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Facts
The assessee's return declaring a loss was revised. The Assessing Officer (AO) completed an ex parte assessment under Section 144, making substantial additions due to non-compliance. The CIT(A) also passed an ex parte order dismissing the appeal.
Held
The Tribunal noted the assessee's failure to diligently pursue the appeal at various stages and the ex parte nature of previous orders. The appeal was restored to the CIT(A) for fresh adjudication on merits after providing an opportunity of hearing, with a nominal cost imposed on the assessee.
Key Issues
Whether the appeal should be restored for fresh adjudication on merits despite the assessee's non-appearance and ex parte orders passed by lower authorities?
Sections Cited
250, 143(2), 142(1), 144, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH KOLKATA
Before: Shri Sonjoy Sarma & Shri Rakesh Mishra
Assessment Year: 2018-19 Greenearth Resources and Projects Ltd………………....Appellant Room No.866, Todi Corner, 8th Floor, 32, Erza Street, Kol-1. [PAN: AABCN1393B] vs. National E-Assessment Centre, Kolkata….…..………………….…..... Respondent Appearances by: None appeared on behalf of the appellant. Shri P. N. Barnwal, CIT-DR, appeared on behalf of the Respondent. Date of concluding the hearing : July 30, 2025 Date of pronouncing the order : July 31, 2025 आदेश / ORDER
Per Sonjoy Sarma, Judicial Member:
This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre (NFAC), dated 19.07.2024 passed under section 250 of the Income-tax Act, 1961.
At the outset, it is noted that there is a delay of 32 days in filing the present appeal before the Tribunal. The assessee has filed a condonation petition explaining the reasons or such delay. After considering the submissions and materials on record, we are satisfied that there was reasonable cause for the delay in filing the appeal. Accordingly, the said delay is condoned, and the appeal is admitted for adjudication.
Brief facts of the case are that the return of income was filed declaring a loss of ₹2,87,83,157/-, which was subsequently revised declaring the same amount. The case was selected for complete scrutiny under CASS, and notices under section 143(2) and 142(1) of the Income-tax Act, 1961 (“the Act”) were issued. However, there was no compliance from the assessee. Hence, the Assessing Officer (AO) completed the assessment under section 144 of the Act. In the ex parte assessment order, the AO made the following additions: ₹8,54,540/- towards gains from business; ₹2,29,34,183/- under the head “Income from other sources” as per Form 26AS; ₹96,253/- being interest income shown in Form 26AS but not declared in return; ₹22,27,01,242/- shown as unsecured loans in the balance sheet, treated as unexplained under section 68 due to non-submission of confirmations; ₹8,07,09,232/- reported as other financial liabilities, also treated as unexplained under section 68.
Accordingly, the AO assessed the total income of the assessee at ₹43,29,19,940/-. 4. The assessee filed an appeal before the Ld. CIT(A). However, despite granting opportunities on three occasions, there was no Greenearth Resources and Projects Ltd appearance on behalf of the assessee. The Ld. CIT(A), therefore, passed an ex parte order dismissing the appeal and sustaining the additions made by the AO.
Aggrieved, the assessee has preferred this appeal before this Tribunal. It is noted from the record that even before this Tribunal, the assessee has not appeared on multiple occasions. The appeal has been filed by M/s. Rohit Tiwari & Co., Chartered Accountants and a power of attorney dated 05.12.2024 was submitted, yet no effective representation was made during the course of hearing.
Considering the above facts and after hearing the Ld. DR, we observe that the appeal before the CIT(A) was dismissed ex parte, without any discussion on merits. In the interest of justice and fair play, we are of the considered opinion that the matter deserves to be restored to the file of the CIT(A) for adjudication afresh on merits after giving due opportunity of hearing to the assessee. At the same time, we note that the assessee has failed to diligently pursue the appeal at multiple stages – before the AO, before the CIT(A), and now before the Tribunal. Therefore, we impose a nominal cost of ₹1,000/- on the assessee, which shall be deposited in the appropriate Government a/c before the next date of hearing before the CIT(A). A copy of the challan evidencing the payment shall be produced at that time. In view of the above, the impugned order of the Ld. CIT(A) is hereby set aside, and the matter is restored to his file for adjudication afresh on merits, in accordance with law, after affording proper and effective opportunity of hearing to the assessee.
Greenearth Resources and Projects Ltd 7. In the result, the appeal of the assessee is allowed for statistical purposes. Kolkata, the 31st July, 2025.