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Facts
The assessee was ex-parte before the Assessing Officer (AO) and the Commissioner of Income Tax (Appeals) (CIT(A)). The assessee's counsel requested the matter to be decided on merits. The tribunal noted that the assessee had not provided justifiable reasons for non-appearance before the revenue authorities.
Held
The tribunal restored the matter back to the file of the AO for deciding it afresh on merits, providing an opportunity of hearing to both parties and allowing the assessee to place on record supporting documents. A nominal cost of Rs. 2000/- was imposed on the assessee.
Key Issues
Whether the assessee's appeal should be decided on merits despite being ex-parte before lower authorities and whether an opportunity should be granted for fresh adjudication.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “A” Bench, Mumbai.
Before: Shri Sandeep Gosain(JM) & Shri Prabhash Shankar(AM)
O R D E R Per Sandeep Gosain (JM) :-
This appeal filed by the assessee against the order dated 25.2.2025 passed by Ld. CIT(A) for A.Y. 2016-17.
At the very outset, we noticed that the assessee was ex-parte before the Ld. AO and also before Ld. CIT(A) and now before us Ld. AR has requested to send the matter for deciding the same on merits.
We have heard Ld. Counsels of both parties at length and we found that no justifiable reason put forth by the assessee for not appearing before both the Revenue Authorities.
Be that as it may, the Bench is of the view that the ends of justice would be met only if the issues between the parties are decided on merits after evaluating and appreciating the documents placed on record and relied upon by the assessee subject to nominal cost of Rs. 2000/- is imposed upon the assessee which is to be deposited in the “Prime Minister Relief Fund” with the direction to place on record copy of receipt before the Ld. AO within 30
2 Lata Satish Mahajan days from the date of receipt of this order. Therefore, we restore the matter back to the file of AO for deciding it afresh by providing opportunity of hearing to the parties and allowing the assessee to place on record documents for substantiate his claim. With these directions, we restore the matter back to the file of Ld. AO to decide the matter afresh on merits after providing opportunity of hearing to both the parties. The assessee shall not seek adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.
4. Before parting, we make it clear that our decision to restore the matter back to Ld. AO shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by Ld. AO independently in accordance with law.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 18/06/2025.