2023 (10) TMI 1240 - AT - Income Tax

Appeals Remanded for Fresh Adjudication Due to Lack of Proper Notice and Pandemic Delays, Under Sec. 271(1)(c) of IT Act

The Tribunal addressed twin appeals concerning the assessment year 2008-2009 against the CIT(A)-2, Nagpur's orders under sec. 271(1)(c) of the Income Tax ... Ex-parte adjudication compelled by CIT(A) - Penalty u/s 271(1)(c) - Covid-2019 pandemic outbreak - HELD THAT:- Once there is no material on record in the CIT(A)'s order that this assessee has been actually served the last corresponding notice(s) of hearing in both these appeals. We are mindful of the fact that the hearing in both these appeals had taken place after Covid-2019 pandemic outbreak followed by many lockdowns. Faced with this situation, we deem it appropriate to restore assessee’s instant twin appeals back to the CIT(A) for his afresh appropriate adjudication as per law, preferably within three effective opportunities of hearing. Ordered accordingly. Delay(s) of 266 days each in both these appeals as instituted on 28.12.2020 stands condoned since covered under Covid-2019 pandemic outbreak period between 15.03.2020 to 28.02.2022 as per hon’ble apex court’s directions in Cognizance for Extension of Limitation, In re [2021 (11) TMI 387 - SC ORDER] read with judgment in Cognizance for Extension of Limitation, In re [2021 (3) TMI 497 - SC ORDER] and [2020 (5) TMI 418 - SC ORDER], excluding the covid-19 pandemic outbreak period from for all intents and purposes under the limitation law. Assessee's twin appeals for AY 2008-09 against CIT(A) orders affirming assessment additions and consequential penalties under section 271(1)(c) were restored to the CIT(A) for de novo adjudication. The Tribunal found no material in the CIT(A)'s ex-parte orders showing service of the last notices of hearing and rejected the Revenue's contention of assessee non-cooperation. Appeals are remitted for fresh adjudication 'preferably within three effective opportunities of hearing.' Delays of 266 days in filing the appeals (instituted 28.12.2020) were condoned as falling within the Covid-2019 pandemic outbreak period, relying on Supreme Court directions in Cognizance for Extension of Limitation, In re 438 ITR 296 (SC), In re 432 ITR 206 (SC) dated 08-03-2021 and 421 ITR 314, which exclude the pandemic period from limitation. Appeals allowed for statistical purposes and order to be placed in respective files. Order pronounced 26.10.2023.