PERUMAL RAJA RAJSHANKAR,PONDICHERRY vs. ITO, CIRCLE-1,, PUDUCHERRY

आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 02.04.2026 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.

- 2 - ITA No.2763/CHNY/2026 Perumal Raja Rajshankar 2. At the very outset, we notice that the order of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to three notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis r.w.s.147 r.w.s.144 r.w.s.144B of the Act.

- 3 - ITA No.2763/CHNY/2026 Perumal Raja Rajshankar failed to furnish the return of income in response to the notice issued u/s.148 of the Act. Further, the assessee did not respond to the various statutory notices issued by the AO during the reassessment proceedings and remained absent throughout both the assessment as well as the appellate proceedings, resulting in ex-parte orders being passed by the authorities below. It was, therefore, contended that there was no violation of the principles of natural justice, as adequate opportunities had been afforded to the assessee at every stage of the proceedings. Accordingly, the Ld.DR prayed that the appeal filed by the assessee be dismissed and the orders of the lower authorities be upheld.

- 4 - ITA No.2763/CHNY/2026 Perumal Raja Rajshankar 6. From the records, we find that the assessee, despite carrying on a liquor business involving substantial turnover, failed to file the return of income u/s. 139(1) of the Act. Even after the issuance of notice u/s.148 of the Act, the assessee did not file the return of income. Further, the assessee neither participated in the reassessment proceedings before the AO nor prosecuted the appeal before the FAA, resulting in ex-parte orders at both stages. Such repeated disregard of the statutory notices and failure to avail the opportunities granted by the Revenue authorities cannot be countenanced, and we strongly deprecate the casual and nonchalant attitude exhibited by the assessee in the conduct of the proceedings. Nevertheless, having regard to the submissions made by the Ld.AR and considering that the object of the appellate proceedings is to determine the correct tax liability on the basis of relevant facts and evidence, we are inclined, in the interest of justice and fair play, to grant one final opportunity to the assessee. Accordingly, we set aside the impugned orders and restore the matter to the file of the AO for fresh adjudication, subject to the condition that the assessee shall pay a cost of Rs.50,000/- (Rupees Fifty Thousand only) to the Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras within one month from the date of receipt of this order. The assessee shall produce

- 5 - ITA No.2763/CHNY/2026 Perumal Raja Rajshankar proof of such payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and furnish all requisite details and evidences in support of his claim and shall not seek unnecessary adjournment. It is ordered accordingly.

Order pronounced in the open court on 28th July, 2026 at Chennai.

Sd/- Sd/- (जॉज� जॉज� के) (प�मावती एस) (PADMAVATHY S) (GEORGE GEORGE K) लेखा सद�य/ACCOUNTANT MEMBER उपा�य� /VICE PRESIDENT चे�नई/Chennai, �दनांक/Dated, the 28th July, 2026 RSR, Sr.PS आदेश क� ��त�ल�प अ�े�षत/Copy to: 1. अपीलाथ�/Appellant 2. ��यथ�/Respondent 3. आयकर आयु�त /CIT, Chennai 4. �वभागीय ��त�न�ध/DR 5. गाड� फाईल/GF. By Order Digitally signed by REKHA REKHA SENTHIL RAJ SENTHIL RAJ Date: 2026.07.30 14:29:33 +05'30'