Loading judgment…
Facts
The assessee's appeal was against an ex-parte order by the Ld.CIT(A). The assessee claimed that notices from the Ld.CIT(A)/NFAC went into their SPAM account, leading to their unawareness of the proceedings.
Held
The Tribunal noted that both the Ld.CIT(A) and AO passed ex-parte orders without delving into the merits of the case. The Tribunal decided to set aside the impugned order and restore the assessment back to the AO.
Key Issues
Whether the ex-parte orders passed by the lower authorities are sustainable and if the assessee should be granted another opportunity for assessment.
Sections Cited
144, 250
AI-generated summary — verify with the full judgment below
Detected automatically from the text. The count shows how many other judgments on BharatTax rely on the same authority.
Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI MANOJ KUMAR AGGARWAL
आदेश / O R D E R
PER ABY T. VARKEY, JM:
1. This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Appeals)/NFAC, (hereinafter referred to as “the Ld.CIT(A)”), Delhi, dated 18.11.2024 for the Assessment Year (hereinafter referred to as "AY”) 2013-14.
At the outset, it was brought to our notice that the impugned order of the Ld.CIT(A) is an ex parte order. Further, it was also brought to our notice that the AO has passed the best judgment assessment u/s.144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act‘). Thus, according to the Ld.AR, both the authorities have passed ex parte order qua assessee. According to the assessee, notices issued by the Ld.CIT(A)/NFAC had gone into the ‘SPAM’ account, therefore, the assessee was not aware of the existence of such notices issued to him. In the absence of any response from assessee to his notices, the Ld.CIT(A) has confirmed huge addition made by the AO in ex parte proceedings.
Therefore, the Ld.AR pleaded for one more opportunity to be granted for it and has undertaken to appear and present all the relevant documents before the AO by citing the decision of the Hon’ble Supreme Court in the case of TIN Box Co. v. CIT reported in [2001] 249 ITR 216 (SC).
Per contra, the Ld.DR doesn’t want us to give one more innings to the assessee.
Having heard both the parties and after perusing the records, we note that the impugned order is an ex parte order since the assessee didn’t respond to the Ld.CIT(A)’s three (3) notices. Therefore, the Ld.CIT(A) has confirmed the action of the AO without going into the merits of the grounds raised by the assessee as contemplated under sub- section (6) of section 250 of the Act. Therefore, we don’t countenance the impugned action of the Ld.CIT(A) and are inclined to set aside the impugned order. Further, taking note of the fact that the AO has also passed an ex parte order, we are of the view that one more opportunity need to be granted to the assessee as directed by the Hon’ble Supreme Court in the case of TIN Box Co. (supra).
In the light of the aforesaid facts, we restore the assessment back to the file of the AO with a direction to de novo assess the income of the assessee. The assessee is directed to file relevant documents to substantiate the queries raised by him. The Ld.AR of the assessee has given e-mail ID his to avoid ex parte actions which is noted as: advocatessk1953@gmail.com. In this regard, a cost of Rs.10,000/- is imposed which the assessee should remit to the State Legal Aid Authority, Hon’ble Madras High Court, and produce necessary proof of depositing of the same before the AO and thereafter, the AO need to give three opportunities to the assessee and in case, if the assessee fails to furnish the documents/written submissions within the time given, then the AO is at liberty to pass order in accordance to law. The aforesaid id may also be considered by the AO while issuing notices to assessee to ensure participation during assessment proceedings.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on the 04th day of June, 2025, in Chennai.