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Facts
The assessee did not comply with multiple notices issued by the Assessing Officer, leading to an ex-parte assessment order which was also upheld by the Ld. Commissioner. The assessee's appeal was filed against this ex-parte order.
Held
The Tribunal acknowledged the assessee's non-compliance but, considering the peculiar facts and potential miscommunication regarding notices, decided to remand the case. The assessee was granted an opportunity to present their case afresh, subject to a deposit.
Key Issues
Whether the assessee should be granted relief despite non-compliance with notices, and if so, under what conditions.
Sections Cited
250, 69A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “SMC”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
This appeal has been preferred by the Assessee against the order dated 28.01.2025, impugned herein, passed by the National Faceless Appeal Centre (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) u/s 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2018-19.
Admittedly, the impugned order is an ex-parte, wherefrom it clearly appears that seven notices in total were issued to the Assessee, however, the Assessee made no compliance and therefore in the constrained circumstances, the Ld. commissioner decided the appeal filed by the Assessee on the basis of records available and ultimately affirmed the addition of Rs. 7,62,260/- which was made by the assessing officer as unexplained income u/s 69A of the Act.
Considering the conduct of the Assessee as non-compliant this Court is inclined not to grant any relief, however, considering the peculiar facts and circumstance of the case in totality as the issue involved remained to be adjudicated in its right perspective and proper manner, as submitted by Ld. counsel Shri. Devendra Jain and to the effect that there can be miscommunication qua receiving of the notices, this Court is inclined to remand the instant case to the file of the Ld. commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee but subject to deposit of Rs. 1,100/- in the Revenue Department under “other heads” within 15 days from the date of this order.
The Assessee would be at liberty to raise all legal issues before the Ld. Commissioner.
In the result, the appeal filed by the Assessee is allowed for statistical purposes.
Order pronounced in the open court on 11.06.2025.