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Facts
The assessee's appeal was directed against the order of the CIT(A) which was passed ex-parte. The assessment was completed on a best judgment basis after the assessee failed to respond to notices, leading to non-cooperation in assessment and appellate proceedings.
Held
The Tribunal deprecated the assessee's non-chalant attitude but, in the interest of justice, decided to provide one more opportunity to represent the case. The matter was remitted to the AO for fresh adjudication with a direction for reasonable opportunity of hearing.
Key Issues
Whether the assessee should be granted another opportunity for representation when the CIT(A) passed an ex-parte order due to non-compliance with notices.
Sections Cited
250, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND
आदेश /O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against the order of CIT(A), National Faceless Appeal Centre, Delhi dated 03.12.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017- 18.
2. At the very outset, we notice that the assessment has been completed on best judgment basis u/s.144 of the Act on 11.10.2019. Further the CIT(A)’s order is also ex-parte, since there was no compliance from the assessee to the three notices issued from the office of the First Appellate Authority.
The Ld.AR submitted that the assessee is an individual doing retail trading in agro products in small level. He further submitted that the assessee is not a computer literate and is not well versed with e-proceedings and faceless system adopted by the Department. Hence, the assessee failed to take note of hearing notices in the ITBA portal, resulting in non-cooperation of assessee during the assessment proceedings and appellate proceedings. 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 CIT(A) and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed.
5. We have heard rival submissions and perused the materials on record. Since there was no response by the assessee to the notices issued, the CIT(A) passed ex-parte order. We strongly deprecate the nonchalant attitude of the assessee. However, in the interest of justice and equity, we are of the view that assessee ought to be provided with one more opportunity to represent its case. Since the proceedings before the AO is also best judgment assessment, we deem it appropriate to restore the matter 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 22nd April, 2025 at Chennai.