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Facts
The assessee filed its return declaring a loss, which was processed and later taken up for scrutiny. Due to non-compliance, the AO assessed the total income at Rs. 2,96,10,460/-. The assessee's appeal before the CIT(A) was dismissed for want of prosecution due to non-compliance.
Held
The Tribunal held that the interest of justice requires affording an opportunity to the assessee to place its case before the AO, especially since orders were passed behind the assessee's back. The appeal was restored to the AO for a fresh adjudication.
Key Issues
Whether the assessee should be given an opportunity to present its case before the AO and CIT(A) when the assessment and appeal decisions were made without full compliance and representation from the assessee.
Sections Cited
143(2)
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Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri Pradip Kumar Choubey & Shri Sanjay Awasthi]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)-NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 07.06.2024 for AY 2012-13.
Assessment Year: 2012-13 Highview Management Pvt. Ltd. 2. Brief facts of the case of the assessee are that the assessee filed its return of income declaring loss of Rs. 3,590/-, return was processed and later on taken up for scrutiny. Notices u/s 143(2) was issued, summons was sent to the director of the assessee company, since there was non-compliance on the part of the assessee, as a result of which, the AO has assessed total income at Rs. 2,96,10,460/-.
The said order has been challenged by the assessee before the Ld. CIT(A) wherein also the appeal of the assessee has been dismissed for want of prosecution as there was non-compliance on behalf of the assessee.
Being aggrieved and dissatisfied the assessee preferred an appeal.
The ld. Counsel of the assessee instead of arguing into the merit of the case has only submitted that the assessee has to be given an opportunity to place his case before the AO as the order passed by the AO as well as Ld. CIT(A) behind the back of the assessee. The Ld. Counsel filed several papers before the Tribunal which according to him are the essential piece of evidences to come into the right/ just conclusion of the case.
Contrary to that, the ld. D.R supports the impugned order but did not raise any objection if the case is remitted back to the file of AO for fresh adjudication.
Upon hearing the submission of the Counsel of the respective parties, we find that the AO has assessed total income when there was non-compliance on behalf of the assessee. Before the Ld. CIT(A) also, the assessee could not be able to place his case. The Ld. A.R undertakes that the assessee will co-operate in the proceedings if the appeal of the assessee is restored in the file of AO. A bunch of paper has been filed before this Tribunal by the assessee.
Going over the order passed by the AO as well as the Ld. CIT(A), the interest of justice demand to afford an opportunity to the assessee to place his case. Accordingly, the appeal of the assessee is hereby restored to the file of AO by setting aside the order passed by the AO confirmed by the Ld. CIT(A). The AO is directed to pass afresh order
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 25th February, 2025