Sreemath Khadri Lakhsmi Vs ITO (ITAT Hyderabad)
Delay Due to Death of Chartered Accountant Condoned: ITAT Hyderabad Restores Ex-Parte Assessments
The Hyderabad Bench of the ITAT allowed the assessee-Devasthanam’s appeals for AYs 2016-17, 2022-23 and 2023-24, holding that the CIT(A) erred in dismissing the appeals in limine for delay without adjudicating on merits. The Tribunal condoned delays of 10 months 27 days (AYs 2016-17 & 2022-23) and 1 month 1 day (AY 2023-24), accepting the assessee’s explanation that statutory notices and communications continued to be sent to the email ID of the erstwhile Chartered Accountant who had passed away, resulting in lack of knowledge of proceedings—constituting sufficient and reasonable cause.
Relying on the Supreme Court’s liberal approach in Collector, Land Acquisition v. MST Katiji (167 ITR 471), the ITAT held that technicalities should not defeat substantial justice. Noting that the assessments were also ex-parte, the Tribunal set aside the CIT(A)’s orders and remanded the matters to the Assessing Officer for de-novo adjudication, with a direction to grant a proper opportunity of hearing.
Accordingly, the appeals were allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT HYDERABAD
These three appeals by the Assessee are directed against the Orders all dated 22.08.2025 of the learned CIT(A)-National Faceless Appeal Centre [in short “NFAC], Delhi, for the assessment years 2016-2017, 2022-2023 and 2023-2024 respectively, in dismissing the appeals of the assessee in limine without deciding the appeal on merits. Since common issues involved in these appeals, these appeals were heard together and are being disposed of by this single consolidated order for the sake of convenience and brevity. First, we take-up the appeal ITA.No.1477/Hyd./2025 for the assessment year 2016-2017 as “lead” appeal.
