ITAT Condones 1486 Days Delay in Filing Appeal Holding Assessee Was Denied Opportunity Due to Non-Service of Assessment Order

The Income Tax Appellate Tribunal (ITAT) Delhi held that denial of opportunity without examining the reasons for delay violates principles of natural justice. The matter was restored to the CIT(A) for adjudication on merits.

The assessee filed two appeals before the ITAT against separate orders passed by the CIT(A), NFAC, relating to the assessment year 2018-19. One appeal was against the quantum assessment order, while the other challenged penalty proceedings initiated under Section 270A of the Income Tax Act, 1961. The assessee’s appeals before the CIT(A) were delayed by 1486 days in the quantum matter and 1181 days in the penalty appeal. The CIT(A) dismissed the appeals under Section 249(3) of the Income Tax Act by refusing to condone the delay without examining the merits of the case.

The assessee submitted that she never received statutory notices or the assessment order. She stated that the email ID registered on the income tax portal belongs to her Chartered Accountant and she was not informed about the proceedings. She became aware of the demand only after obtaining a copy of the order on 20 May 2025, after which she filed the appeal within 30 days.

The Tribunal observed that the assessee had properly explained the reasons for the delay and had filed an affidavit before the Tribunal explaining the circumstances that caused the delay. The assessee claimed that no assessment notices or orders were served upon her and that she immediately acted only after she became aware of the demand.

The Tribunal held that the CIT(A) had violated the principles of natural justice by dismissing the appeal without issuing any notice to seek a proper condonation application from the assessee. The Tribunal further observed that the change of procedure from the physical assessment system to the faceless assessment system has resulted in difficulties and technical issues, requiring a liberal approach while considering condonation of delay.

Accordingly, the ITAT condoned the delay of 1486 days in the quantum appeal and 1181 days in the penalty appeal. The orders passed by the CIT(A) were set aside, and the matters were remanded  for fresh adjudication on merits.