Condonation of delay and natural justice supported restoration of the appeal for fresh merits adjudication

A liberal approach to condonation of delay was applied where the assessee claimed that a change of address meant the assessment proceedings and demand notice were not within her knowledge until much later. On that basis, and in light of natural justice, the matter was permitted to be heard on merits. The appeal was restored to the CIT(A) for de novo adjudication, subject to costs, and the delay issue was directed not to be raised again before the first appellate authority.

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Issues: Whether the assessee was entitled to condonation of the delay in filing the first appeal and restoration of the matter for fresh adjudication on merits.

Analysis: The assessee explained that the assessment proceedings were not within her knowledge because of a change of address and that the demand notice was learnt of much later. Applying the liberal approach for condonation of delay and the requirements of natural justice, the Tribunal found it to permit the appeal to be heard on merits. The matter was therefore sent back for de novo consideration, with a cost condition and direction that the delay aspect should not be raised again before the first appellate authority.

Conclusion: The delay was condoned in effect, and the appeal was restored to the CIT(A) for fresh adjudication on merits, subject to costs, in favour of the assessee.

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