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Facts
The assessee's appeal before the CIT(A) was dismissed ex-parte due to non-compliance with notices, following a best judgment assessment by the AO under Section 144. The assessee's requests for adjournments before the CIT(A) were rejected, leading to the impugned order without a hearing on merits.
Held
The Tribunal, in the interest of justice, remitted the matter back to the Assessing Officer for fresh adjudication. The AO is directed to provide a reasonable opportunity of hearing to the assessee, who in turn must cooperate and avoid unnecessary adjournments.
Key Issues
Whether an assessee, whose appeal was dismissed ex-parte by the CIT(A) and whose case was based on a best judgment assessment by the AO, should be granted another opportunity to present their case on merits.
Sections Cited
250, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
आयकर अपील�य अ�धकरण, ‘बी’ �यायपीठ, चे�न IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI �ी जॉज� जॉज� के, उपा�य� एवं �ी एस.आर.रघुनाथा, लेखा सद�य के सम� BEFORE SHRI GEORGE GEORGE K, VICE PRESIDENT AND SHRI S.R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 3132/CHNY/2024 िनधा�रण वष�/Assessment Year: 2018-19 M/s. Kay Yes Kay Trade Links Assistant Commissioner of Private Limited, Vs. Income Tax #48, Elephant Gate Street, Corporate Ward-4(3) Sowcarpet, Chennai. Chennai-600 079. PAN: AAECK-5197-P (अपीलाथ�/Appellant) (��यथ�/Respondent) अपीलाथ� क� ओर से/Appellant by : Mr. Bimlendu Bhushan,CA ��यथ� क� ओर से/Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई क� तारीख/Date of Hearing : 25.02.2025 घोषणा क� तारीख/Date of Pronouncement : 26.02.2025 आदेश /O R D E R PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against CIT(A)/NFAC’s order dated 14.10.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2018-19.
At the very outset, we notice that the appeal of the assessee has been dismissed ex-parte qua assessee. In response to seven hearing notices and show cause notice issued from the office of the AO, the assessee has not complied with notices. Before the First Appellate Authority also the assessee has not furnished its submissions or any documentary evidences. Consequently, the appeal of the assessee was dismissed ex-parte qua assessee.
The ld.AR stated that the assessee twice sought for adjournment applications on 10.09.2024 & 14.10.2024 before the CIT(A). However, rejecting the same the First Appellate Authority passed the impugned order without considering the appeal on merits. It was submitted by the Ld.AR, in the interest of justice and equity, the assessee may be provided with one more opportunity to represent its case before the AO, since it was a best judgment assessment u/s.144 of the Act.
The ld.DR supported the order of the AO and the CIT(A).
We have heard rival submissions and perused the materials on record. The Office of the First Appellate Authority had issued five hearing notices. It was the contention of the ld.AR that though the assessee had sought for adjournments twice on 10.09.2024 and 14.10.2024 the same were rejected and CIT(A) passed the impugned order. Therefore, in the interest of justice and fair play, we are of the view that one more opportunity should be provided to the assessee to represent his 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 26th February, 2025.