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Facts
The assessee, Dhavel Builders, filed an appeal against the order of the Commissioner of Income Tax(Appeals) for Assessment Year 2015-16. The assessee's counsel stated that due to unavoidable reasons, the assessee could not appear before the CIT(A)/NFAC.
Held
The Tribunal held that the assessee was given multiple opportunities but failed to respond to hearing notices. However, considering the recent launch of Faceless Proceedings and potential lack of familiarity with the technical aspects, the Tribunal decided to give one more opportunity to the assessee.
Key Issues
Whether the assessee should be given another opportunity for adjudication before the CIT(A)/NFAC, especially considering the issues with Faceless Proceedings and communication.
Sections Cited
69A, 115BBE, 148, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PUNE BENCHES “A” :: PUNE
Before: DR.MANISH BORAD & SHRI VINAY BHAMORE
Assessment Year: 2015-16 Dhavel Builders, V The Income Tax Officer, 470, Dattatraya Nivas, s Ward-12(1), Pune. Kumthekar Road, Sadashiv Peth, Pune – 411030. PAN: AAHFD8228J Appellant / Assessee Respondent / Revenue Assessee by Shri Sarvesh Kandelwal – AR Revenue by Shri Ramnath P Murkunde – DR Date of hearing 17/02/2025 Date of pronouncement 20/02/2025 आदेश/ ORDER
PER DR. MANISH BORAD, AM:
This is an appeal filed by the Assessee against the order of ld.Commissioner of Income Tax(Appeals)[NFAC] for Assessment Year 2015-16 dated 30.09.2024 passed u/sec.250 of the Income tax Act, 1961. The Assessee has raised the following grounds of appeal :
1. On the facts and circumstances of the case and the provisions of the Act it will be held that the assessee be given one more opportunity and his case be heard on merit. Just and proper relief be granted to the assessee.
On the facts and circumstances of the case and the provisions of the Act it will be held that the income is not assessable u/s 69A. Consequently, the income tax is not to be computed u/s 115BBE. The income be assessed as regular business income attracting regular rates of tax applicable to the assessee. Just and proper relief be granted to the assessee.
On facts & circumstances prevailing in the case & as per provisions of the Act it be held that income for AY 2015-16 should have been assessed at Rs. 91,87,816/-which is as per the accounts & tax audit report filed prior to the receipt of notice u/s 148. Just & proper relief be granted to the assessee on this score.
4. The appellant prays to be allowed to add, to rectify modify, amend, delete, and raise any grounds of appeal at the time of hearing.”
2. At the outset of hearing, ld.Counsel for the assessee stated that for unavoidable reasons, assessee could not appear before the ld.CIT(A)/NFAC and since the assessee has a prima-facie good case, matter may please be restored to ld.CIT(A) for afresh adjudication.
3. On the other hand, ld.DR for the revenue relied on the order of Lower Authorities.
We have heard rival contentions and perused the record placed before us. We observe that the assessee was given multiple opportunities by ld.CIT(A) to plead its grounds of appeal. However, assessee failed to respond to the notice of hearing dated 10.09.2024, 19.09.2024 and 24.09.2024 through ITBA Portal. The assessee has also furnished an Affidavit mentioning the reasons for non-appearance which are mainly on account of notices having been sent on the email id which was not in regular use by the assessee. Considering the fact that Faceless Proceedings have been launched recently and there are some assessees’ who are not well-versed with the technical aspects of New Faceless Scheme and even though ld.CIT(A) has dealt the issue on the merits of the case, however, the finding arrived by the ld.CIT(A) are without hearing of the assessee.
We therefore, in the interest of justice and being fair to both the parties deem it appropriate to give one more opportunity to the assessee and restore the issue raised on merit to ld.CIT(A)/NFAC for afresh adjudication to be carried out in accordance with Law. The Assessee is directed to provide correct Email-Id to the Department for getting notices through ITBA portal. Assessee is also directed to remain vigilant and not to seek adjournment unless otherwise required. Accordingly, grounds of appeals raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 20th February, 2025.