Assessee's Appeal Allowed by Tribunal with Delay Condoned for Reasonable Cause

The appeal by the Assessee was allowed by the Tribunal, with a delay in filing the appeal being condoned due to reasonable cause. The Tribunal set aside several grounds related to issues such as service of notice under sections 148 and 143(2) of the Income Tax Act, opportunity to present additional evidence, and the reopening of assessment for further examination by the Commissioner of Income Tax (Appeals) to ensure proper adjudication and provide reasonable opportunities to the Assessee.

---

---

Issues Involved:
1. Delay in filing the appeal.
2. Service of notice under section 148 of the Income Tax Act.
3. Issuance of notice under section 143(2) of the Income Tax Act.
4. Opportunity to present additional evidence during remand proceedings.
5. Reopening of assessment under section 148 and the approval under section 151 of the Income Tax Act.

Detailed Analysis:

1. Delay in Filing the Appeal:
The appeal was filed by the Assessee against the order of the Learned Commissioner of Income Tax (Appeals)-43, New Delhi, dated 13/07/2021, pertaining to the assessment year 2011-12. The Assessee had expired on 04/09/2019, and the legal heir, Mrs. Poonam Kalia, was brought on record. There was a delay of 36 days in filing the appeal. After hearing both parties and considering the material available, the Tribunal found reasonable cause for the delay and condoned it, admitting the appeal for adjudication.

2. Service of Notice under Section 148 of the Income Tax Act:
The Assessee contended that the notice under section 148 was never received as the Assessee had no premises in India after selling the house on 22/06/2010. The overseas address was available in Form No. 15CA uploaded on the Income Tax Department site, but no valid service of notice occurred. The Revenue argued that notices were issued at the last known Indian and USA addresses, but there was no compliance. The Tribunal noted that the onus is on the Revenue to demonstrate proper service of notice. Since the CIT(A) did not adjudicate this issue, the Tribunal set aside this ground of appeal to the CIT(A) for a decision as per law.

3. Issuance of Notice under Section 143(2) of the Income Tax Act:
The Assessee claimed that the return of income was filed on 16/05/2018 in response to the notice under section 148, but no notice under section 143(2) was issued, making the proceedings invalid. The Revenue countered that the return was not filed within the stipulated period, and thus, the AO was not required to issue a notice under section 143(2). The Tribunal found that it was unclear whether the return was duly verified after e-filing. The Tribunal set aside this ground to the CIT(A) to determine if the return was properly filed and verified, and if so, to consider the necessity and legality of issuing a notice under section 143(2).

4. Opportunity to Present Additional Evidence during Remand Proceedings:
The Assessee argued that no notice was served to appear before the AO during remand proceedings, and the remand report was not confronted to the Assessee. The Revenue stated that the AO sought additional documentation, which the Assessee failed to provide. The Tribunal noted that the additional evidence and documentation were critical for determining the issue and set aside the matter to the CIT(A) to consider the additional evidence and decide as per law after providing a reasonable opportunity to the Assessee.

5. Reopening of Assessment under Section 148 and Approval under Section 151 of the Income Tax Act:
The Assessee challenged the reopening of assessment, arguing that the reasons for reopening were based on incorrect information regarding foreign remittance and that the approval under section 151 was mechanical. The Revenue maintained that the AO had credible material and followed due process. The Tribunal observed that the CIT(A) did not record findings on this issue. Therefore, the Tribunal set aside this ground to the CIT(A) to decide as per law after providing a reasonable opportunity to the Assessee.

Conclusion:
The appeal of the Assessee was allowed for statistical purposes, with multiple grounds set aside to the CIT(A) for re-examination and decision as per law. The Tribunal emphasized the need for proper adjudication and providing reasonable opportunities to the Assessee in all matters.

---