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Facts
The assessee, an individual, did not file an Income Tax Return (ITR) for assessment year 2014-15. The case was reopened due to information about a transaction of Rs. 15,00,00,000/-. Despite multiple notices, the assessee failed to appear before the Assessing Officer (AO) and the Commissioner of Income-Tax (Appeals) (CIT(A)). The assessee claimed non-appearance was due to a medical ailment.
Held
The Tribunal noted that the assessee failed to appear before the AO and CIT(A) despite several notices, but also considered the assessee's plea of medical ailment. In the interest of justice, the Tribunal set aside the orders of the AO and CIT(A) and restored the matter to the file of the AO for a fresh decision, ensuring a fair opportunity of hearing to the assessee.
Key Issues
Whether the appeals should be dismissed due to non-compliance with notices, or if a medical ailment warrants restoring the matter for a fresh hearing.
Sections Cited
250, 148, 148(1), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘E’: NEW DELHI
PER VIMAL KUMAR, JUDICIAL MEMBER
The appeal filed by the assessee is against order dated 05.09.2024 of learned Commissioner of Income-Tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi (hereafter referred to as “Ld. CIT(A)”) under Section 250 of the Income-Tax Act,1961 (hereinafter referred to as “the Act”) arising out of assessment order dated 27.03.2022 of National Faceless Appeal Centre (hereinafter referred to as the “Ld. AO”)for assessment year 2014-15.
Brief facts of case are that assessee, an individual, did not file ITR for the year 2014-15. Information received as per AIR/MIS Information is available with the department, wherein the assessee has the following transaction during the year under consideration. The assessee had entered into transaction amounting to Rs.15,00,00,000/-. The case was reopened under Section 148 of the Act after approval for reopening the assessment agreed on 31.03.2021 by Ld. PCIT, Delhi- 20. Notice under Section 148 of the Act dated 31.03.2021 was issued. No response was made by assessee. Notice under Section 148(1) of the Act dated 16.11.2021 was issued to the assessee. No compliance was made by the assessee. Notice again under Section 142(1) of the Act dated 19.12.2021 was issued. Assessee failed to comply with the notice. Permission dated 24.12.2021 was issued but of no use. On completion of proceedings, Ld. AO vide order dated 27.03.2022, made additions of Rs.15,00,00,000/-. Against order dated 27.03.2022, appellant/assessee preferred appeal before the Ld.CIT(A) which was dismissed vide order dated 05.09.2024.
Being aggrieved, appellant/assessee preferred present appeal.
Learned Authorized Representative for the appellant/assessee submitted that appellant/assessee due to medical ailment was not present at the address and could not receive the notices during assessment and appellate proceedings. The assessee undertook to appear before the Departmental Authorities.
Learned Authorized Representative for the Department submitted that appellant/assessee failed to appear before Departmental Authorities despite several notices.
From examination of record in the light of aforesaid rival contentions, it is crystal clear that despite several notices, appellant/assessee failed to appear during assessment and appellate proceedings before the Ld. AO and Ld. CIT(A). Appellant/assessee has pleaded that due to medical ailment, he was not available at his address and could not comply with the notices.
In view of above material facts in the interest of justice, it considered necessary to set aside orders dated 27.03.2022 of Ld. AO and 05.09.2024 of Ld. CIT(A) and to restore the matter to the file of the Ld. AO for fresh decision in accordance with law after affording fair opportunity of hearing to appellant/assessee.