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Facts
The assessee's appeal arose from an ex-parte order passed by the NFAC due to non-issuance of notice and the assessee's failure to file a return of income or pay advance tax. The assessee also failed to represent its case before the AO due to inadvertent oversight of emails.
Held
The Tribunal found that while the appeal was dismissed ex-parte, there was no established malafide intention on the part of the assessee. Considering the interest of justice, the matter was remitted back to the AO for de novo consideration with proper opportunity to be heard.
Key Issues
Whether the ex-parte order passed by the NFAC is sustainable when no notice was issued to the assessee and whether the assessee should be granted a fresh opportunity to represent its case.
Sections Cited
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Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
Before: SMT. BEENA PILLAI & SHRI RENU JAUHRI
Per: Smt. Beena Pillai, J.M.: The present appeal filed by the assessee arises out of order dated 24/10/2024 passed by NFAC, Delhi, for assessment year 2016-17. 2. At the outset the Ld.AR submitted that, the order passed by the NFAC is ex-parte order as no notice was issued to the assessee. It is submitted that the Ld. CIT(A) dismissed the appeal A.Y. 2016-17 J K Group Construction as infructuous, because the assessee did not file return of income as well as failed to paid any advance tax.
He further submitted that even before the Ld.AO assessee could not represent its case. It is submitted that assessee failed inadvertently to check the e-mails during the relevant period and thus could not represent before the assessing officer effectively. The Ld.AR submitted that the assessee may be granted one more opportunity in the interest of justice. As there was no malafide intention on behalf of assessee in or appearing before the authorities below.
On the contrary the Ld.DR vehemently opposed the submissions of the assessee. However could not establish any malafide intention on the part of the assessee by not appearing before the Ld.AO. We have perused the submissions advance by both the sides in the light of record placed before us.
Considering the submissions of the both the sides and in the interest of justice, we deemed it appropriate to remit the issue back to the Ld.AO for de novo consideration. The Ld.AO is directed to call for necessary details in respect of the claim and to pass detail order on merit. Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly the ground raised by the assessee stands partly allowed statistical purposes. In the result the appeal filed by the assessee stands partly allowed for statistical purposes.