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Facts
The assessee's appeal for AY 2016-17 arose from an order of the CIT(A) which upheld an assessment framed by the AO under Section 143(3). The assessee had failed to appear during the first appellate proceedings, and their appeal was dismissed.
Held
The Tribunal admitted the appeal, acknowledging the assessee's negligence but considering the facts of the case. The assessment was restored to the AO for fresh adjudication, with a direction for the assessee to substantiate their case.
Key Issues
Whether the appeal should be admitted despite the assessee's failure to appear in prior proceedings, and whether the assessment needs to be restored for fresh adjudication.
Sections Cited
143(3), 56(2)(vii)(b)(ii), 55A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH, CHENNAI
Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM
आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member)
Aforesaid appeal by assessee for Assessment Year (AY) 2016-17 arises out of the order of learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] dated 20-06-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 09-11-2018. The Registry has noted delay of 65 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of the assessee. Upon perusal of para-4 of impugned order, it could be noted that the assessee has failed to appear during first appellate proceedings. The Ld. AR has pleaded for admission of appeal and also prayed for restoring the appeal back to the file of lower authorities. The same has been opposed by revenue.
In the assessment order, Ld. AO made addition u/s 56(2)(vii)(b)(ii) for Rs.96.54 Lacs considering the fact that the assessee purchased certain property for a consideration which was less than stamp duty valuation. During appellate proceedings, the assessee stated that Ld. AO did not refer valuation to DVO u/s 55A. Since no such request was made by the assessee to Ld. AO and no new material was produced during appellate proceedings, the appeal was dismissed. Aggrieved, the assessee is in further appeal before us.
Though the assessee has remained negligent, however, considering the facts of the case, we admit the appeal and restore the assessment back to the file of Ld. AO for fresh adjudication with a direction to the assessee to substantiate its case.
The appeal stand allowed for statistical purposes. Order pronounced on 3rd February, 2025