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Facts
The assessee's appeal for Assessment Year 2018-19 was dismissed ex parte by the CIT(A). The assessee's counsel attributed the non-appearance and lack of documents to the passing away of a CA handling tax matters during the Covid-19 period. The Departmental Representative argued that the CIT(A) had already provided numerous opportunities to the assessee.
Held
The Income Tax Appellate Tribunal (ITAT) restored the matter to the file of the CIT(A) for fresh consideration. This restoration is conditional on the assessee depositing an amount of Rs.10,000/- with the income tax department under the head 'Others' and providing the challan to the CIT(A) office. The ITAT also clarified that the CIT(A) should grant proper opportunities, but the assessee would not be entitled to any leniency for further unnecessary adjournments or defaults.
Key Issues
Whether the CIT(A) was justified in passing an ex-parte order, and if the matter should be restored to the CIT(A) for fresh adjudication considering the assessee's reasons for non-appearance.
Sections Cited
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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SHRI LAXMI PRASAD SAHU & SHRI PRAKASH CHAND YADAV
Per Prakash Chand Yadav, Judicial Member
The present appeal of the assessee is arising out of the order of the ld. CIT(Appeals), National Faceless Appeal Centre, Delhi (NFAC) dated 04.10.2024 having DIN ITBA/NFAC/S/250/2024-25/ 1069425274(1) and relates to assessment year 2018-19.
The assessee has raised 7 grounds of appeal. However, at the outset, the ld. counsel for the assessee pointed out that the CIT(A) has passed ex parte order and hence in the interest of justice, the matter may kindly be restored to the file of the ld. CIT(A).
The ld. DR appearing on behalf of the revenue has pointed out that the ld. CIT(A) has granted adjournments and provided accommodation to the assessee upto 2½ years and therefore seeing the non-cooperation from the side of the assessee, the ld. CIT(A) has dismissed the appeal without hearing the assessee.
We have heard the rival submissions and perused the material on record. We observe that the ld. CIT(A) has provided ample opportunities to the assessee, however, the assessee could not appear before the ld. CIT(A). When the Bench asked for the reasons for non- appearance before the ld. CIT(A), the ld. counsel for the assessee averred that one of the CA of the company who has handling the tax matters passed away during Covid-19 period, due to which the assessee was not in a possession of the documents to be filed with CIT(A) office hence could not be able to appear before the ld. CIT(A).
Considering the facts of the case, we deem it appropriate to restore the matter to the file of CIT(Appeals), provided that the assessee will deposit an amount of Rs.10,000/- (Rs. Ten Thousand Only) with the income tax department under the head ‘Others’ and provide the challan to the office of the ld. CIT(A). Needless to say that the ld. CIT(A) will grant proper opportunities to the assessee before passing any order. It is also clarified that in case the assessee would take unnecessary adjournments and in case of further default, the assessee shall not be entitled for any leniency.
In the result, the appeal of the assessee is allowed for statistical purposes.
Pronounced in the open court on this 20th day of January, 2025.