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Facts
The assessee filed returns for Assessment Years 2014-15 and 2017-18. The case was selected for scrutiny, and a survey was conducted. The Assessing Officer (AO) reopened the case under Section 147 and completed the assessment under Section 144 r.w.s. 147 on a best judgment basis due to no response from the assessee.
Held
The Tribunal condoned the delay in filing the appeal due to the Covid-19 pandemic. While acknowledging the assessee's submission of voluminous documents, the Tribunal noted the ex-parte nature of the assessment orders. Therefore, the orders were set aside, and the appeals were restored to the AO for denovo assessment.
Key Issues
Whether the ex-parte assessment order passed during the Covid-19 pandemic, without proper opportunity of hearing, is sustainable? Whether to provide another opportunity for the assessee to present evidence and documents before the AO.
Sections Cited
143(3), 133A, 147, 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
together and are disposed of by this common order. We take up the for AY 2014-15 for adjudication as lead year.
The registry has noted delay of 17 days in filing the appeal in for AY 2014-15. Considering the reasons stated in the affidavits by Assessee, we condone the delay and treat the reasons as ‘sufficient cause’ and admit the appeal for adjudication.
ITA No.104/Chny/2025 (A.Y 2014-15):
Brief facts are as under:
The assessee is an individual filed his return of income on 30.03.2015 admitting income of Rs.39,88,950/-. The case was selected for scrutiny and assessment was completed u/s.143(3) of the Act on 30.12.2016 . Subsequently, a survey u/s.133A of the Act was carried out on 11.02.2020 in the business premises of the assessee. Consequently, case was reopened u/s.147 of the Act and notice u/s. 148 was issued to the assessee on 24.03.2020. Since there was no response from the assessee, the AO has completed the assessment u/s.144 r.w.s. 147 of the Act on best judgement basis.
Assessee further challenged order of assessment u/s. 144 r.w.s 147 of the Act before the ld.CIT(A) who proceeded ex-parte and dismissed appeal of the assessee. Aggrieved by the CIT(A) order, assessee is in further appeal before us.
Before us, the ld. Counsel for assessee submitted that the assessment order was passed during the Covid-19 period and hence, the assessee could not respond to the notices. The Ld.AR has placed on record voluminous of documents in order to justify the claim of the assessee from page 1 to 136 of the paper book as per index, which reads as under:-
Therefore, he prayed that the assessee may be provided an adequate and proper representation time to file evidence and documents, if any, to substantiate his explanation regarding claim of capital gain etc before the AO. The ld.DR stated that the assessee is habitual defaulter in appearing before the appellate authority hence no lenient view is to be taken in these cases and prayed for dismissal of the both appeals.
Though we concur with the submissions of Ld. Sr. DR however, keeping in mind Covid-19 pandemic and the principle of natural justice, grant another opportunity of hearing to the assessee. We also did not find notice of hearing given to assessee to appear to represent before the ld.CIT(A). We also note that even before AO the order is ex-parte. Accordingly, the impugned orders are set aside and the appeals are restored back to the file of Ld. AO for denovo assessments on merits after affording proper opportunity of hearing to the assessee subject to cost of Rs.5,000/- each appeal which shall be deposited by the assessee within 30 days from the date of receipt of these orders to ‘Tamil Nadu State Legal Services Authority’ at Hon’ble High Court of Madras. The proof of the cost deposits in both cases will be furnished by the Assessee before Ld.AO whose shall proceed for denovo assessments after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case with all evidence and documents regarding capital gain etc, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the both assessment proceedings on merits as per law. The ld. counsel, who appeared also assured the bench that he will ensure that the assessee will prosecute these cases diligently.
It is admitted position that facts as well as issues in these two
In the result, both the appeals filed by the assessee are allowed for statistical purpose.
Order pronounced in the open court on 8th April, 2025