SAMPATHU GOWRILAKSMI,PONDICHERRY V. THE INCOME TAX OFFICER, WARD-1, PUDUCHERRY

ITA 1580/CHNY/2025

AI Insights

The case involves an appeal by the legal heir of the late Sampathu Gowrilakshmi against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi. The appeal was initially delayed by 272 days due to the legal heir's unawareness of the income tax proceedings following the assessee's death. The Income Tax Appellate Tribunal (ITAT) in Chennai found sufficient cause for the delay and condoned it. The original assessment was completed ex-parte and on a best judgment basis under sections 144 and 147 of the Income Tax Act, 1961, due to non-compliance by the assessee to multiple notices. The Tribunal, considering the circumstances of the assessee's death and the legal heir's lack of awareness, decided to remit the matter back to the AO for a fresh assessment, ensuring the principles of natural justice were upheld.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 714295 (ITAT-CHENNAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2011-2012
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.V. ARUN PRASAD
• Assessee Lawyers: HITESH
• Keywords: Condonation of delay; Principle of natural justice
• Section: 147; 144

Judgement Text

"आयकर अपीलȣय अͬधकरण, ‘डी’ Ûयायपीठ, चेÛनई IN THE INCOME TAX APPELLATE TRIBUNAL ‘D’ BENCH, CHENNAI Įी जॉज[ जॉज[ क े, उपाÚय¢ एवं Įी एस.आर.रघुनाथा, लेखा सदèय क े सम¢ BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENTAND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 1580/CHNY/2025 िनधाᭅरण वषᭅ/Assessment Year: 2011-12 Late Sampathu Gowrilakshmi, Rep. by Legal Heir Shri S. Singaravelu, No.120 Gowri Silks, Nehru Street, Pondicherry – 605 001. PAN: AADPG 1998G Vs. The Income Tax Officer, Ward 1, Pondicherry. (अपीलाथᱮ/Appellant) (ᮧ᭜यथᱮ/Respondent) अपीलाथᱮ कᳱ ओर से/Appellant by : Shri Hitesh, Advocate for Shri D. Anand, Advocate ᮧ᭜यथᱮ कᳱ ओर से/Respondent by : Shri R.V. Arun Prasad, Addl.CIT सुनवाई कᳱ तारीख/Date of Hearing : 01.08.2025 घोषणा कᳱ तारीख/Date of Pronouncement : 05.08.2025 आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 07.06.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2011-12. Printed from counselvise.com ITA No.1580/Chny/2025 :- 2 -: 2. There is a delay of 272 days in filing the appeal. The appeal ought to have been filed before ITAT on or before 06.08.2024. However, the appeal was filed belatedly on 30.05.2025. The legal heir of the assessee has filed a petition for condonation of delay supported by affidavit stating there in the reasons for belated filing of this appeal. The reasons stated is that the assessee was handling all her income tax related work on her own and after her demise, it took time for the assessee's spouse to collect the details and to hand over to his authorized representative. Later the appeal papers were prepared and filed before the Tribunal on 30.05.2025 with delay. On perusal of the same, we find there is sufficient cause for delay in filing this appeal before the Tribunal. 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 order passed by the First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to four notices issued from the office of the First Appellate Authority. Further, we also notice that the assessment has been completed on best judgment assessment u/s.144 r.w.s. 147 of the Act. 4. The Ld.AR for the assessee submitted that the order passed by the FAA is ex-parte and the assessment has also been completed Printed from counselvise.com ITA No.1580/Chny/2025 :- 3 -: on best judgment basis u/s. 144 of the Act. The Ld.AR further submitted that the assessee was passed away during the assessment proceedings. The assessee's spouse who is the legal heir of assessee was unaware of the income-tax proceedings and did not check the income tax portal. Therefore, he was unaware of the hearing notices issued during the appellate proceedings. Hence, 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. 5. The Ld. DR submitted that adequate opportunities were provided from the offices of the AO and the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed. 6. We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA was ex-parte, since the assessee did not respond to various notices issued. The Ld.AR submitted that the assessee was passed away during the assessment proceedings.The assessee's spouse, who is the legal heir was unaware of the income-tax proceedings and did not take note of the notices issued by the FAA in the income tax portal. In light of the submissions of Ld.AR and in the interest of Printed from counselvise.com ITA No.1580/Chny/2025 :- 4 -: justice and fair play, 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 5th August, 2025 at Chennai. Sd/- Sd/- (एस.आर. रघुनाथा) (S.R. RAGHUNATHA) लेखा सदèय/ACCOUNTANT MEMBER (जॉज[ जॉज[ क े) (GEORGE GEORGE K) उपाÚय¢ /VICE PRESIDENT चे᳖ई/Chennai, ᳰदनांक/Dated, the 5th August, 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. Printed from counselvise.com "