SKY TECH,COIMBATORE vs. ITO, NCW-3(3), COIMBATORE

Brief facts of the case are that the assessee is a firm engaged in the business of general engineering and filed its return of income on 30.10.2014 for AY 2014-15, declaring total income of Rs.4,20,170/-. The case was selected for limited scrutiny under CASS and the AO issued statutory notices to the assessee by calling for details. In response, the assessee filed its reply along with supporting documents for consideration. On verification of the documents submitted by the assessee, the AO completed the assessment by passing an order u/s.143(3) of the Act dated 30.12.2016 by making various additions to the tune of Rs.29,57,961/- and arrived the total income at Rs.33,78,131/-.

Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A) on 07.02.2017.

At the outset, we observed that ld.CIT(A) has provided four opportunities to the assessee to appear for hearings as detailed in paragraph 3 of the ld.CIT(A) order to support the appeal of the assessee. However, the assessee chose to be silent and did not respond to any of the notices and hence the ld.CIT(A), dismissed the appeal filed by the assessee by confirming the order of the AO by passing an order dated 17.10.2025. Aggrieved by the order of the ld.CIT(A), the assessee preferred an appeal before us.

The ld.AR submitted that the partners of the assessee firm had no knowledge of income tax proceedings including the pending appeals and also Chartered Accountant of the firm was resigned during the period of appellate proceedings and hence did not respond to the notices issued by the ld.CIT(A). Therefore, the assessee could not participate in the appellate proceedings. In view of the above, the ld.AR prayed that the Tribunal may be pleased to set aside the order of ld.CIT(A) and remit the issues to the file of AO. Further, ld.AR assured the bench that the ld.AR will represent on behalf of the assessee before the AO to complete the assessment proceedings effectively.

Per contra, the ld.DR submitted the ld.CIT(A) provided sufficient opportunity to appear before them. However, the assessee has been negligent in responding to the statutory notices and hence, prayed for confirming the order of the ld.CIT(A).

We have heard the rival parties and perused the material available on record and gone through the orders of the lower authorities. We note that the AO has passed an order by considering the documents submitted by the assessee and the information available with the department and the same has been confirmed by the ld.CIT(A), NFAC due to non-participation of the assessee.

Therefore, in the present facts and circumstances of the case and to meet the ends of justice, we are deeming it fit to provide one more opportunity to the assessee and hence we set aside the order of the ld.CIT(A) and remit the matter back to the file to ld.CIT(A) to adjudicate the matter afresh on merits in accordance to law, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and file written submissions and relevant documents if advised so.

In the result, appeal filed by the assessee is allowed for statistical purposes.