GANESH PRASHAD KARNA,NOIDA V. DCIT, CIRCLE- 5(1)(1), NOIDA

ITA 1359/DEL/2025

AI Insights

The case involves an appeal by Ganesh Prasad Karna against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, which dismissed the appeal in limine due to alleged delay in filing. The assessee contended that there was no delay as the appeal was filed within the limitation period from the date of knowledge of the assessment order. The department argued that notices were sent to the assessee, making him aware of the proceedings. The tribunal found that the assessee was not given a reasonable opportunity to explain the delay and emphasized the principle of natural justice, restoring the case to the AO for a fresh assessment.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360952 (ITAT-DELHI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2015-2016
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANOJ KUMAR
• Assessee Lawyers: S M.P RASTOGI; PN SHASTRI
• Keywords: Period of limitation; Principle of natural justice; Recovery proceedings
• Section: 147; 148; 142(1)

Judgement Text

"आयकर अपीलीय अिधकरण िदʟी पीठ “एस एम सी”, िदʟी ŵी िवकास अव̾थी, Ɋाियक सद˟ IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “SMC”, DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER आअसं.1359/िदʟी/2025(िन.व. 2015-16) ITA No.1359/DEL/2025 (A.Y.2015-16) Ganesh Prasad Karna, A 301, Homes-121, Sector 121, Gautam Budh Nagar, Noida 201301, Uttar Pradesh PAN: ABCPK-2378-N ...... अपीलाथᱮ/Appellant बनाम Vs. Assessing Officer, National Faceless Assessment Centre, Circle 5(1)(1), Sector 24, Gautam Budh Nagar, Noida, Uttar Pradesh .... ᮧितवादी/Respondent अपीलाथŎ Ȫारा/ Appellant by : S/Shri M.P Rastogi & P N Shastri, Chartered Accountants ŮितवादीȪारा/Respondent by : Shri Manoj Kumar, Sr. DR सुनवाई कᳱ ितिथ/ Date of hearing : 22/05/2025 घोषणा कᳱ ितिथ/ Date of pronouncement : : 22/05/2025 आदेश/ORDER PER VIKAS AWASTHY, JM: This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 06.01.2025, for assessment year 2015-16. 2. The ld. Counsel for the assessee submits that the appeal of assessee was dismissed in limine by the CIT(A) on ground of delay in filing of appeal. He submitted that as per assessee there is no delay in filing of appeal. The assessment order dated 24.03.2022 was received by the assessee on 07.09.2022. The assessee filed appeal within the period of limitation from the date of knowledge of 2 ITA No.1359/Del/2025 (AY 2015-16) assessment order. The CIT(A) in ex-parte proceedings, without affording opportunity of making submissions to the assessee dismissed appeal on the ground of limitation. He further submitted that the assessee was unaware of assessment proceedings u/s. 147 of the Act. As no notice u/s. 148 of the Income Tax Act,1961(hereinafter referred to as ‘the Act’) or any subsequent notice was ever served on the assessee. It was only when recovery proceedings were initiated and a phone call was received from the office of Assessing Officer (AO), the assessee came know about the assessment order dated 24.03.2022 passed u/s. 147 r.w.s. 144 r.w.s. 144B of the Act. 3. Per contra, Shri Manoj Kumar, representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld. DR pointed that notice u/s. 142(1) of the Act was sent to the assessee by the Departmental Verification Unit (DVU) through speed post. Therefore, the assesse was aware of the assessment proceedings but failed to respond to the same. 4. Both sides heard, orders of the authorities below examined. The AO had purportedly issued notice u/s. 148 of the Act dated 30.03.2021 and was served through ITBA portal. However, it is not emanating from the assessment order, whether the said notice was ever served on the assessee. Further, the AO in assessment order has mentioned that notices u/s. 142(1) of the Act were issued to the assessee on 15.12.2021 and 18.01.2022 were served by DVU through speed post but there was no response from the assessee. The AO invoked the provisions of section 144 of the Act and passed the assessment order. Against the said assessment order, the assessee filed appeal before the CIT(A). The appeal was time barred by 149 days. The CIT(A) dismissed the appeal in limine on the ground of limitation. The ld. Counsel pointed that no notice was ever served on the assessee 3 ITA No.1359/Del/2025 (AY 2015-16) by the CIT(A) to explain the alleged delay in filing of appeal although according to the assessee there was no delay in filing of appeal. A perusal of impugned order shows that the appeal is dismissed in ex-parte proceedings without affording reasonable opportunity of making submissions to the assessee/appellant. It is gross violation of principles of natural justice. The assessee has explained the reason for alleged delay in filing of appeal, albeit as per assessee the appeal is within limitation as the appeal was filed within 60 days from the date of knowledge of order. I find merit in submissions of the assessee. Nevertheless, the Hon’ble Supreme Court of India has time and again held that acceptance of explanation should be the rule and refusal an exception, especially when no inaction or want of bonafide is imputed to the appellant. 5. Taking into consideration entire facts of the case, I restore this appeal back to the AO for denovo assessment. The AO shall issue notice to the assessee on email address mentioned in Form No. 36, i.e. “[e-mail]”. The AO before passing fresh assessment order shall grant reasonable opportunity of making submissions to the assessee, in accordance with law. 6. The assessee is directed to respond to the notice(s) issue by the AO, without fail. 7. In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on Thursday the 22nd day of May, 2025. Sd/- Sd/- (VIKAS AWASTHY) ᭠याियक सद᭭य/JUDICIAL MEMBER िदʟी/Delhi, ᳰदनांक/Dated 22.05.2025 4 ITA No.1359/Del/2025 (AY 2015-16) NV/- ᮧितिलिप अᮕेिषत/Copy of the Order forwarded to : 1. अपीलाथᱮ/The Appellant , 2. ᮧितवादी/ The Respondent. 3. The PCIT/CIT(A) 4. िवभागीय ᮧितिनिध, आय.अपी.अिध., िदʟी /DR, ITAT, िदʟी 5. गाडᭅ फाइल/Guard file. BY ORDER, //True Copy// (Dy./Asstt. Registrar) ITAT, DELHI "