Income Tax Notice Missed due to Inadvertent Oversight of CA: ITAT Condones Delay in Filing Appeal:

The assessee, Redstone Textile Pvt. Ltd., was subjected to assessment proceedings under Section 153C r.w.s. 153A of the Income Tax Act following a Search and Seizure operation on the Deesan Group dated 17.01.2018. Based on documents found during the search at Deesan Texfab Pvt. Ltd., a notice under Section 153C was issued to the assessee on 31.03.2021. The assessment orders were passed u/s 153C, dated 10.05.2021. Appeals were to be filed before CIT(A) by 12.11.2023, but were filed on 04.02.2025, resulting in a delay of 450 days. The delay occurred due to an alleged lack of communication and inadvertence by the earlier tax consultant. The CIT(A) passed ex parte orders, dismissing the assessee’s appeals. As per the Taxpayer, the delay was inadvertent and unintentional, caused by poor communication and lack of notice awareness due to outdated or unused email IDs (as provided in Form 35). Reason for Delay The appointed consultant, Y.K. Chaturvedi & Co., failed to notify or follow up on notices from the CIT(A). A new consultant, CBV & Associates LLP, identified the orders during a portal review and promptly filed the appeals. Filed affidavits from the previous CA and the Director substantiating the above facts. Tribunal Order The Tribunal found sufficient cause for condonation, and delay was allowed.