ITAT Condones Delayed Appeal Filing Due to COVID-19, Ensures Fair Hearing and Reassessment for Assessee.

The ITAT allowed the appeal, condoning the delay in filing due to valid reasons linked to the COVID-19 pandemic. It recognized the assessee's lack of opportunity to present their case before the AO due to notices sent to an incorrect address. The ITAT restored all issues to the AO for fresh examination, ensuring the assessee's right to a fair hearing and proper assessment. The AO was directed to reevaluate the facts, considering the assessee's explanations and share in the property. The decision underscored the importance of fair procedural conduct and the necessity of considering exceptional circumstances affecting filing timelines.

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Issues involved: Appeal against dismissal of appeal by ld. CIT(A) without condoning delay in filing, assessment u/s 144 r.w.s. 147, delay in filing appeal due to COVID-19, lack of opportunity before AO, restoration of issues to AO for fresh examination.

Issue 1: Dismissal of appeal without condoning delay

The assessee challenged the order of ld. CIT(A) which dismissed the appeal in-limine without condoning the delay in filing the appeal. The assessee argued that there was a reasonable cause for the delay as they were not aware of the assessment order until a lien was created on their bank account. The ITAT held that the delay should be condoned as the assessee had valid reasons for the delay, especially considering the impact of the COVID-19 pandemic on filing procedures.

Issue 2: Lack of opportunity before AO

The assessee contended that they did not have a proper opportunity to present their case before the Assessing Officer (AO) as notices were sent to their old address, and the property in question had been sold before the assessment. The ITAT acknowledged that the assessee was not given a fair chance to explain their case before the AO, leading to a lack of proper assessment. Consequently, the ITAT decided to restore all issues to the AO for a fresh examination to ensure the assessee's rights to be heard and provide necessary explanations.

Issue 3: Restoration of issues to AO for fresh examination

The ITAT observed that the AO had assessed the entire value of the property in the hands of the assessee, even though their share was only 20%. Additionally, the assessee had only paid a portion of the property cost during the relevant year. Therefore, the ITAT directed the restoration of all issues to the AO for a detailed reevaluation, emphasizing the need for a thorough examination of the facts and the assessee's explanations. The assessee was instructed to cooperate fully with the AO for the prompt resolution of the reassessment proceedings.

In conclusion, the ITAT allowed the appeal of the assessee, emphasizing the importance of providing a fair opportunity for the assessee to present their case and have their issues examined properly. The decision highlighted the significance of considering valid reasons for delays in filing appeals, especially in exceptional circumstances like the COVID-19 pandemic.

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