BALAMAHENDRAN ,CHENNAI V. ITO, NCW-8(1), CHENNAI

ITA 417/CHNY/2025

AI Insights

The case involves an appeal by Shri Balamahendran against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which was passed under section 250 of the Income Tax Act, 1961 for the Assessment Year 2017-18. The appeal was initially delayed due to the assessee's personal circumstances, specifically the severe illness and death of his father, which prevented him from attending to legal notices and proceedings. The Tribunal found sufficient reason for the delay and condoned it, subsequently deciding to remit the case back to the AO for a fresh assessment, as the initial assessment was made on a best judgment basis under section 144 of the Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 298611 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GOWTHAMI MANIVASAGAM
• Assessee Lawyers: B. AGNUS JENNIFER
• Keywords: Principle of natural justice
• Section: 250; 43

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘बी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी अिमताभ शु᭍ला, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI AMITABH SHUKLA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 417/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year:2017-18 Shri Balamahendran, No.19/4/2, Anantharama Krishnan Street, Saligramam, Chennai – 600 093. PAN: AIRPB 2962R Vs. The Income Tax Officer, Non-Corporate Ward 8(1), Chennai (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Ms. B. Agnus Jennifer, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Ms. Gowthami Manivasagam,JCIT सुनवाई कᳱ तारीख/Date of Hearing : 23.04.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 23.04.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi dated 14.10.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18. 2. There is a delay of 43 days in filing the appeal. The assessee has filed condonation application along with affidavit stating therein - 2 - ITA No.417/CHNY/2025 the reason for belated filing of this appeal. The reasons stated in the affidavit for belated filing stated is that during the appellate proceedings, the assessee’s father was severely ill and was under hospitalization. As a son, the assessee was taking care of him and in-spite of continuous medical support, the assessee’s father had passed away on 10.10.2024. The assessee was deeply affected and emotionally drained. Therefore the assessee had not checked his e- mail and he is unaware of the notices and order issued by the CIT(A). Only on receipt of demand notice dated 03.02.2025, the assessee checked the e-portal and came to know about the order passed by the CIT(A). Then, immediately the assessee sought assistance from his Chartered Accountant and filed the appeal before the Tribunal, which has resulted in delay of 43 days. On perusal of the aforesaid reason stated, we are of the view that the assessee cannot be faulted for non-filing the appeal on time. There is sufficient reason and no latches can be attributed to the assessee for belated filing of this appeal. Hence, we condone the delay in filing the appeal and proceed to dispose off the appeal on merits. 3. At the very outset, we notice that the CIT(A)’s order is ex- parte, since there was no compliance from the assessee to the three notices issued from the office of the First Appellate Authority. - 3 - ITA No.417/CHNY/2025 Further, we also note that the assessment has been completed on best judgment basis u/s.144 of the Act on 30.03.2022. 4. The Ld.AR submitted that during the appellate proceedings, the assessee was taking care of his father who was severely ill and was under hospitalization and passed away on 10.10.2024. Since the assessee was completely in hospital taking care of his father, he could not check his e-mail and was unaware of the notices issued by the CIT(A). Hene, the assessee could not respond to the notices or appear before CIT(A) during the appellate proceedings. The Ld.AR further submitted that the assessee is unaware of the order passed by the CIT(A) till he receives the demand notice. It was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case, since the order passed by the AO is also best judgment assessment. 5. The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. - 4 - ITA No.417/CHNY/2025 6. We have heard rival submissions and perused the materials on record. Since there was no response by the assessee to the notices issued, the CIT(A) passed ex-parte order. The assessee was unaware of the notices issued from the office of the CIT(A) since the assessee’s father was hospitalized and passed away during the appellate proceedings. Therefore, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case. Since the proceedings before the AO is also best judgment assessment, we deem it appropriate to restore the matter to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 23rd April, 2025 at Chennai. Sd/- Sd/- (अͧमताभ शुÈला) (AMITABH SHUKLA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चेÛनई/Chennai, Ǒदनांक/Dated, the 23rd April, 2025 - 5 - ITA No.417/CHNY/2025 RSR आदेश कȧ ĤǓतͧलͪप अĒेͪषत/Copy to: 1. अपीलाथȸ/Appellant 2. Ĥ×यथȸ/Respondent 3. आयकर आयुÈत /CIT, Chennai 4. ͪवभागीय ĤǓतǓनͬध/DR 5. गाड[ फाईल/GF. "