Non-Service of Income Tax Assessment Order: ITAT Condones Delay in Filing Appeal [Read Order]

The Surat Bench of the Income Tax Appellate Tribunal (ITAT) has set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)], condoning the delay in filing an appeal by the assessee due to non-service of the assessment order.

Shri Harendrsinh Anupsinh Mahida (assessee) is an individual who filed an appeal against the assessment order passed for the Assessment Year (AY) 2011-12. The Assessing Officer (AO) made an addition of Rs. 83,61,900. The AO treated the entire sale consideration from agricultural land as taxable income under long-term capital gains.

The assessee contended that he was unaware of the assessment order until his bank account was attached for recovery of demand. The assessee received a copy of the order and promptly immediately filed an appeal before CIT(A).

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However, CIT(A) dismissed the appeal without condoning the delay, despite the fact that the appeal was filed within 30 days from the date of receiving the order. The CIT(A) failed to issue a show cause notice nor any consideration on submission by the assessee.

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Aggrieved by the order of the CIT(A), the assessee filed an appeal before ITAT. The counsel for the assessee submitted that in the interest of justice, the matter be restored to the AO to avoid a long-drawn process.

On the other hand, the counsel for the revenue supported the orders of lower authorities. The counsel also submitted that AO had given several notices that were not complied with by the assessee.

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The two-member bench, comprising Shri Pawan Singh (Judicial Member) and Shri Bijayananda Pruseth (Accountant Member), observed that the CIT(A) failed to verify whether the assessment order was served on the assessee in due time. The tribunal also observed that no show-cause notice was issued before dismissing the appeal.

The tribunal observed that the delay in filing the appeal was neither deliberate nor intentional, as the assessee had no knowledge of the assessment order before his bank account was attached.

Therefore, the tribunal held that there was no unreasonable delay and condoned the same. The tribunal set aside the CIT(A)'s order and restored the matter to the Assessing Officer for fresh adjudication. The tribunal directed the AO to provide the assessee with a fair opportunity to present his case with necessary evidence.

Thereby the appeal of the assessee was allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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