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Facts
The assessee failed to respond to hearing notices issued by the CIT(A), leading to an ex-parte order. The assessee's appeal was dismissed by the CIT(A) for non-prosecution without considering the merits. The assessee claims non-receipt of hearing notices prevented them from submitting supporting documents.
Held
The Tribunal noted that the CIT(A) dismissed the appeal for non-prosecution without addressing the merits. In the interest of fairness, the issues were restored to the file of the CIT(A) for a denovo adjudication, with a direction to provide the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal for non-prosecution without considering the merits, when the assessee claimed non-receipt of hearing notices.
Sections Cited
250, 147, 144B, 148, 250(6)
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Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
आदेश / ORDER
The captioned appeal at the instance of assessee pertaining to A.Y. 2018-19 is directed against the order dated 10.10.2024 of National Faceless Appeal Centre(NFAC), Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of Assessment Order dated 18.12.2023 passed u/s.147 r.w.s144B of the Act.
Assessee has raised following solitary ground which reads as follows :
“I had filled Appeal against order of AO but I failed to received any of the notice for appeal hearing and hence Ex-party order was passed by Respected Commissioner of appeal. I had all the required supporting documents for my appeal but I failed submit this documents & proof in front of commissioner of appeal as I did not received any appeal hearing notice so I request your Lordship to give me a chance to submit all this documents in front of you or in front of AO or Commissioner of appeal by reverting back the case.”
At the outset, Ld. Counsel for the assessee submitted that assessee failed to respond to the notices of hearing given by ld.CIT(A) resulting into an exparte order and prayed for restoring the issues back to the file of ld.CIT(A) for denovo adjudication. Ld. Departmental Representative did not oppose this request.
I have heard the rival contentions and perused the record. I observe that the assessee is an individual and has been assessed for A.Y. 2018-19 u/s.147 r.w.s.144B of the Act. Against the income declared in the return filed in response to notice u/s.148 of the Act at Rs.4,26,170/-, income has been assessed at Rs.32,37,700/- and certain additions have been made. Though the assessee has filed appeal before ld.CIT(A) but failed to respond on the given dates of hearing. Further, I notice that ld.CIT(A) has summarily dismissed the appeal for non- prosecution, without dealing with merits of the case.
Considering the fact that assessee could not substantiate its case by any representation adducing cogent evidences, I am of the view that in the given facts and circumstances of the instant appeal and in all fairness the issues raised on merits requires to be restored to the file of ld.CIT(A) for necessary adjudication. Needless to mention that ld.CIT(A) in the course of set-aside proceedings shall afford a reasonable opportunity of being heard to the assessee and after considering the submissions/evidences filed by the assessee shall pass a speaking order as contemplated u/s.250(6) of the Act in light of judgment of Hon’ble Bombay High Court in the case of PCIT (C) vs. Premkumar Arjundas Luthra (HUF) (2017) 297 CTR 614 (Bombay). Assessee is directed to update email id and contact detail on ITBA portal. Assessee is also directed to remain vigilant and not to take adjournment unless otherwise required for reasonable cause. Impugned order is set aside and the effective ground of appeal raised by the assessee is allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 14th day of July, 2025.