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Facts
The assessee filed two appeals challenging the impugned order passed by the CIT(A) for assessment years 2011-12 and 2012-13. The assessee was ex-parte before the AO and CIT(A). The appeals were clubbed as the issues were common and identical.
Held
The Tribunal restored the matter back to the file of the AO for a denovo assessment, providing the assessee with a sufficient opportunity to be heard. A cost of Rs. 5,000/- was imposed on the assessee, to be deposited in the Prime Minister Relief Fund.
Key Issues
Whether the assessee should be granted a fresh opportunity for denovo assessment after being ex-parte in previous proceedings.
Sections Cited
250
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Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI SANDEEP GOSAIN
Date of Hearing 04.11.2025 Date of Pronouncement 12.11.2025 ORDER PERSANDEEP GOSAIN, JM:
These two appeals have been filed by the assessee challenging the impugned order dated 31.07.2025 respectfully passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2011-12 & 2012-13.
Since all the issues involved in these two appeals are 2. common and identical and belongs to one assessee therefore, they have been clubbed, heard together and consolidated order is being passed. Firstly we shall take A.Y 2011-12as lead case and facts narrated therein.
From the records, I noticed that assessee was ex-parte before Ld. CIT(A) and also before AO. However, Ld. AR explained the circumstances, because of which the assessee could not participate in the proceedings before the AO and Ld. CIT(A), therefore after considering the submissions of both parties, I am of the view that the cause of substantial justice would be met only in case the matter is restored back to file of AO for deciding the same afresh after providing sufficient opportunity of hearing to the parties. Subject to cost of Rs. 5,000/- imposed upon the assessee which shall be deposited in the Prime Minister Relief Fund and a copy of the receipt shall be placed on file before AO within 30 days from the date of receipt of this order. Consequently, the matter is restored to the file of AO for denovo assessment after granting the assessee adequate opportunity to substantiate its case. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.
Before parting, I make it clear that our decision to restore the matter back to the file of the AO shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the AO independently in accordance with law.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
As the facts and circumstances in this appeal is identical to for the A.Y 2011-12 (except variance in figures) and the decision rendered in above paragraph would apply mutatis mutandis for this appeal also. Accordingly, the grounds of appeal of the present appeals also stands allowed for statistical purposes.
In the result, both the appeals filed by the assessee allowed for statistical purposes.