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Facts
The appeal was filed by the assessee for Assessment Year 2013-14 against an ex-parte assessment order passed by the AO under section 144 read with section 147 of the Act, which was also upheld by the CIT(A). The assessee contended that they were unable to represent their case before the lower authorities.
Held
The Tribunal, considering the principles of natural justice and the ex-parte nature of the lower authorities' orders, restored the matter back to the Assessing Officer for a fresh assessment. The assessee was directed to present and prove their case effectively.
Key Issues
Whether the ex-parte assessment order passed by the AO and upheld by the CIT(A) should be set aside on the grounds of natural justice, and the matter should be remanded for a fresh assessment.
Sections Cited
144, 147
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Income Tax Appellate Tribunal, “SMC” BENCH, CHANDIGARH
आदेश / O R D E R
Aforesaid appeal by assessee for Assessment Year (AY) 2013- 14 arises out of an order of learned Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 04-12-2024 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 read with Section 147 of the Act on 23-09-2021. The registry has noted delay of 8 days in the appeal which stands condoned. The only prayer of Ld. AR is to restore the matter back to the file of Ld. AO since the orders of lower authorities are ex-parte orders. The Ld. AR stated that the assessee is in a position to substantiate its case if another opportunity is granted to the assessee. The Ld. Sr. DR opposed any interference in the impugned order.
In the assessment order, Ld. AO has assessee income of Rs.40.01 Lacs for cash deposits and bank interest since the assessee fail to make any representation therein. The Ld. CIT(A) dismissed the appeal for the same very reasons. Aggrieved, the assessee is in further appeal before Tribunal.
Keeping in mind the principles of natural justice and considering the background of the assessee, I deem it fit to accept the prayer of Ld. AR. Accordingly, the assessment is restored back to Ld. AO for de novo assessment with a direction to the assessee to plead and prove its case forthwith.
The appeal stands allowed for statistical purposes. Order pronounced on 25th November, 2025.