Rupa Abhay Vyas Vs ITO (ITAT Nagpur)
729 Days’ Delay Not Fatal – Tribunal Grants Final Opportunity to Assessee- Death of Counsel & Medical Issues Accepted as Reasonable Cause – Delay Condoned
ITAT Nagpur condoned a delay of 729 days in filing appeal & remanded the matter to CIT(A)/NFAC for fresh adjudication. Assessee explained that during Covid-19 pandemic, her counsel Shri Ramesh Pandharinath Chandekar, who was handling the case, became severely ill & passed away on 20.03.2021. Later, Assessee herself was diagnosed with varicose veins in 2023, causing difficulty in movement & inability to attend tax compliances. The impugned order was passed ex parte on 28.03.2023 & came to her knowledge only when Revenue pressed for recovery of demand, after which appeal was filed with delay. Tribunal found the reasons bona fide, genuine & unintentional, duly supported by affidavit, & accordingly condoned the delay.
On merits, AO had reopened assessment u/s 147 & vide order dated 29.10.2015 made addition of Rs. 17,02,441/- being 1/3rd share of long-term capital gain of Rs. 51,07,324/-. CIT(A) upheld the addition ex parte, citing non-compliance despite several notices. Tribunal noted that most notices were issued during Covid-19 period & the last notice dated 13.03.2023 was not complied with due to medical reasons & death of the earlier counsel. Considering these peculiar circumstances, Tribunal held that substantial justice warranted restoration of matter to CIT(A)/NFAC for fresh decision on merits, while granting one more opportunity to the Assessee.
