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Facts
The assessee's appeal was dismissed ex-parte by the FAA due to non-compliance with hearing notices. The assessee claimed unawareness of proceedings and missed notices sent via email. The assessment was completed under section 147 r.w.s. 144 r.w.s.144B of the Act on a best judgment basis.
Held
The Tribunal noted the assessee's nonchalant attitude but, in the interest of justice, decided to restore the matter to the AO. This was conditional upon the assessee paying a cost of Rs. 10,000/- to the Tamil Nadu State Legal Services Authority.
Key Issues
Whether the ex-parte order of the FAA, passed due to the assessee's non-response to notices, should be set aside and the matter restored for proper adjudication, considering principles of natural justice?
Sections Cited
250, 147, 144, 144B
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA
आदेश/ O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal filed by the assessee is directed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 30.05.2025, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2015-16.
2 -: 2. At the very outset, we notice that the order passed by the First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to three notices issued from the office of the First Appellate Authority. Further, we also notice that the assessment has been completed on best judgment assessment u/s. 147 r.w.s. 144 r.w.s.144B of the Act.
The Ld.AR for the assessee submitted that FAA had dismissed the appeal by passing an ex-parte order, on the ground that assessee did not respond to the hearing notices issued from the office of the FAA. The Ld.AR submitted that the assessee was unaware of the income-tax proceedings and did not check his e-mail frequently. Therefore, the assessee has failed to take note of the hearing notices issued through e-mail and hence, he could not appear during the appellate proceedings. The Ld.AR further submitted that the assessment has also been completed on best judgment basis u/s.144 of the Act. Therefore, it was prayed in the interest of justice and equity, the issue may be restored to the files of the AO as a last opportunity for proper representation of his case.
The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the FAA and there is no
We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA was ex-parte, since the assessee did not respond to various notices issued. The Ld.AR submitted that the assessee was unaware of the income-tax proceedings and did not take note of the notices issued during the assessment and appellate proceedings. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the FAA and the AO. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO with a condition assessee pays a cost of Rs.10,000/- (Rupees ten thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.10,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
Order pronounced in the open court on 16th September, 2025 at Chennai.