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Facts
The assessee filed an appeal against the order of the CIT(A) which upheld the AO's order disallowing a deduction claimed under Section 80P. The CIT(A) dismissed the appeal because the assessee did not respond to hearing notices or provide evidence.
Held
The Tribunal set aside the impugned order and restored the appeal to the CIT(A) for a fresh hearing on merits, subject to the assessee paying a cost of Rs. 10,000/-.
Key Issues
Whether the assessee should be granted another opportunity to prosecute the appeal before the CIT(A) despite not responding to previous notices, and if so, under what conditions.
Sections Cited
147, 80P
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Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: HON’BLE SHRI MANU KUMAR GIRI & HON’BLE SHRI AMITABH SHUKLA
This appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals) (NFAC) Delhi [CIT(A)] dated 12.02.2025 for Assessment Year 2018-19.
Brief facts of the case are that the assessee instituted appeal before the ld.CIT(A) against the order u/s 147 of the Act wherein AO disallowed the deduction claimed u/s 80P of the Act. However, the ld. CIT(A) uphold the order of AO and dismissed the appeal on the ground that the assessee has neither responded to the hearing notices nor filed any evidence to support the grounds raised in the appeal. Aggrieved, assessee is in appeal before us.
3. Before the ld. Counsel for assessee submitted that the assessee inadvertently not noticed the hearing notices sent. He further submits that the assessee may be given an opportunity to prosecute the appeal before the ld. CIT(A).The ld.DR relied upon the order of the ld.CIT(A) and pleaded for the dismissal of the appeal.
4. Though we some extent concur with the submissions of Ld.DR Ms. Anitha, Addl. CIT however, keeping in mind the reasons furnished and substantial justice, grant one more opportunity to the assesee to prosecute the appeal on merits. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for hearing on merits subject to cost of Rs.10,000/- (Rupees ten thousand) which shall be deposited by the assessee within 30 days from the date of receipt of this order to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the same will be furnished by the Assessee before Ld.CIT(A) whose shall proceed for hearing the appeal on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents, if any, forthwith
Page - 2 - of 3 without any fail, failing which Ld.CIT(A) shall be at liberty to proceed with the appeal proceedings on merits as per law. 5. In the result, appeal filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 30th day of June, 2025 at Chennai.
Sd/- Sd/- (अमिताभ शुक्ला) ( िनु कुिार गिरर) ( Amitabh Shukla ) ( Manu Kumar Giri) लेखा सदस्य / Accountant Member न्याययक सदस्य/ Judicial Member चेन्नई/Chennai, धदनांक/Dated: 30th , June-2025. KB/- आदेश की प्रतितिति अग्रेतिि/Copy to: 1. अिीिार्थी/Appellant 2. प्रत्यर्थी/Respondent 3. आयकर आयुक्त/CIT - 4. तिभागीय प्रतितिति/DR 5. गार्ड फाईि/GF
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