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Facts
The assessee's appeal was directed against an order of the CIT(A) which was passed ex-parte. The original assessment was also completed on a best judgment basis as the assessee failed to respond to notices.
Held
The Tribunal noted that the proceedings before both the AO and CIT(A) were ex-parte due to the assessee's non-compliance. While deprecating the assessee's attitude, the Tribunal, in the interest of justice, restored the matter to the AO for fresh adjudication.
Key Issues
Whether the ex-parte order passed by the CIT(A) and the best judgment assessment by the AO should be set aside and the case remanded for fresh adjudication?
Sections Cited
250, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ (SMC
Before: SHRI GEORGE GEORGE K
आदेश/ O R D E R
This 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 14.02.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18.
2 -: 2. At the very outset, I notice that the order passed by the First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to the various notices issued from the office of the First Appellate Authority. Further, I also notice that the assessment has been completed on best judgment assessment u/s. 144 of the Act.
The Ld.AR for the assessee submitted that the order passed by the FAA is ex-parte and 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 violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed.
I have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the CIT(A) was ex-parte, since the assessee did not respond to various notices issued. The assessee has not produced any documents 3 -: or evidences in support of the grounds raised before the FAA. I 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, I’m of the view that the matter ought to be restored to the files of 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.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 26th June, 2025 at Chennai.