Condonation of delay and fresh hearing secured where ex parte appellate orders were passed without effective opportunity

A long delay in filing the appeals was condoned because the explanation showed no deliberate negligence and the period overlapped with the pandemic-related limitation extension, so merits were not denied on a technical ground. The ex parte appellate orders were then set aside because they had been passed without effective hearing; the matters were remitted to the first appellate authority for de novo consideration after granting reasonable opportunity to produce evidence and make submissions. The matter was thus restored for fresh adjudication with due hearing.

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Issues: (i) Whether the extraordinary delay in filing the appeals deserved condonation. (ii) Whether the ex parte appellate orders deserved to be set aside and the matters remitted for fresh adjudication.

Issue (i): Whether the extraordinary delay in filing the appeals deserved condonation.

Analysis: The delay was examined in the light of the assessee's explanation and the settled approach that adjudication on merits should not be denied where the delay is not shown to be deliberate. The period of delay also overlapped with the pandemic-related limitation extension period. On these facts, the delay was treated as deserving liberal consideration.

Conclusion: The delay was condoned in favour of the Assessee.

Issue (ii): Whether the ex parte appellate orders deserved to be set aside and the matters remitted for fresh adjudication.

Analysis: The appellate orders had been passed ex parte without effective hearing to the assessee. In the interests of fairness, the matters were directed to be reconsidered afresh by the first appellate authority after granting reasonable opportunity to produce evidence and make submissions.

Conclusion: The ex parte orders were set aside and the matters were remanded in favour of the Assessee.

Final Conclusion: The appeals were restored to the first appellate authority for de novo consideration after due opportunity, with the delay in filing having been condoned.

Ratio Decidendi: A long delay in filing an appeal may be condoned where the explanation shows no deliberate negligence and where a fair adjudication on merits requires restoration of the matter with an effective opportunity of hearing.

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