Tribunal grants appeal, remits for fresh decision due to reasonable cause, emphasizes fair hearing

The Tribunal allowed the appeal for statistical purposes, remitting the issue back to the ld. CIT(A) for a fresh decision on merits due to the reasonable cause presented by the assessee for the significant delay in filing the appeal. The Tribunal emphasized the need for a fair hearing and directed the ld. CIT(A) to reconsider the case, ensuring the assessee receives a reasonable opportunity for a fair hearing.

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Issues:
Delay in filing appeal before the ld. CIT(A) and subsequent dismissal of the appeal based on the delay.

Analysis:
The appeal was against the order of the ld. Commissioner of Income Tax (Appeals) for A.Y. 2010-11, emanating from the order of the ld. ADIT, CPC, Bangalore, passed under section 143(1) of the Income Tax Act, 1961. The assessee claimed deduction under section 80IB, which was rejected, leading to a demand of Rs.12,35,390. The delay in filing the appeal was 9 years, with the assessee submitting an affidavit explaining the delay due to non-receipt of intimation. The ld. CIT(A) dismissed the appeal citing the delay as the reason, despite the affidavit submitted by the assessee.

The ld. counsel for the assessee argued that the delay was unintentional and attributed to the non-receipt of intimation by the assessee. The counsel highlighted that the intimation might have been sent to an email address maintained by an accountant who had left the company without informing the management. The assessee sought condonation of delay and requested the appeal to be heard on merits. The ld. Sr. DR supported the ld. CIT(A)'s order.

Upon review, the Tribunal noted the significant delay but also considered the reasonable cause presented by the assessee. The Tribunal observed a lack of proof regarding alternative modes of service of intimation to the assessee. The assessee submitted an affidavit and relied on legal precedents, including cases where delays were condoned due to lack of knowledge about orders. The Tribunal found a sufficient cause for the delay and remitted the issue back to the ld. CIT(A) for a fresh decision on merits, emphasizing the need for a fair hearing for the assessee.

Conclusively, the Tribunal allowed the appeal for statistical purposes, directing the ld. CIT(A) to reconsider the case on merits, ensuring the assessee receives a reasonable opportunity for a fair hearing.

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