Appeal allowed due to Covid delay & address change; emphasizes right to hearing and justice

The ITAT allowed the appeal, citing the justified delay in filing due to the Covid Pandemic situation and the change of address affecting receipt of notices. The case was restored to the Assessing Officer for further proceedings, emphasizing the appellant's right to a reasonable opportunity of hearing and the importance of justice and equity in addressing the issues raised.

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Issues:
1. Timeliness of filing the appeal before ITAT
2. Justification for delay in filing the appeal
3. Change of address affecting receipt of notices
4. Denial of opportunity of hearing by CIT(A)
5. Validity of assessment order and jurisdiction
6. Estimation of income at 20% of turnover
7. Denial of interest charges under sections 234A, 234B, and 234C

Issue 1: Timeliness of filing the appeal before ITAT
The appeal was filed before the Tribunal 17 days after the due date. However, the appellant argued that due to the Covid Pandemic situation, the Hon'ble Apex Court had extended the period of limitation. The Hon'ble Supreme Court's judgment dated 23.03.2020 allowed an extension of the limitation period from 15.03.2020 until further orders. Consequently, the delay in filing the appeal was considered justified.

Issue 2: Justification for delay in filing the appeal
The appellant contended that the change of address led to non-receipt of notices from the Assessing Officer and CIT(A). An Affidavit was filed by the appellant affirming the change of address and the inadvertent failure to update the authorities. The appellant requested an opportunity to present necessary material before the Assessing Officer to ensure justice and equity.

Issue 3: Change of address affecting receipt of notices
The change of address by the appellant was claimed to be the reason for not receiving notices related to the assessment proceedings. The Affidavit detailed the circumstances leading to non-receipt of notices and the subsequent actions taken by the appellant upon becoming aware of the assessment orders.

Issue 4: Denial of opportunity of hearing by CIT(A)
The CIT(A) dismissed the appeal in limine due to the non-appearance of the appellant, without addressing the merits of the case. The appellant argued that the dismissal without providing an opportunity to be heard violated the principles of natural justice.

Issue 5: Validity of assessment order and jurisdiction
The assessment for the appellant, an individual, was completed under section 143(3) r.w.s. 144 of the Income Tax Act, estimating the total income at Rs. 31,15,500. The appellant raised concerns regarding the jurisdiction of the authorities and the validity of the assessment order due to non-service of notices.

Issue 6: Estimation of income at 20% of turnover
The authorities proposed to estimate the income at 20% of the turnover due to non-compliance by the appellant. The appellant argued that the estimation was excessive and should be substantially reduced, claiming that the estimated income should not exceed 8% of the gross receipts.

Issue 7: Denial of interest charges under sections 234A, 234B, and 234C
The appellant denied liability to be charged interest under sections 234A, 234B, and 234C of the Income Tax Act. The issue of interest charges was raised as part of the grounds of appeal, seeking relief from the imposition of interest.

In conclusion, the ITAT allowed the appeal for statistical purposes, restoring the case to the Assessing Officer for further proceedings with the direction to grant the appellant a reasonable opportunity of hearing. The judgment emphasized the importance of justice and equity in addressing the issues raised by the appellant.

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