CHATTAR SINGH,MOHALI V. INCOME TAX OFFICER, WARD-6(4), MOHALI

ITA 459/CHANDI/2024

AI Insights

The case involves an appeal by the assessee, Chattar Singh, against the order of the CIT(A) which dismissed the appeal on grounds of non-payment of advance tax and filing beyond the statutory time limit. The assessee contended that they did not receive deficiency letters due to incorrect email communication, which deprived them of the opportunity to rectify the deficiencies. The tribunal found merit in the assessee's argument, noting the procedural lapse in communication, and thus set aside the CIT(A)'s order and remanded the case for a fresh hearing.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126040 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-04-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: VIVEK VARDHAN
• Assessee Lawyers: PARIKSHIT AGGARWAL
• Keywords: Condonation of delay; Set aside; Principle of natural justice; Assessment record; Procedural lapse
• Section: 64

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “ए” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “A”, CHANDIGARH HEARING THROUGH: PHYSICAL MODE ŵी लिलत क ुमार, Ɋाियक सद˟ एवं ŵी मनोज क ुमार अŤवाल, लेखा सद˟ BEFORE: SHRI. LALIET KUMAR, JM & SHRI. MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No. 459 /Chd/ 2024 िनधाŊरण वषŊ / Assessment Year : 2011-12 Chattar Singh Village Manana, P.O Behlolpur Mohali बनाम The ITO Ward -6(4) Mohali ˕ायी लेखा सं./PAN NO: DIUPS4334C अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : Shri Parikshit Aggarwal, C.A. and Smt. Shruti Khandelwal, Advocate राजˢ की ओर से/ Revenue by : Shri Vivek Vardhan, Addl. CIT, Sr. DR सुनवाई की तारीख/Date of Hearing : 23/04/2025 उदघोषणा की तारीख/Date of Pronouncement : 24/04/2025 आदेश/Order PER LALIET KUMAR, J.M:ORDER This appeal has been filed by the assessee against the order dated 22.12.2023 passed by the Ld. CIT(A) / NFAC, Delhi, dt. 22/12/2023 pertaining to Assessment Year 2011-12. 2. At the outset the Registry has pointed out that the appeal of the assessee is barred by limitation by 64 days. 3. After considering the condonation application filed by the assessee, we find that sufficient cause has been shown for the delay, which is hereby condoned. 4. Ld. DR had no objection if the delay is condoned. 5. Accordingly, the appeal is admitted for adjudication. 2 6. The Ld. CIT(A) dismissed the appeal filed by the assessee primarily on two grounds: o That the assessee failed to pay the advance tax equivalent as required under section 249(4)(b) of the Act since no return of income was filed. o That the appeal was filed beyond the statutory time limit of 30 days under section 249(2)(b), and no condonation application was found on record. 7. During the course of hearing, the assessee brought to our attention that the deficiency letters dated 08.12.2023 and 15.12.2023, which were the basis for holding the appeal inadmissible, were not served upon the assessee at the email address mentioned in Form 35. It is submitted that the email communication was wrongly addressed, and as a result, the assessee was deprived of the opportunity to cure the deficiencies pointed out by the CIT(A). The Ld. AR had submitted that on account of the above said reasons, the assessee failed to participate in the appellate proceedings before the Ld. CIT(A), and it was prayed that the matter may kindly be set aside and remand back by giving one more opportunity to the assessee to plead his case before the Ld. CIT(A). 8. Per contra, the Ld. DR had submitted that the assessee should be vigilant in participating the appellate proceedings and should login into ITBP portal where all the notice and information regarding appeals are readily available. 9. We have heard the rival contention and perused the material available on the record. On perusal of the Form 35 and the assessment records, we find force in the submissions of the assessee. The appellant had explicitly stated a particular email address in Column 7 of Form 35, which, as per the procedure laid down under the e- assessment and e-appeal schemes, ought to have been treated as the registered address for communication. Any communication sent to an incorrect or alternative email address amounts to improper service and constitutes a procedural lapse and do not approve it. 9.1. In such circumstances, and in the interest of natural justice, we are of the considered view that the assessee was prevented by sufficient cause from responding to the deficiency notices and from seeking condonation of delay or exemption under 3 the proviso to section 249(4). The failure to address communications to the correct address, as mandated under the faceless scheme, vitiates the foundation of the ex parte dismissal order. 10. We therefore deem it fit to set aside the impugned order dated 22.12.2023 and restore the matter back to the file of the Ld. CIT(A) (NFAC), with a direction to re-admit the appeal, issue proper notices to the correct email address as mentioned in Form 35, afford an effective opportunity of hearing, and decide the matter afresh in accordance with law. 11. The assessee is also directed to respond to any further notices promptly and to submit a condonation petition, if required, along with any supporting material as per law. On account of assessee’s continuous non-compliance before the lower authorities, we deem it appropriate to impose a notional cost of Rs. 2,000/- (Rupees Five Thousand only) on the assessee as a condition to remand back the matter to CIT(A) on depositing the cost of Rs. 2,000/- the Ld. CIT(A) shall decide the issue in accordance with law. The said amount shall be deposited with the PM CARES Relief Fund within a period of two months from the date of receipt of this order. 12. In the result, the appeal is allowed for statistical purposes. Order pronounced in the open Court on 24/04/2025 Sd/- Sd/- मनोज क ुमार अŤवाल लिलत क ुमार (MANOJ KUMAR AGGARWAL) (LALIET KUMAR) लेखा सद˟/ ACCOUNTANT MEMBER Ɋाियक सद˟ /JUDICIAL MEMBER AG आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to : 1. अपीलाथŎ/ The Appellant 2. ŮȑथŎ/ The Respondent 3. आयकर आयुƅ/ CIT 4. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 5. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "