CIT(A) erred in dismissing the appeal in limine without condoning the delay and without adjudicating the appeal on merits. It was held that such action violated principles of natural justice and fair play. Accordingly, the Tribunal condoned the delay of 909 days and restored the appeal to the file of the CIT(A) with a direction to decide the matter afresh after providing reasonable opportunity of hearing to the assessee.

Important Clarification

The Tribunal clarified that where delay in filing an appeal is caused due to improper service of orders by the tax authorities, such delay constitutes a sufficient cause and must be condoned. Appeals involving substantial rights cannot be dismissed on technical grounds without granting an opportunity of hearing, especially when the assessee is not at fault.

Final Outcome

The appeal filed by the assessee was allowed for statistical purposes. The delay of 909 days was condoned, and the matter was restored to the file of the CIT(A) to adjudicate the appeal on merits after affording reasonable opportunity of hearing to the assessee.

 Source Link- https://itat.gov.in/public/files/upload/1768297712-xCw3rD-1-TO.pdf

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