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Facts
The assessee, a company, did not file its return of income for assessment year 2013-14. After being issued a notice u/s.148, the assessee filed a belated return. The AO treated the return as invalid, completed assessment u/s.144 by making additions, which was upheld by the CIT(A) who dismissed the assessee's appeal.
Held
The Tribunal noted that the CIT(A) passed the order without complete participation of the assessee and confirming an ex-parte order from the AO. To meet the ends of justice, the Tribunal remitted the matter back to the AO for a fresh assessment.
Key Issues
Whether the CIT(A) erred in upholding the ex-parte assessment order without considering the assessee's submissions and whether the assessee should be granted another opportunity for assessment.
Sections Cited
148, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI MANU KUMAR GIRI & SHRI S. R. RAGHUNATHA
आदेश /O R D E R
PER S. R. RAGHUNATHA, ACCOUNTANT MEMBER:
This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2013-14, vide order dated 19.12.2024.
:-2-: ITA. No: 115/Chny/2025 2. The brief facts are that the assessee is a company and had not filed its return of income for the assessment year 2013-14. Based on information available with the department the AO had reason to believe that the assessee had not disclosed certain income and hence the AO issued notice u/s.148 on 31.03.2021 and asking assessee to file the return of income. In response to further statutory notices issued by the AO, the assessee did not respond nor filed return of income. However, the assessee filed his return in response to notice u/s.148 on 09.03.2022, declaring an income of Rs.3,990/-.
Since, the assessee did not file the return of income within the time provided, the AO treated the same as invalid return and the assessment was completed by passing the order U/s.144 of the Act on 31.03.2022 by making the additions of Rs.30,11,385/- on account of Rent receipts of Rs.30,08,439/- and Rs.2,946/- i.e. 8% of Rs.36,830/- of contract receipts.
Aggrieved by the order of the AO, assessee preferred an appeal before the ld.CIT(A), NFAC.
The ld.CIT(A), NFAC, on perusal of the submission of the assessee, called for remand report from AO. The AO submitted that the assessee is a non-filer as well as non-compliant of all the notices. Further, the AO stated that the assessee has filed the return of income pursuant to notice u/s.148 of the Act, after the time provided. Further, the assessee
:-3-: ITA. No: 115/Chny/2025 furnished his reply to SCN on 31.03.2022, which was the last day for passing the order.
Further, the ld.CIT(A) observed that even during the appellate proceedings, the assessee was not responsive and has not put forward any evidence in support of the claims. Hence, the ld.CIT(A) dismissed the appeal of the assessee by passing an order dated 19.12.2024
Aggrieved by the order of the ld.CIT(A), NFAC the assessee preferred an appeal before us.
The ld.AR for the assessee submitted that the impugned order of the ld.CIT(A), has been passed without considering the any of the submissions. Further, the assessee has not participated before the AO also at the time of reassessment proceedings and hence prayed for one more opportunity before the AO in the interest of natural justice.
Per contra, the ld.DR submitted that the assessee is a company and non filer. The assessee is negligent in responding to the statutory notices and hence prayed for confirming the order of the ld.CIT(A).
We have heard both the parties and gone through the order of the CIT(A). It is noted that the CIT(A) has passed the impugned order without the complete participation of the assessee by confirming the exparte order
:-4-: ITA. No: 115/Chny/2025 of the AO. Therefore, to meet the ends of justice, we remit back the entire proceedings file of the AO for denovo assessment and direct the assessee to be diligent in assessment proceedings to produce all the required details and documents as and when called for without seeking unnecessary adjournments.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 06th June, 2025 at Chennai.