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Facts
The assessee failed to file a return of income for AY 2018-19, despite data indicating property sale and salary income. The case was reopened under Section 147, and the assessee did not respond to notices, leading to an ex-parte assessment order and subsequent dismissal of the first appeal.
Held
The Tribunal found that the lower authorities had passed ex-parte orders without providing the assessee an opportunity to be heard. Therefore, the Tribunal restored the issue to the Assessing Officer for a final opportunity to the assessee to substantiate its claims.
Key Issues
Whether the appeal was rightly decided ex-parte by the lower authorities without granting an opportunity of being heard to the assessee, and if the matter should be remanded for a fresh hearing.
Sections Cited
147, 148, 142(1), 144, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “B”, DELHI
Before: SH. S.RIFAUR RAHMAN & SH. SUDHIR KUMAR
Date of hearing: 26/02/2026 Date of Pronouncement: 13/03/2026 ORDER PER SUDHIR KUMAR, JUDICIAL MEMBER:
This appeal by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC) Delhi [hereinafter referred to as “Ld. NFAC)”] vide order dated 21-03-2025 pertaining to A.Y. 2018-19 arising out the assessment order dated 15-03-2023 u/s.147 r.w.s. 144 of the Income-tax Act, 1961, (in short ‘the Act’)
The brief facts of the case are that the assessee did not file a return of income for A.Y. 2018-19. Based on NMs (Non-Filers Monitoring System) data, it was found that the appellant sold immovable property for Rs.1,17,00,000/- and received salary income of Rs.2,73,746/- which were not disclosed. The case of the assessee was reopened under section 147 of the Act, and despite multiple notices u/s 148 and 142(1) of the Act the assessee did not respond. The Assessing Officer completed the assessment order after making the entire sale consideration of Rs.1,17,00,000/- as short term capital gains and added Rs.2,73,746/- as unexplained income.
Aggrieved the order of the ld. AO the assessee preferred the appeal before the Ld. NFAC who vide his order dated 21- 03-2025 dismissed the appeal. Being aggrieved the order of the Ld. NFAC the assessee is in appeal before the Tribunal.
The Ld. AR of the assessee submitted that the opportunity of being heard was not provided by the lower authorities. The Learned authorized representative for Department of Revenue submitted that departmental authorities have passed reasoned orders. He also submitted that the assessee has not taken part in the proceedings before the lower authorities. The appeal was rightly rejected by the Ld. NFAC.
We have heard the rival contentions and perused the material available on record. It is an admitted fact that despite opportunities granted by Ld. NFAC, the assessee did not file his submissions, for which the appeal was dismissed ex-parte, by the Ld. NFAC.
Since in the instant case the assesse has failed to file his submission after availing the various opportunity. The assessee did not appear before the lower authorities. The ld. AO framed the ex-parte assessment and Ld. NFAC also dismissed the appeal ex-parte. The appeal should have been decided on merit as per the provision of the section 250 of the Act. The appeal was decided ex-parte without giving the opportunity of being heard to the assessee. Therefore, considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. AO with a direction to grant one final opportunity to the assessee to substantiate its claim and decide the issue as per fact and law. The assessee is also directed to appear before the Ld. Assessing officer and co-operate in the proceedings. The grounds raised
by the assessee are accordingly allowed for statistical purposes.