MAMTA YASPAL KATARIA,AHEMDABAD vs. THE INCOME TAX OFFICER , WARD-6(3), PUNE

This appeal by the assessee arises out of the ex parte order dated 16-02-2023 passed by the CIT(A) in National Faceless Appeal Centre, Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2015-16.

Briefly stated, the facts of the case are that the assessee filed the return declaring total income at Rs.4,04,290/-. The case was selected for scrutiny under the category ‘complete’ with reason of suspicious sale transaction in shares and exempt long term capital gains shown in the return (penny stock). Notice u/s.143(2) was issued on the assessee. The assessment was completed u/s.143(3) determining the total income at Rs.71,55,090/-. No reprieve was provided by the ld. CIT(A), against which the assessee has approached the Tribunal.

The ld. AR submitted that the ld.CIT(A) has referred to three notices at para 5.1 of his order, which, according to him, were served on the assessee but remained unreplied. That is how, he dismissed the appeal of the assessee ex parte. The ld. AR submitted that the first notice dt.02-05-2022 was not served upon the assessee. For the second notice dt.06-12-2022, the assessee sought adjournment, a copy of the assessee’s request seeking adjournment, has been placed at page 9 of the paper book. For the third notice dt.24-01-2023, the assessee replied by taking the additional ground. Copies of the above reply are placed at pages 10 and 11 of the paper book.

After hearing both the sides and considering the entirety of facts and circumstances of the case, we find that the assessee was not given adequate opportunity of hearing. In such circumstances, and without entering into merits, we are of the considered opinion that it would be just and fair if the impugned order is set-aside and the matter is remitted to the file of the ld. CIT(A) with a direction to decide the appeal afresh as per law after allowing a reasonable opportunity of hearing to the assessee. We order accordingly.

In the result, the appeal is allowed for statistical purposes. Order pronounced in the Open Court on 22nd June, 2023.