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Facts
The assessee's appeal was dismissed ex-parte by the CIT(A) for non-compliance with hearing notices. The assessee's representative argued for a chance to represent their case, citing the ex-parte nature of the original assessment as well.
Held
The Tribunal, while deprecating the assessee's attitude, decided to provide one more opportunity for the assessee to represent their case. The matter was remitted to the AO for fresh adjudication.
Key Issues
Whether the assessee should be given another opportunity to present their case before the AO and CIT(A) after being dismissed ex-parte.
Sections Cited
250, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI S.R. RAGHUNATHA
O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee trust is directed against CIT(A)/NFAC’s order dated 14.06.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2015-16.
At the very outset, we notice that the appeal of the assessee has been dismissed ex-parte qua assessee. In response to four hearing First Appellate Authority, 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 submitted that the assessment order passed by the AO is also ex-parte qua assessee. The Ld.AR further submitted that the reasons for non-appearance before the AO has been given in the statement of facts filed before the CIT(A) and the order of CIT(A) is also ex-parte qua assessee. 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 his 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 CIT(A) had issued four hearing notices. 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 27th January, 2025 at Chennai.