ITAT condones 933-day delay, sets aside ex-parte assessment for non-service of statutory notices under section 144

ITAT Mumbai allowed the appeal, condoning a 933-day delay in filing before CIT(A). The assessee claimed non-receipt of assessment order dated 27.02.2015 and notice u/s. 148 for AY 2009-10. Despite multiple opportunities, Revenue failed to produce assessment records to prove service of notices. The assessee's correspondence and RTI application demonstrated bona fide efforts to obtain documents. ITAT held the ex-parte assessment order u/s. 144 r.w.s. 147 invalid due to non-service of statutory notices, violating natural justice principles.

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Issues Involved:
1. Delay in filing appeal condonation.
2. Validity of assessment order.
3. Validity of reassessment proceedings.
4. Justification of additions to total income.

Delay in Filing Appeal Condonation:
The appellant sought condonation for delay in filing the appeal due to non-receipt of assessment order until September 2017. The delay was attributed to the appellant not receiving the assessment order, which was supported by a letter filed by the authorized representative. The appellant argued that the delay should be condoned under the circumstances.

Validity of Assessment Order:
The assessment order was challenged as invalid on the grounds that it was not served upon the appellant, rendering it barred by limitation. The appellant contended that the order was invalid as it was not received and served upon them, thus questioning its legal validity.

Validity of Reassessment Proceedings:
The appellant argued that the reassessment proceedings were invalid as they were initiated without proper service of notices under sections 148 and 142(1) of the Act. It was asserted that the notice under section 148 was never served, making the reassessment proceedings invalid. The appellant further contended that the Assessing Officer erred in initiating reassessment without independent application of mind.

Justification of Additions to Total Income:
The appellant challenged the additions made to the total income, arguing that the Assessing Officer could not have made these additions without providing adequate opportunity for the appellant to be heard. It was further contended that the additions were made without proper application of mind, solely relying on the investigation report of the sales-tax department.

The Tribunal found that the appellant had valid reasons for the delay in filing the appeal, as the assessment order and notice under section 148 were not received by the appellant. Despite providing opportunities, the Revenue failed to produce assessment records to substantiate the issuance and service of the notice under section 148. Consequently, the reassessment proceedings were deemed invalid, and the appeal of the appellant was allowed. The Tribunal quashed the reassessment proceedings, leaving the merit of the addition to total income open for further consideration.

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