The Ahmedabad bench of the Income Tax Appellate Tribunal ( ITAT ) remanded a matter for fresh adjudication concerning a delay in filing an appeal due to a change of address and non-receipt of an assessment order citing principles of natural justice. Dubey Ravi Arunkumar, the asssessee is a labor contractor filed his income tax return for the assessment year 2013-14.

The assessment for the year 2013-14 was scrutinized and finalized under Section 143(3) of the Income Tax Act, 1961. The assessing officer (AO) issued notices to the assessee but he did not respond to scrutiny notices. The assessing officer (AO) made an additional assessment of Rs. 4,17,632 due to non-compliance with notices. The assessing officer finalized the best judgment assessment under Section 144 of the Income Tax Act, 1961. Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here

The assessee argued that the delay of 409 days in filing an appeal before the Commissioner of Income Tax ( Appeals ) [CIT(A)] was primarily due to a change in address and non-receipt of the assessment order. The assessee’s counsel argued that the delay was only 135 days and sought condonation based on genuine reasons. The CIT(A) dismissed the appeal purely on technical grounds without addressing the merits. The assessee approached the ITAT requesting a remand to the AO for proper adjudication and verification of evidence that could not be presented earlier. The assessee’s counsel argued that the reason for the delay in filing the appeal was genuine and not negligence but the CIT(A) dismissed the appeal without considering the reason.

The single-member bench comprising Suchitra Kamble (Judicial Member) observed that the delay was genuine and condoned it. The tribunal observed that the assessee’s reasons for non-compliance were valid and that greater caution in adhering to tax laws was necessary. Comprehensive Guide of Law and Procedure for Filing of Income Tax Appeals, Click Here The tribunal remanded the matter back to the AO directing a fresh adjudication after considering the evidence presented by the assessee. The tribunal also ordered the assessee to contribute Rs. 2,000 to the Prime Minister’s Relief Fund within three weeks as a gesture of responsibility.