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Facts
The assessee filed an appeal against the ex-parte order of the CIT(A) which upheld the assessment order passed ex-parte by the AO. The assessment order involved additions under Section 69A read with Section 115BBEE of the Act for AY 2016-17.
Held
The Tribunal noted that both the AO and CIT(A) orders were ex-parte and the CIT(A) had not decided all grounds on merits. In the interest of justice, the matter was restored to the AO for de-novo assessment, with a direction to provide an opportunity of hearing to the assessee.
Key Issues
Whether the ex-parte assessment and appellate orders were passed in violation of natural justice principles, and if so, the appropriate relief.
Sections Cited
147, 144, 69A, 115BBEE
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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 12/11/2024 for the Assessment Year 2016-17.
An assessment order came to be passed on 23/05/2023 u/s 147 r.w. Section 144 of the Income Tax Act, 1961 ('Act' for short) by making certain addition u/s 69A r.w. Section 115BBEE of the Act. The Assessee preferred an Appeal before the Ld. CIT(A) which has been dismissed on 12/11/2024 vide order impugned. As against the order of the Ld. CIT(A) dated 12/11/2024, the Assessee preferred the present Appeal.
The Ld. Counsel for the Assessee submitted that both the order of the A.O. as well as Ld. CIT(A) are ex-parte and the Ld. CIT(A) has not decided on the grounds of the Appeal of the Assessee and the order impugned came to be passed in violation of principals of natural justice. Thus, sought for allowing the Appeal.
Per contra, 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 respective 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 both the parties 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. 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.