RAMESH PRATHIBA,THANJAVUR vs. ITO, WARD-1,, THANJAVUR

Assessee further challenged the order of assessment u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act before the ld.CIT(A) who proceeded ex-parte and confirmed the order of the AO on merits.

Aggrieved, assessee is in appeal before us.

Before us, the ld. Counsel for assessee submitted that the CIT(A) has sent the two notices during Covid-19 period which were not received by the assessee, hence the assessee was prevented from appearance on the purported dates. 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 deduction u/s 54F. 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 this case and prayed for dismissal of appeal.

We do not concur with the submissions of Ld. Sr. DR. However, keeping in mind the Covid-19 pandemic and principle of natural justice and grant another opportunity of hearing to the assessee. We also find that assessee has not represented before the ld.CIT(A) despite notices for the reasons stated above. We also note that even before AO the order is in fact virtually ex-parte. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. AO for denovo assessment on merits after, affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate her case with all evidence and documents regarding claim of deduction u/s 54F, if any, forthwith without any fail, failing which Ld. AO shall be at liberty to proceed with the assessment proceedings on merits as per law. The ld. counsel, who appeared has assured the bench that he will ensure that the assessee will prosecute his case diligently. In this respect, the ld. counsel also filed undertaking on behalf of the assessee : 7. This is penalty appeal pursuant to the assessment order. Since, we have set aside and restored back the quantum assessment order to the file of Ld. AO for denovo assessment on merits, therefore, the penalty order is also set aside being consequential.