CHANDRA SHEKAR REDDY LATTUPALLI, Ranga Reddy District V. ITO Ward-9(4), Hyderabad

ITA 335/Hyd/2024

• Counselvise Citation: [2024] 100 COUNSELVISE.COM (IT) 2629 (ITAT-HYDERABAD)
• Duration Of Justice: 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-04-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 28-04-2024
• Assessment Year: 2017-2018
• Appeal Filed On: 02-04-2024
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASHISH KUMAR SHUKLA
• Keywords: Set aside
• Section: 144; 250

Judgement Text

आयकर अपीलीय अधिकरण, हैदराबाद पीठ में IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES “SMC”, HYDERABAD BEFORE SHRI K. NARASIMHA CHARY, JUDICIAL MEMBER आ.अपी.सं / ITA No. 335/Hyd/2024 (निर्धारण वर्ा / Assessment Year: 2017-18) Chandra Shekar Reddy Lattupalli, Manchal Mandal, Ranga Reddy Dist., [PAN No. ADCPL3436A] Vs. Income Tax Officer, Ward-9(4), Hyderabad अपीलधर्थी / Appellant प्रत्‍यर्थी / Respondent निर्धाररती द्वधरध/Assessee by: Shri Mohd. Afzal, AR रधजस्‍व द्वधरध/Revenue by: Shri Ashish Kumar Shukla, DR सुिवधई की तधरीख/Date of hearing: 29/04/2024 घोर्णध की तधरीख/Pronouncement on: 29/04/2024 आदेश / ORDER Aggrieved by the order dated 15/09/2023 passed by the learned Commissioner of Income Tax (Appeals)- National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), in the case of Chandra Shekar Reddy Lattupalli, (“the assessee”) for the assessment year 2017-18, assessee preferred this appeal. 2. At the outset, it was brought to the notice of Bench that the assessee preferred this appeal with a delay of 141 days. In this connection, he filed an affidavit, explaining the reason for delay in filing the appeal that on account of cardiac arrest, the assessee was hospitalized. After that doctors advised him to take strict rest at home from 02/09/2023 to ITA No. 335/Hyd/2024 Page 2 of 5 26/02/2024. After 26/02/2024, the assessee with the assistance of his CA, identified an advocate to file the appeal before the ITAT and stated that the order u/s. 250 of the Appellate Commissioner, dated 15/09/2023 was also received by e-mail on the same day. Hence, prayed that delay in filing the appeal is due to his health condition and also restrictions of movement on the advice of the Doctor. There is no reason as to why this explanation of the assessee cannot be accepted. Though learned DR opposed the condonation of delay, in the interest of justice, I am inclined to condone the delay and to give an opportunity to the assessee to present his case on merits so that the cause of justice would be advanced. The delay is, therefore, condoned and I shall now proceed to hear and dispose of the matter on merits. 3. It is the submission of the learned AR on behalf of the assessee that the assessment order was passed under section 144 of the Income Tax Act, 1961 (‘the Act’), so also the learned CIT(A) disposed of the appeal ex-parte, observing that various notices were issued to the assessee, but the assessee failed to comply with any of such notices, nor did the assessee make any written submissions. Learned also AR submitted that the assessee opted not to serve the notices by e-mail, but the Revenue authorities sent the notices only by e-mails, which the assessee could not verify because being a vendor he moves from place to place. 4. Learned AR further submitted that even otherwise also the learned CIT(A) could have referred to the facts and dispose of the matter on merits, so as to render effective assistance to the higher appellate fora. Learned AR submits that in the interest of justice, an opportunity may be granted ITA No. 335/Hyd/2024 Page 3 of 5 to the assessee to effectively prosecute the appeal, by restoring the appeal to the file of the learned Assessing Officer. 5. Though the learned DR vehemently opposed the request of the assessee, the fact remains that the assessment order was passed under section 144 of the Act and there is no contradiction of the fact that assessee prayed not to serve the notices by e-mail, and also that the learned CIT(A) did not refer to the facts nor did he dispose of the appeal on merits. In the impugned order, learned CIT(A) observed that because of the absence of the assessee, he was left with no option except to confirm the order of the learned Assessing Officer, and on this premise alone, learned CIT(A) confirmed the assessment order and dismissed the appeal. 6. Requirement of law under section 250 (6) of the Act is that the order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. Even in the absence of the assessee, it is always open for the learned CIT(A) to deal with the matter on merits instead of dismissing the same. 7. Having regard to the facts and circumstances of the case, I am of the considered opinion that the impugned order does not comply with the requirement of Section 250(6) of the Act and cannot be sustained. If the request of the learned AR is granted affording an opportunity to the assessee to prosecute his case before the learned Assessing Officer by submitting the evidence, the highest that would happen is that a cause ITA No. 335/Hyd/2024 Page 4 of 5 could be decided on merits. When the technicalities are pitted against the delivery of substantial justice, the former must give way to the latter. 8. When the question as to, to whom the matter has to be remanded has arisen, both the counsel submitted that since the assessee could not prosecute the case before the learned Assessing Officer, it would be convenient if the matter is restored to the file of the learned Assessing Officer facilitating the verification of facts, if any, arising on the plea of the assessee. I too find it just and convenient to do so. With this view of the matter, I set aside the impugned order and restore the issue to the file of the learned Assessing Officer to pass an order in accordance with law. Assessee undertakes to be diligent and submitted that any notice sent to the e-mail ID of [e-mail] would be legal compliance with proper issuance of notice. Recording the same, I direct the assessee to co- operate with the learned Assessing Officer in getting the matter disposed of on merits, without seeking any adjournments and the learned Assessing Officer to take a fresh look at the matter, after affording a reasonable opportunity to the assessee of being heard. I order accordingly. 9. In the result, appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on this the 29 th day of April, 2024. Sd/- (K. NARASIMHA CHARY) JUDICIAL MEMBER Hyderabad, Dated: 29/04/2024 TNMM ITA No. 335/Hyd/2024 Page 5 of 5 Copy forwarded to: 1. Chandra Shekar Reddy Lattupalli, H.No. 1-27, Japal Village, Near Ibrahimpatnam, Manchal Mandal, Ranga Reddy Dist., 2. The Income Tax Officer, Ward-9(4), Hyderabad. 3. Pr.CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. GUARD FILE TRUE COPY ASSISTANT REGISTRAR ITAT, HYDERABAD