Reasonable cause for delayed appeal and ex parte dismissal led to remand for fresh adjudication after hearing.

A reasonable cause was accepted for the 93-day delay because the appellate order was not served by post or email and was noticed later on the department's e-portal, so the delay was condoned. The first appellate authority had dismissed the appeal ex parte for non-prosecution without examining the merits, while the assessment itself had proceeded ex parte under section 144. As proper verification and hearing were still required, the order was set aside and the matter was remanded to the Assessing Officer for fresh adjudication after giving the assessee an opportunity of being heard.

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Issues: (i) Whether the 93 days' delay in filing the appeal was liable to be condoned. (ii) Whether the ex parte dismissal of the appeal by the first appellate authority warranted setting aside and remand for fresh adjudication.

Issue (i): Whether the 93 days' delay in filing the appeal was liable to be condoned.

Analysis: The explanation for delay was that the impugned order was not served on the assessee either by post or by email and was noticed only later through the department's e-portal. The explanation was found to constitute a reasonable cause, and the delay was not treated as intentional or deliberate.

Conclusion: The delay of 93 days was condoned in favour of the assessee.

Issue (ii): Whether the ex parte dismissal of the appeal by the first appellate authority warranted setting aside and remand for fresh adjudication.

Analysis: The assessment had proceeded ex parte under section 144 of the Income-tax Act, 1961, and the first appellate authority also dismissed the appeal for non-prosecution without a merits-based adjudication. In these circumstances, and since the assessment required proper verification of the material and explanation of the assessee, the matter was considered fit for a fresh examination by the Assessing Officer after affording an opportunity of hearing.

Conclusion: The order of the first appellate authority was set aside and the matter was remanded to the Assessing Officer for fresh decision after opportunity of hearing, in favour of the assessee.

Final Conclusion: The appeal succeeded to the extent that the delay was condoned and the dispute was restored to the Assessing Officer for de novo consideration, so the assessee obtained a remand-based relief.

Ratio Decidendi: When an assessee shows a reasonable cause for non-service of the appellate order, delay in filing the appeal may be condoned; and where the first appellate dismissal is for non-prosecution without merits adjudication, a remand for fresh decision after hearing is appropriate.

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