NAYAN BUILDERS AND DEVELOPERS PRIVATE LIMITED,MUMBAI vs. ITO WD 7(2)(3), MUMBAI

Facts

The assessee filed two appeals challenging ex-parte orders passed by the National Faceless Appeal Centre (NFAC) under Section 250 of the Income Tax Act, 1961 for assessment years 2003-04 and 2010-11. The assessee contended that they were not provided proper and sufficient opportunity of hearing by the Ld. CIT(A), leading to a breach of natural justice, and attributed this to miscommunication with their AR.

Held

The Income Tax Appellate Tribunal found reasonable cause for the assessee's inability to effectively represent their case before the Ld. CIT(A). The Tribunal restored the matter back to the file of the Ld. CIT(A) for fresh adjudication, granting another opportunity to the assessee, while also imposing a nominal cost of Rs. 2,000/- on the assessee for prior non-cooperation.

Key Issues

Whether the assessee was denied proper opportunity of hearing before the Ld. CIT(A), leading to ex-parte orders, and if the matter should be restored for fresh adjudication based on principles of natural justice.