Jignesh Narendrabhai Mandaliya Vs ITO (ITAT Rajkot)
The appeal before the Income Tax Appellate Tribunal, Rajkot related to Assessment Year 2019–20 and challenged an ex parte appellate order passed by the National Faceless Appeal Centre under section 250 of the Income Tax Act, 1961, which upheld an addition of ₹7,50,000 made in reassessment proceedings under sections 147 read with 144B. The assessee’s appeal before the Tribunal was delayed by 104 days. The assessee sought condonation, explaining that notices and the appellate order were served on the email of a previous tax consultant, who failed to inform the assessee, resulting in lack of awareness and delayed filing. The Revenue opposed condonation, contending that sufficient cause was not shown.
After hearing both sides, the Tribunal held that the delay occurred due to the mistake of the previous tax consultant and that the assessee should not be penalized for this lapse. Relying on the principle that substantial justice should prevail over technicalities, the Tribunal condoned the delay and admitted the appeal.
On merits, the assessee contended that the order of the first appellate authority was ex parte and vitiated due to violation of principles of natural justice, as no effective opportunity of hearing was granted. The assessee sought another opportunity to contest the matter. The Revenue argued that the assessee had been negligent before the lower authorities and should not be granted a second opportunity.
