243-Day Delay in Filing Appeal Condoned; ITAT Bangalore Restores Ex-Parte Income Tax Appeal for Fresh Hearing

The Income Tax Appellate Tribunal (ITAT) Bangalore Bench has given relief to taxpayer Shiv Kumar Reddy (Legal Representative of Mokshith Reddy Chenna Reddy) by remanding his tax appeal to the CIT(A) for a fresh decision.

The appeal was with respect to Assessment Year 2022-23. Before coming to the main issue, the Tribunal discussed the delay of 243 days in filing the appeal before ITAT. On going through the reasons submitted by the assessee, the Bench was of opinion that there was sufficient cause for the delay, and, therefore, condoned the delay and heard the appeal.

While examining the case, the Tribunal noted that the CIT(A) had passed the earlier order ex parte. The taxpayer was, however, represented before the ITAT and expressed his intention to contest the additions made by the AO.

The Tribunal observed that the CIT(A) had dismissed the appeal mainly due to non-compliance with notices and had not examined the issues raised by the taxpayer on their merits. According to the ITAT, Section 250(6) of the Income Tax Act requires the CIT(A) to pass a reasoned order dealing with the grounds of appeal on merits.

After considering all the facts, the ITAT set aside the order of the CIT(A) and sent the matter back to the appellate authority for de novo adjudication. The Tribunal directed the CIT(A) to provide a reasonable opportunity of hearing to both parties before passing any order.

At the same time, the Tribunal instructed the taxpayer to cooperate with the proceedings and appear on all future hearing dates without default.

As a result, the appeal was allowed for statistical purposes.