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Facts
The assessee filed a return declaring NIL income and a loss, which was selected for scrutiny. Despite notices, the assessee did not comply with the Assessing Officer or the CIT(A). The case was decided ex-parte by the lower authorities.
Held
The Tribunal, in the interest of justice, set aside the matter to the Assessing Officer to decide denovo after providing opportunities. A cost of INR 5,000/- was levied on the assessee for non-compliance.
Key Issues
Whether the matter should be remanded back to the AO for fresh adjudication due to the assessee's non-compliance before the lower authorities, and whether costs should be imposed.
Sections Cited
250, 144, 143(2)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI “G” BENCH: NEW DELHI
Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL
The present appeal has been filed by the assessee against the order dated 01.03.2017 passed by Ld. Commissioner of Income Tax (A)-19, New Delhi [“Ld.CIT(A)”] in Appeal No.47/15-16 u/s 250 of the Income Tax Act, 1961 [“the Act”] arising from the assessment order dated 20.03.2015 passed u/s 144 of the Act pertaining to assessment year 2012-13.
The assessee has raised following grounds of appeal:- 1. “BECAUSE the Ld. CIT(A)-19 has erred both on facts and in law by adding in income of Rs. 3,19,08,123/- claimed as unsecured loans as unverifiable/ non-genuine.
2. BECAUSE the Ld. CIT(A)-19 has erred both on facts and in law by arbitrary disallowing 10% of total expenditures claimed by it in business, barring depreciation, during the Assessment Year. 3. BECAUSE the Ld. CIT(A)-19 has erred by not pronouncing its decision over initiation of Penalty proceedings under various sections even though the appellant has taken a ground of appeal before him, thereby, leaving this issue open and undecided.
4. BECAUSE there was a reasonable cause for Appellant being prevented from not perusing his appeal before Ld. CIT(A)-19 and proceedings before Assessing Officer and craves leave of the Tribunal for remanding the matter back in the interest of justice.
5. The appellant craves leave to add to alter, amend or delete above grounds of appeal.”
Brief facts of the case are that the assessee e-filed his return of income on 26.07.2013, declaring NIL income and claimed current year loss of INR 51,71,676/-. The case was selected for scrutiny under CASS. The notice u/s 143(2) of the Act was issued on 05.09.2014 but no compliance was made on behalf of the assessee. Thereafter, various notices were issued to the assessee for furnishing the requisite details but there was no compliance on behalf of the assessee as and when called for by the lower authorities. Even before Ld.CIT(A), no compliance was made despite issuing various notices for hearing.
Heard both the parties and perused the material available on record. We find that the case of the assessee is decided ex-parte by the lower authorities as no effective compliance was made. Though, it is fault on the part of the assessee in not making compliances however, in the larger interest of justice, the matter is set aside to the file of the AO with the direction to decide the issue denonvo after providing various opportunities to the assessee. Further, it is seen that the assessee has not participated before the lower authorities therefore, a cost of INR 5,000/- is levied looking to the conduct of the assessee which is to be paid to Legal Aid Authority of Hon’ble Delhi High Court. The assessee is directed to produce the copy of receipt of INR 5,000/- before the AO during the course of set aside proceedings and further direct to file all the necessary evidences in support. With these directions, the appeal of the assessee is partly allowed for statistical purposes.
In the result, appeal of the assessee is partly allowed for statistical purposes. Order pronounced in the open Court on 30.06.2025.