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Facts
The assessee filed a stay petition requesting to stay an outstanding demand of Rs.1,50,24,243/- for AY 2018-19. The assessee claimed that the First Appellate Authority (FAA) passed an ex-parte order without considering their request for adjournment and without a speaking order.
Held
The Tribunal noted that the FAA's order was ex-parte due to the assessee's non-compliance. While deprecating the assessee's attitude, in the interest of justice, the matter was remitted to the FAA for fresh adjudication with a reasonable opportunity of hearing.
Key Issues
Whether the appeal should be allowed and the matter remitted to the FAA for fresh adjudication given the ex-parte order and alleged non-compliance by the assessee.
Sections Cited
250
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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:
The assessee has filed this stay petition requesting for stay of outstanding demand of Rs.1,50,24,243/- for the assessment year 2018-19.
When this stay petition was called for hearing, the Ld.AR for the assessee stated that assessee had submitted partial information and 2 S.A No. 58/Chny/2 filed evidences. The AO had issued several notices calling for various details and the assessee had requested for adjournment for the final notice issued by the AO. However, the AO had passed the assessment order without considering the adjournment request of the assessee. The Ld.AR further submitted that the order passed by the First Appellate Authority (FAA) is ex-parte and there is no speaking order on merits.
We noted that the assessee is non-compliant before the First Appellate Authority (FAA) and the FAA also passed the appellate order ex-parte by a non-speaking order. Since the order of FAA is ex-parte, we are adjudicating the appeal along with the stay petition.
4. The appeal filed at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, dated 21.05.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.
At the very outset, we notice that the order of First Appellate Authority (FAA) is ex-parte, since there was no compliance from the
The Ld.AR submitted that the hearing notices issued from the office of the First Appellate Authority (FAA) were uploaded in the ITBA portal but not sent to the email id or there is no real time alert. Therefore, the assessee was unaware of the hearing notices and hence, he could not appear during the appellate proceedings. Hence, it was prayed in the interest of justice and equity, the issue may be restored to the files of the FAA as a last opportunity for proper representation of his case.
The ld.DR submitted that adequate opportunities were provided from the office of the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal 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. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the FAA. However, in the interest of justice
4 S.A No. 58/Chny/2 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.
Since we have heard the appeal and decided, the Stay petition becomes infructuous and hence, dismissed.
In the result, the appeal filed by the assessee is allowed for statistical purposes and the stay application filed by the assessee is dismissed.
Order pronounced in the open court on 27th June, 2025 at Chennai.