LATE SADIQ ALI THROUGH LR JAFRI ,VILL.JAGATPUR PO MAJRA, V. ITO NAHAN, NAHAN

ITA 579/CHANDI/2024

AI Insights

The case involves three appeals by the legal heir of Late Sadiq Ali against the orders of the CIT(A)/NFAC, Delhi, for the assessment years 2012-13 to 2014-15. The appeals were consolidated due to common issues related to the validity and sustainability of additions made under section 147 read with section 144 of the Income Tax Act, 1961, concerning unexplained credit entries in various bank accounts. The Tribunal noted a procedural delay in filing the appeals, which was attributed to communication difficulties faced by the legal heir under the faceless mechanism of the proceedings. The Tribunal found the reasons for the delay to be bona fide and not deliberate, citing the principle that technicalities should not obstruct substantive justice. Consequently, the Tribunal admitted the appeals for adjudication on merits, criticizing the CIT(A) for dismissing the appeals ex parte without considering them on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 360926 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-05-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJIT KAUR; VIRTUAL MODE
• Keywords: Condonation of delay; Set aside; Opportunity of being heard; Unexplained cash credit
• Section: 147

Judgement Text

"आयकर अपीलीय अिधकरण,चǷीगढ़ Ɋायपीठ “बी” , चǷीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH “B”, CHANDIGARH HEARING THROUGH: HYBRID 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. 579 To 581/Chd/ 2024 िनधाŊरण वषŊ / Assessment Year : 2012-13 to 2014-15 Late Sadiq Ali Through LR Jafri, Vill. Jagarpur PO Majra, Paonta Sahib, Distt. Sirmour Himachal Pradesh-173021 बनाम The ITO Nahan ˕ायी लेखा सं./PAN NO: AXAPA9229Q अपीलाथŎ/Appellant ŮȑथŎ/Respondent िनधाŊįरती की ओर से/Assessee by : None (Adj. Application) राजˢ की ओर से/ Revenue by : Dr. Ranjit Kaur, Addl. CIT, Sr. DR (Virtual Mode) सुनवाई की तारीख/Date of Hearing : 22/05/2025 उदघोषणा की तारीख/Date of Pronouncement : 23/05/2025 आदेश/Order PER LALIET KUMAR, J.M: These three appeals by the assessee arise out of separate appellate orders passed by the Ld. CIT(A)/NFAC, Delhi, dated 26.12.2023, for the Assessment Years 2012–13, 2013–14, and 2014–15. As the issues are common and interconnected, these appeals were heard together and are disposed of by this consolidated order. For convenience, ITA No. 581/CHANDI/2024 for A.Y. 2014–15 is treated as the lead case. 2. At the outset, it is noted that there was a delay of more than 81 days in filing the appeal in ITA No. 579/Chd/2024 and 580/Chd/2024 before the Tribunal. The assessee has filed a condonation petition supported by an affidavit explaining that the delay occurred on account of lack of awareness and communication difficulties, as the assessee is represented through the 2 widow/legal heir of Late Sadiq Ali, and the proceedings were conducted under the faceless mechanism. 3. Considering the circumstances narrated in the petition, and taking into account that the impugned appellate orders were passed ex parte without adjudication on merits, we are satisfied that the reasons for the delay are bonafide and not deliberate or mala fide. It is a settled principle of law that technicalities should not come in the way of substantive justice. 4. Reliance is placed on the judgment of the Hon’ble Supreme Court in the case of Collector, Land Acquisition vs. Mst. Katiji [1987 AIR 1353], wherein the Hon’ble Court has held that a liberal view should be taken in matters of condonation of delay where substantial justice is pitted against technical considerations. 5. Accordingly, the delay is condoned, and the appeals are admitted for adjudication on merits. 6. The common issue in all these appeals relates to the validity and sustainability of additions made under section 147 r.w.s. 144 of the Income Tax Act, 1961, in the cases of Late Sadiq Ali, represented by his legal heir, for respective years. The additions primarily relate to unexplained credit entries in various bank accounts, which the AO brought to tax under section 115BBE in absence of compliance. 7. The assessee challenged the said reassessment orders before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeals summarily for non- compliance, without rendering any findings on the merits of the case, despite the fact that grounds challenging the jurisdiction as well as factual additions were duly raised. 8. It is a well-established law that the first appellate authority cannot dismiss the appeal ex parte without disposing of the grounds on merits. The 3 Hon'ble Supreme Court in CIT v. S. Chenniappa Mudaliar 74 ITR 41 has clearly held that dismissal of an appeal by the CIT(A) for default without going into the merits is not justified. 9. In view of the above, and in the interest of substantial justice, we are of the considered opinion that the matter requires reconsideration at the level of the Ld. CIT(A). We accordingly set aside the impugned orders passed by the Ld. CIT(A) for all three assessment years and remand the matter to his file for fresh adjudication after providing due opportunity of being heard to the assessee. 10. The assessee is directed to appear before the Ld. CIT(A) and actively cooperate in the proceedings. The Ld. CIT(A) shall adjudicate the matter in accordance with law after considering the submissions and evidence that may be filed. 11. In the result, all three appeals are allowed for statistical purposes. Order pronounced in the open Court on 23/05/2025 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. आयकर आयुƅ (अपील)/ The CIT(A) 5. िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, चǷीगढ़/ DR, ITAT, CHANDIGARH 6. गाडŊ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "