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Income Tax Appellate Tribunal, B BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid two appeals filed by the assessee for Assessment Years (AYs) 2017-18 & 2018-19 arises out of the orders of Learned Commissioner of Income Tax (NFAC), Delhi [hereinafter “CIT(A)”] dated 03.07.2025 & 13.06.2025, respectively.
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The assessee is a company and had not filed its return of income for the relevant assessment year. Based on the information, the A.O found that the assessee has rental receipts of Rs. 33,60,000/-.
Since no return of income was filed, the A.O. reopened the assessment. The A.O. thereafter completed the assessment u/s. 144 of the Act by making an addition of Rs. 23,39,680/- in respect of rental income, as the assessee had failed to file the return of income as well as furnish the details called for. Aggrieved, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee failed to comply with the notices issued.
The Learned Authorized Representative (Ld. A.R.) contended that the A.O did not provide sufficient opportunity, as the show cause notice dated 18.05.2023 required compliance by 23.05.2023, thereby granting only four days time. It was therefore submitted that one more opportunity may be granted to the assessee to present its case before the A.O.
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The Learned Departmental Representative (Ld. D.R) relied on the orders of the lower authorities and requested that the appeal be dismissed.
We have heard the rival submissions and perused the materials available on record. We have heard the rival submissions and perused the materials available on record. We find that the A.O. issued a show cause notice on 18.05.2023 granting only four days’ time for compliance, and that the Ld. CIT(A) also passed the order ex parte as the assessee did not respond to the notices issued and failed to furnish the requisite details. However, keeping in view the principles of natural justice, we are of the opinion that one more opportunity should be granted to the assessee to substantiate her case before the A.O.
Accordingly, we set aside the impugned order and remit the matter back to the file of the A.O for denovo assessment in accordance with law, after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to comply with all the notices issued by the A.O and furnish all relevant details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
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: 7. The facts and issues involved in the assessee’s appeal for A.Y. 2018–19 are identical to those considered in A.Y. 2017–18. Following our decision in A.Y. 2017–18, we similarly set aside the impugned order for this year and remit the matter back to the file of the A.O for denovo assessment in accordance with law, after affording reasonable opportunity of being heard to the assessee.
In the result, both the appeals filed by the assessee are allowed for statistical purposes.
Order pronounced on 30th day of October, 2025 at Chennai.