Ex-Parte Assessment: ITAT Condones 186-Day Delay, Remands Case for Reassessment

Umang Webtech Private Limited Vs ITO (ITAT Kolkata)

In the case of Umang Webtech Private Limited vs. ITO, the Income Tax Appellate Tribunal (ITAT) Kolkata addressed an appeal concerning the assessment year 2011-12. The appeal arose from an ex-parte assessment under Section 144 read with Section 147 of the Income Tax Act, 1961, conducted by the Assessing Officer (AO). The assessee filed the appeal with a delay of 186 days, attributing it to administrative lapses and the need to find a new consultant. The ITAT, acknowledging the genuine reasons and absence of malintent, condoned the delay in the interest of justice.

The ITAT noted that the assessment order and subsequent appellate proceedings were conducted without adequate representation from the assessee, resulting in an ex-parte decision. Observing the need for a fair opportunity, the Tribunal remanded the case to the AO for a fresh examination. It directed the assessee to provide necessary supporting documents and instructed the AO to re-evaluate the case after providing due notice to the assessee. The appeal was allowed for statistical purposes, ensuring procedural fairness and comprehensive review of the case.

FULL TEXT OF THE ORDER OF ITAT KOLKATA

The captioned appeal filed by the assessee, pertaining to assessment year 2011-12 is directed against the order passed by the National Faceless Appeal Centre, Delhi (hereinafter referred to as the ‘ld. CIT(A)’) dated 10.10.2023 passed u/s 250 of the Income Tax Act, 1961 (‘Act’), which is arising out of the assessment order u/s 144 read with section 147 of the Income-tax Act, 1961 (the Act) dated 20t^h November, 2018,

2. At the outset, the ld. Authorized Representative for the assessee submitted that there is delay of 186 days in filing the appeal before this Tribunal. The reasons for delay as explained by ld. Authorized Representative is that no proper compliance was done by previous consultant and it took time for search of new consultant. Due to this, there was an unavoidable delay of 186 days in filing the appeal. The ld. Authorized Representative requested to condone the delay emphasizing that the delay is due to genuine and reasonable cause beyond the control of the assessee and no mala fide intention was involved for delay in filing the appeal. The ld. Authorized Representative prayed that the delay being condoned in the interest of justice, so the assessee’s case can be heard on merits.

3. We after considering the submissions made by the ld. Authorized Representative and facts placed before us, we are of the view that the delay of 186 days in filing the appeal was due to reasonable cause as explained by the assessee. The delay was due to administrative reasons and there was no deliberate attempt by the assessee to delay in filing. In the interest of justice and fair play, we hereby condone the delay in fling the appeal. The appeal will now be heard on merits.

4. Before us, the ld. Authorized Representative stated that at the time of framing of the assessment order, the order was passed u/s 144 of the Income-tax Act, 1961 (the Act) against the assessee, since the assessee did not represent its case properly, ex-parte order was passed against the assessee.

5. Even before ld. CIT (A), the assessee could not properly represent the case, therefore, assessee prayed before the Bench that one opportunity may be given to the assessee in order to substantiate its claim by submitting certain documents in order to establish its case.

6. As the prayer made by the ld. Counsel for the assessee, the ld. DR did not object the same.

7. We after hearing the submissions of both the parties and perusing the materials available for record, we find that in the instant case, the assessment order was farmed ex-parte 144 of the Act, and assessee could not represent its case properly before the ld. AO. Therefore, in the interest of justice and fair play to both the parties, it is necessary to remand back the whole issue to the file of the ld. AO with a direction to re-examine the issue afresh and also directed the assessee to file necessary supporting documents in order to substantiate its claim without any fail. The ld. AO is directed on doing so, appropriate notice should be given to the assessee before passing any order. In terms of the above, the appeal of the assessee is allowed for statistical purpose.

8. In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the Court on 4^th November, 2024, at Kolkata.