This article provides an in-depth analysis of the case involving Sumit Gupta, Bulandshahr, as the appellant, and the Income Tax Officer (ITO) Ward 3(2), Bulandshahr, as the respondent. The case pertains to the assessment year 2010-11 and is identified by ITA No. 1326/DEL/2020. The appeal was filed on 30th June 2020, with the final tribunal order being pronounced on 5th April 2022.
Sumit Gupta, represented by Shri Somil Agarwal, Advocate, filed an appeal against the order dated 28th February 2019 by the Commissioner of Income Tax (Appeals), Ghaziabad. The appeal was related to the income tax assessment for the year 2010-11. The primary contention in the appeal was against the decisions and assessments made by the CIT (Appeals), Ghaziabad, which were dismissed in limine due to a delay in filing.
The case was heard by Shri Amit Shukla, Judicial Member, at the Delhi Bench ‘SMC’ of the Income Tax Appellate Tribunal (ITAT), New Delhi, through video conferencing. The hearing was scheduled for 5th April 2022, where both parties presented their submissions.
At the outset, the counsel for the appellant submitted that the CIT (Appeals) had erred in law and on facts by dismissing the appeal in limine due to a delay of 2 months in filing. It was submitted that the assessment order was not served upon the appellant, as evidenced by a letter from the Department dated 13th July 2021, which stated that the assessment order sent through speed post was returned unserved. The appellant received the assessment order only when certified copies were obtained, leading to the delay in filing the appeal.
The tribunal reviewed the submissions and found that there was a bona fide reason for the delay in filing the appeal, as the assessment order was not served on time. The tribunal condoned the delay and remanded the matter back to the CIT (Appeals) for fresh consideration. The order stated:
“Since there was a bonafide reason for delay of 2 months as the assessment order was not served which is evident from the letter of the Department sent to the assessee. Accordingly, the delay in filing of the appeal before the CIT (Appeals) is condoned and the matter is remanded back to the file of the CIT (Appeals) to decide the issue on merits and the grounds on the issue which has been raised before me. The ld. CIT (Appeals) will provide an opportunity of hearing to the assessee. Accordingly, the appeal of the assessee is set aside to the file of the CIT (Appeals).”
The order was pronounced in the open court on 5th April 2022.
The appeal by Sumit Gupta against the ITO Ward 3(2), Bulandshahr, highlights the importance of timely service of assessment orders and the procedural rights of appellants in tax litigation. The tribunal’s decision to condone the delay and remand the matter for fresh consideration ensures that the appellant’s case will be heard on its merits, thereby upholding the principles of natural justice.
The case was initially filed because the Commissioner of Income Tax (Appeals), Ghaziabad, dismissed the appeal due to a delay in filing. The appellant argued that the assessment order was not served in a timely manner, which was confirmed by the Department’s records. The tribunal’s decision to condone the delay and remand the case back for fresh consideration underscores the importance of procedural fairness in tax assessments.
This decision demonstrates the tribunal’s commitment to ensuring that taxpayers are given a fair opportunity to present their cases and that procedural irregularities do not prejudice their right to appeal. It also highlights the need for tax authorities to ensure proper service of assessment orders to avoid unnecessary delays and disputes.
The remand of the case back to the CIT (Appeals) provides the appellant with an opportunity to have the substantive issues in their case heard and decided on their merits. This approach reinforces the importance of due process in the administration of tax laws and the resolution of tax disputes.
Appeal Filed by Sumit Gupta Against ITO Ward 3(2), Bulandshahr: ITA No. 1326/DEL/2020
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