Tribunal Condones Appeal Delay, Cites Pandemic; Remands Case for Reevaluation Due to Lack of Fair Hearing Procedures.

The Tribunal condoned a 56-day delay in filing the appeal due to the pandemic, recognizing a government extension. The Ld. PCIT's notice under section 263 was challenged, as it was issued without proper opportunity for the assessee to be heard, violating natural justice principles. The Tribunal set aside the order, remanding the case to the Ld. PCIT for reevaluation, ensuring the assessee's right to present evidence. The appeal was allowed for statistical purposes, underscoring the necessity of fair hearing procedures. Decision pronounced on 25-08-2021.

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Issues:
Delay in filing the appeal due to pandemic situation and lockdown. Validity of notice issued by Ld. PCIT u/s. 263 of the Act. Adherence to principles of natural justice in passing the impugned order.

Analysis:
The appeal was filed with a delay of 56 days due to the pandemic situation and lockdown, which hindered the preparation and filing process. The assessee relied on a government-issued Notification/Ordinance granting an extension for filing appeals affected by the pandemic, which was not objected by the ld. DR. Considering the practical difficulty faced by the assessee and the government's extension, the delay was condoned for the ends of justice.

The Ld. PCIT issued a notice u/s. 263 of the Act, alleging failure by the Ld. AO to assess the income of the assessee properly. The Ld. PCIT found discrepancies in the assessment process and set aside the issue to the AO for reassessment based on observations made in the impugned order. During the appeal hearing, it was revealed that the assessee did not receive the notices issued by the Revenue, and there were delays attributed to the illness of the partners of the assessee company. The Ld. PCIT passed the impugned order without affording proper opportunity of being heard to the assessee, violating the principles of natural justice. Consequently, the Tribunal set aside the issue to the Ld. PCIT for proper adjudication on merits, ensuring the assessee's right to be heard and submit evidence.

In conclusion, the Tribunal allowed the appeal of the assessee for statistical purposes, emphasizing the importance of adhering to principles of natural justice in legal proceedings. The decision was pronounced in the open court on 25-08-2021.

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