ITAT Kolkata Restores Appeal Over CPC Notice Sent To Former Consultant, Condones 1,542-Day Delay

The Kolkata Bench of the Income Tax Appellate Tribunal (ITAT) on 22 June held that authorities must condone delay where sufficient cause exists, particularly when tax communications are addressed to a former authorised representative and the taxpayer establishes lack of actual knowledge.

Judicial Member George Mathan and Accountant Member Rakesh Mishra allowed the appeal filed by Angkur Moulik, set aside the order of the Commissioner of Income Tax (Appeals) [CIT(A)], and restored the matter for adjudication on merits after condoning a delay of 1,542 days. The Bench held:

"After considering the details as mentioned in the affidavit and in the peculiar circumstances of the case, we deem it appropriate in the interest of justice and fair play to set aside the order of the Ld. CIT(A) and restore the appeal to him for disposal... on merits."

Angkur Moulik filed his return for Assessment Year (AY) 2019–20 declaring income of Rs. 17.67 lakh. The Centralized Processing Centre (CPC) made an adjustment of Rs. 63.22 lakh under Section 143(1)(a), which raised the assessed income to Rs. 82.10 lakh.

The appeal reached the CIT(A) with a delay of 1,542 days. Moulik stated that he discovered the demand only in April 2025, arguing that the CPC had sent the intimation and subsequent communications to the email and mobile number of his former tax consultant, who failed to forward them. The CIT(A) rejected condonation of delay after relying on records showing service through email, SMS, and post.

Before the Tribunal, Moulik filed an affidavit stating that the registered contact details belonged to his former consultant and that he never received the communications.

The Tribunal accepted this explanation in the peculiar facts and circumstances, and it restored the appeal for fresh adjudication while directing the CIT(A) to grant reasonable opportunity of hearing and consider Rule 46A where applicable.

Accordingly, the ITAT partly allowed the appeal for statistical purposes.