Loading judgment…
Facts
The assessee's appeals were dismissed ex-parte by the First Appellate Authority (FAA) for non-compliance with hearing notices. The assessee argued that the notices were received on the e-filing portal and email, and due to being unaware of the faceless assessment process and the email id belonging to an erstwhile tax practitioner, they couldn't respond. Adjournment requests were filed for obtaining bank statements.
Held
The Tribunal noted that previous appeals with similar facts were remitted to the FAA. Exercising its discretion in the interest of justice and fair play, the Tribunal restored the matters to the FAA for fresh adjudication.
Key Issues
Whether the ex-parte dismissal of appeals by the FAA, without considering adjournment requests, was justified, especially in light of the assessee's claims of not receiving proper notice in the faceless assessment regime.
Sections Cited
250, 147, 271B, 271AAC(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘A’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI PADMAVATHY S
आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These three appeals filed by the assessee are directed against the three different orders of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi all dated 05.03.2025, passed under section 250 of the Income Tax Act, , 1281 & 1282/Chny/2025 :- 2 -: 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.
At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to various hearing notices issued from the office of the First Appellate Authority.
The Ld.AR submitted that the FAA had issued various notices and assessee has filed adjournment requests before the FAA requesting for further time to obtain the bank statements. However, the FAA without considering the adjournment request filed by the assessee, dismissed the appeals filed by the assessee by passing ex-parte orders. The Ld.AR further submitted that the reassessment order passed by the AO u/s.147 of the Act and the penalty orders u/s.271B and 271AAC(1) of the Act is also ex-parte since all the notices were issued on the e-filing portal account and through e- mail. The faceless assessment being a novel proceeding, the assessee was unaware of the same and could not respond to the various notices issued. Even the e-mail id to which the notices were sent was that of the erstwhile Tax Practitioner. Therefore, the assessee could not appear during assessment proceedings and hence, assessments were completed by passing ex-parte orders.
ITA Nos.1280, 1281 & 1282/Chny/2025 :- 3 -: The Ld.AR further submitted that in earlier years i.e., AYs 2008-09, 2009-10, 2012-13, 2014-15 & 2015-16 also (in to 1186 & 1193/CHNY/2025), since the appellate orders were ex-parte for non-compliance, the Tribunal has remitted back the issues to the files of the FAA. Therefore, it was prayed that in the interest of justice and equity, the issues may be restored to the files of the FAA for proper representation of his case.
The ld.DR submitted that adequate opportunities were provided from the office of the FAA & AO and there is no violation of principles of natural justice. Therefore, it was prayed the appeals of the assessee may be dismissed.
We have heard rival submissions and perused the materials on record. The proceedings before FAA was ex-parte, since the assessee did not respond to various notices issued instead filed adjournment requests only. The Ld.AR submitted that the assessee has filed adjournment requests before the FAA requesting for further time to obtain the bank statements. We also find that the Tribunal on similar facts in earlier years i.e., AYs 2008-09, 2009-10, 2012- 13, 2014-15 & 2015-16 has remitted the issues back to the file of the FAA. In light of the submissions of Ld.AR and in the interest of justice and fair play, we are of the view that the matter ought to , 1281 & 1282/Chny/2025 :- 4 -: be restored to the files of the FAA with a condition assessee pays a cost of Rs.15,000/- (Rupees fifteen thousand only). Therefore, subject to payment of Rs.15,000/- to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras, the matter is restored to the files of the FAA. The amount of Rs.15,000/- 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 FAA. Accordingly, the matter is remitted to the files of the FAA for fresh adjudication. The FAA 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.
In the result, the appeals filed by the assessee in to 1282/CHNY/2025 are allowed for statistical purposes.
Order pronounced in the open court on 23rd July, 2025 at Chennai.