Loading judgment…
Facts
The assessee, a Housing Society, filed its return for AY 2020-21, which was revised. The case was selected for limited scrutiny. Statutory notices were served, but the assessee failed to comply with the last show cause notice, leading to a best judgment assessment and additions by the Assessing Officer. The additions were confirmed by the CIT(A) due to non-compliance.
Held
The Tribunal acknowledged the assessee's request for one more opportunity due to ex-parte proceedings and failure to furnish details. Considering the facts and circumstances, the Tribunal decided to remit the issues to the CIT(A) for necessary adjudication, providing the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the assessee should be granted another opportunity to present its case before the CIT(A) when the original order was ex-parte due to non-compliance?
Sections Cited
250, 143(4), 144B, 143(2), 142(1), 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “SMC”, PUNE
Before: DR.MANISH BORAD
Assessee by : Shri Pratik Sandbhor (Through Virtual) Shri S. Sadananda Singh Revenue by : Date of hearing : 17.06.2025 Date of pronouncement : 23.06.2025 आदेश / ORDER
This appeal filed by the assessee pertaining to the assessment year 2020-21 is directed against the order dated 07.03.2024 of National Faceless Appeal Centre, Delhi passed u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) arising out of the Assessment Order dated 19.09.2022 passed u/s.143(4) r.w.s.144B of the Act.
At the outset, Ld. Counsel for the assessee stated that the impugned order is exparte and assessee failed to furnish necessary details, therefore, prayed for providing one more opportunity to go before ld.CIT(A) and file necessary details in order to plead the grounds of appeal raised against the addition made by the Assessing Officer. Ld. Departmental Representative did not oppose this request.
I have heard the rival contentions and perused the record placed before me. I notice that the assessee is a Housing Society Life Montage Coop Housing Society Ltd. and had furnished the return of income for A.Y. 2020-21 on 10.01.2021 which was subsequently revised on 31.03.2021. Case selected for limited scrutiny for the reason “Deductions from Income from Other Sources. Statutory notices u/s.143(2) and 142(1) were validly served and there were some online responses from assessee’s side but the last show cause notice dated 29.08.2022 remained to be complied by the assessee. As a result ld. Assessing Officer framed best judgment assessment and made certain additions. Additions challenged by the assessee before ld.CIT(A) but thereafter for non-compliance the additions made by ld.AO have been confirmed. Under the given facts and circumstances and also considering the prayer made by ld. Counsel for the assessee, I deem it proper to give one more opportunity to the assessee and remit back the issues raised on merit to the file of ld.CIT(A) for necessary adjudication. Needless to say that ld.CIT(A) shall give reasonable opportunity of being heard to the assessee and after considering the submissions of the assessee pass a speaking order as contemplated u/s.250(6) of the Act. Impugned order is set aside and the effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced on this 23rd day of June, 2025.