ITAT Accepts Condonation of Delay as Income Tax Communication Received on Wrong Email

The Income Tax Appellate Tribunal (ITAT), Delhi, condoned a 159-day delay in filing the appeal due to the unawareness of the show cause notice and the order.

The assessee, East and Apartments CGHS Limited, a cooperative housing society with 1,300 members, failed to file its income tax return (ITR) due to its Chartered Accountant’s negligence, due to which the Income Tax Officer issued a notice under section 148 of the Income Tax Act. However, the said notice was sent to the wrong email, which was neither the society’s email ID nor its Chartered Accountant. The subsequent notice under section 142(1) and the show cause notice were also sent to the wrong email ID, where the NFAC proposed to add Rs 2,44,35,082 to the income of the assessee.

As these communications were sent to the wrong email, the assessee did not get any opportunity to know about the final order, and the society came to know about the same when the Income Tax Portal was locked at the time of audit and preparation of ITR for A.Y. 2023-24.

The CIT(A)/NFAC dismissed the society’s appeal, refusing the condonation of delay, saying that the assessee did not show enough cause for condoning the delay and the assessee has failed to e-verify the ITR. Therefore, the assessee approached the Income Tax Appellate Tribunal (ITAT), requesting to condone the delay of 159 days in filing the appeal.

The ITAT analysed the assessment order and noted that the petitioner was not given an effective opportunity for a hearing, and the assessee had submitted enough cause for the condonation of the delay. Therefore, the court condoned the delay and directed the CIT(A) to remand the matter to the AO for deciding it after giving an opportunity of hearing to the assessee. The assessee was also directed to present its case within 60 days.