RAJESWARI JAYAKUMAR ALYA MANASA,CHENNAI vs. ASSESSMENT UNIT, INCOME TAX DEPARTMENT

At the very outset, we notice that the order passed by the 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.

The Ld. AR submitted that the assessee is a film artist and was frequently occupied with shooting schedules. Therefore, failed to take note of the notices of hearing issued by the FAA on 01.06.2026, 07.07.2026 and 24.07.2026. It was further submitted that the notices were sent to the email ID of the assessee’s erstwhile auditor, which had not been updated, as a result of which the assessee’s authorized representative remained unaware of the appellate proceedings and could not represent her case before the FAA. The Ld. AR further contended that the audit report and financial statements furnished before the AO during the assessment proceedings had not been duly considered. Accordingly, the Ld. AR pleaded that, in the interest of justice and fair play, one more opportunity may be granted to the assessee to substantiate her case before the AO.

We have heard the rival submissions and perused the material available on record. The Ld. AR submitted that the FAA had issued three notices of hearing on 01.06.2026, 07.07.2026 and 24.07.2026, which the assessee had failed to take note of, resulting in the appellate proceedings being concluded ex-parte. The Ld. AR further submitted that the assessee had filed the audit report and financial statements before the AO through the e-portal, but the same had not been taken into consideration. She, therefore, pleaded that one more opportunity may be granted to the assessee to substantiate her case before the AO and undertook that the assessee would duly appear and furnish all necessary details and evidences as and when called for. We strongly deprecate the nonchalant attitude of the assessee in failing to respond to the statutory notices issued by the FAA. Nevertheless, considering the submissions of the Ld. AR and in the interest of justice and fair play, we deem it appropriate to restore the matter to the file of the AO for fresh adjudication in accordance with law. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is

In the result, the appeal filed by the assessee is allowed for statistical purposes and the stay application filed by the assessee is dismissed.