SATYANARAYANA REDDY MANDA,,HYDERABAD vs. ITO WARD-9(4), HYDERABAD

This appeal is filed with a delay of 8 days and the reason attributed for the delay is that the assessee was suffering from severe back pain and was advised bed rest. Ld. DR fairly concedes condoning the delay and recording the same we condone the delay and proceed to dispose of the appeal.

At the outset, it is submitted that the learned Assessing Officer in the process of making the addition in paragraph No.7 of the order observed that the assessee did not furnish any supporting evidence in respect of his claim, and therefore, basing on the material available on record, assessment has to be made under section 144 of the Income Tax Act, 1961 (for short “the Act”) as per the best judgement of the learned Assessing Officer. It is, therefore, clear that for all practical purposes, the assessment order dated 9/12/2019 is an order passed under section 144 of the Act. Even before the 1st appellate authority, the assessee did not enter appearance. Looking at the absence of the assessee, the 1st appellate authority referred to the material available before him and decided the appeal against the assessee.

It is the submission of the Ld. AR that the assessee could secure the relevant information subsequent to the passing of the assessment order and since the assessee could not issue the notice, the assessee could not enter appearance before the 1st appellate authority. Ld. AR, therefore, prayed that if an opportunity is granted, the assessee is ready to produce all the relevant material before the authorities and the matter disposed of on merits. Ld. DR submitted that sufficient opportunity has already been provided to the assessee, and therefore, there is no point in assessee seeking further opportunity.

We have gone through the record in the light of the submissions made on either side. It is a fact that in the assessment order itself, the learned Assessing Officer observed that because the assessee failed to furnish the requisite information, here no option but to proceed to complete the assessment ex parte under section 144 of the Act as per the best judgement basing on merits of the case and information available with the Department. Insofar as the proceedings before the Ld. CIT(A) are concerned, it is the submission of the Ld. AR that the notices were issued through ITBA portal and, therefore, the assessee could not notice the same.

Be that as it may, assessee does not stand to gain by allowing the matter is to be disposed of ex parte and all the endeavour of the Revenue is to determine the correct tax liability of the assessee. Having regard to the facts and circumstances of the case, we are of the considered opinion that it would be in the interest of justice to afford an opportunity to the assessee to dispose of the matter on merits.

With this view of the matter, we set aside the orders of the authorities below and restore the issue to the file of the learned Assessing Officer for taking a view according to law after affording an opportunity to the assessee. We make it clear that it is the last and final opportunity to the assessee, and if he fails to file the same, no reasons would be entertained further.

In the result, appeal of the assessees treated as allowed for statistical purpose.