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Facts
The Assessee filed an appeal against the order of the Ld. CIT(A) for AY 2015-16. The original assessment order was ex-parte under Section 147 read with Section 144 of the Income Tax Act, 1961. The Assessee did not appear before the lower authorities.
Held
The Tribunal noted that the Assessee did not appear before the lower authorities, leading to ex-parte orders. However, to ensure justice, the Tribunal restored the issue to the Assessing Officer for a de-novo assessment, directing the AO to provide an opportunity of being heard.
Key Issues
Whether to allow the appeal when the assessee remained ex-parte before the lower authorities, and if so, to what extent.
Sections Cited
147, 144
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Income Tax Appellate Tribunal, DELHI
ORDER PER YOGESH KUMAR, U.S. JM:
The present appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Appeals/ National Faceless Appeal Centre (‘Ld. CIT(A)/NFAC’ for short), New Delhi dated 27/09/2024 for the Assessment Year 2015-16.
An ex-parte assessment order came to be passed u/s 147 read with Sections 144 of the Income Tax Act, 1961 ('Act' for short) by making certain additions. The Assessee preferred an Appeal before the Ld. CIT(A) which has been dismissed vide order impugned dated 27/09/2024. As against the order of the Ld. CIT(A), the Assessee preferred the present Appeal.
None appeared for the Assessee. Considering the issue involved in the present Appeal we deem it fit to decide the Appeal on hearing the Ld. Department's Representative and perused the material available on record.
The Ld. Department's Representative submitted that the Assessee is a chronic defaulter who has not appeared before the Lower Authorities, therefore, both the A.O. as well as the Ld. CIT(A) have passed the orders in accordance with law which requires no interference, thus by relying on the orders of the Lower Authorities sought for dismissal of the Appeal.
We have heard the Department's Representative and perused the material available on record. Both the order of the A.O. as well as order of the Ld. CIT(A) are ex-parte, wherein the Assessee has not participated in any of the proceedings and even the Ld. CIT(A) has not decided all the grounds of Appeal on its merits. In view of the above, in the interest of justice, we deem it fit to restore the issue to the file of the A.O. for de-novo assessment. Needless to say, the A.O. shall provide opportunity of being heard to the Assessee before passing the assessment order in accordance with law. The Assessee is also directed to participate in assessment proceedings without fail.
6. In the result, the Appeal of the Appellant is partly allowed for statistical purpose.