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Facts
The assessee's appeal was filed challenging an ex-parte order passed by the CIT(A). The assessee claimed that due to a technical glitch and communication issues with the CIT(A)'s office, they were unable to present their case effectively. The original assessment was also a best judgment assessment under section 144.
Held
The Tribunal acknowledged that there was a reasonable cause preventing the assessee from effective representation before the CIT(A). Therefore, the Tribunal set aside the impugned order and restored the matter to the file of the CIT(A) for fresh adjudication, granting one more opportunity to the assessee.
Key Issues
Whether the assessee was prevented by a reasonable cause from appearing before the CIT(A), and if so, whether the matter should be restored for fresh adjudication.
Sections Cited
250, 148, 142(1), 144, 270A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C” BENCH MUMBAI
Before: HON’BLE SHRI SANDEEP GOSAIN & SHRI GIRISH AGRAWAL
Date of Hearing 23.09.2025 Date of Pronouncement 31.10.2025 आदेश / ORDER PER SANDEEP GOSAIN, JM:
The present appeal has been filed by the assessee challenging the impugned order dt. 03.10.2024 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 2017-18.
At the very outset, we noticed that assessee was ex- parte before Ld. CIT(A). In this regard Ld. AR filed written submissions and explained the circumstances before the bench that there was ‘Reasonabl cause’ which prevented the assessee to represent properly before Ld. CIT(A). The written statement filed by the assessee is reproduced herein below:
1. 1. The Appellant is before this Hon'ble Tribunal challenging the order dated 03.10.2024 passed by the Learned CIT(A) under section 250 of the Act in an ex parte manner.
2. The brief facts of the case are as under: a. The Learned AO issued notice under section 148 on 31.03.2021. In response, the Appellant filed reply on 13.12.2021. b. Thereafter, vide letter dated 10.03.2022, filed before the AO on 11.03.2022, the Appeliant raised objections to the reasons recorded. c. Subsequently, vide letter dated 13.03.2022, filed on 14.03.2022, the Appellant furnished details in response to notice issued under section 142(1) dated 15.12.2021. d. Vide letter dated 21.03.2022, filed on the same day, the Appellant reaffirmed the details earlier furnished and also provided explanations regarding revaluation of land and the valuer's report. e. The AO issued a show-cause notice dated 22.03.2022. In response, the Authorized Representative filed reply on 23.03.2022 with necessary justifications. f. Despite these submissions, the AO passed a best judgment assessment under section 144 on 25.03.2022, alleging that the Appellant had been non-responsive.
3. Aggrieved, the Appellant preferred appeal before the CIT(A) on 22.04.2022.
4. The Appellant acknowledges receipt of notice dated 07.02.2024 and filed an adjournment request. However, further notices dated 19.02.2024 and 25.09.2024, issued by the office of the CIT(A), unfortunately went unnoticed in the Appellant's email account and therefore remained unattended.
5. The Learned CIT(A) thereafter disposed of the appeal ex parte by order dated 03.10.2024. The Appellant submits that a copy of the said order was neither received nor was the Appellant made aware of its passing until receipt of penalty notice dated 23.05.2025 under section 270A of the Act.
6. The Appellant thereafter obtained a copy of the impugned order from the office of the Assessing Officer on 29.05.2025. When the Appellant attempted to download the same from the income-tax portal, a technical glitch prevented access and displayed an error message which is as under :- 7. The Appellant submits that the impugned order has been passed without granting proper opportunity of being heard. The detailed submissions and replies filed before the AO during assessment proceedings have not been considered either by the AO or by the CIT(A).
In light of the above, the Appellant prays that: The impugned order dated 03.10.2024 passed by the Ld. CIT(A) may be set aside. The matter may be restored either to the file of the Assessing Officer or the CIT(A) with a direction to grant adequate opportunity to the Appellant to present its case on merits. Prayer In view of the facts and circumstances narrated hereinabove, the Appellant humbly prays that this Hon'ble Tribunal be pleased to set aside the impugned order and restore the matter for fresh adjudication after granting sufficient and reasonable opportunity of hearing to the Appellant.
On the other hand DR relied upon the orders passed by the revenue authorities.
Be that as it may, without going into the merits of the issues raised by the assessee and considering the fact that there was reasonable cause, because of which assessee could not put effective representation before Ld. CIT(A). Hence the Bench is of the view that one more opportunity be given to the assessee to represent his case before Ld. CIT(A). Therefore considering the overall circumstances of the present case, we deem it proper to restore the matter back to the file of CIT(A) for deciding the same afresh by providing one more opportunity to the assessee. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.
Before parting, we make it clear that our decision to restore the matter back to the file of the Ld. CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute which shall be adjudicated by the Ld.CIT(A) independently in accordance with law.
In the result the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 31.10.2025 Sd/- Sd/- (GIRISH AGRAWAL) (SANDEEP GOSAIN) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 31/10/2025 KRK, PS आदेश की �ितिलिप अ�ेिषत/Copy of the Order forwarded to : अपीलाथ� / The Appellant 1. ��थ� / The Respondent. 2. संबंिधत आयकर आयु� / The CIT(A) 3. आयकर आयु�(अपील) / Concerned CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण,मु�बई/ DR, ITAT, Mumbai 5. गाड� फाईल / Guard file. 6. आदेशानुसार/BY ORDER, स�ािपत �ित //True Copy//
उप/सहायक पंजीकार ( Asst. Registrar) आयकर अपीलीय अिधकरण, मु�बई मु�बई / ITAT, Mumbai मु�बई मु�बई