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Facts
The assessee declared a total income of Rs.2,94,270/-, but the assessment was completed at Rs.22,36,300/- with an addition of Rs.19,67,333/-. A penalty of Rs.5,09,000/- was imposed under Section 271(1)(c) for alleged concealment of income. The assessee's appeal before the NFAC was dismissed for non-compliance.
Held
The Tribunal observed that the NFAC's order was ex-parte. Considering the peculiar facts, the Tribunal deemed it fit to grant the assessee one more opportunity to present their case before the NFAC.
Key Issues
Whether the NFAC's ex-parte dismissal of the appeal was justified, and whether the assessee should be granted another opportunity to be heard on merits.
Sections Cited
271(1)(c)
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Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
Before: SHRI. SUDHANSHU SRIVASTAVA & SHRI ANADEE NATH MISSHRA
This appeal has been preferred by the assessee against order dated 14.05.2024, passed by the National Faceless Appeal Centre, Delhi (NFAC) for Assessment Year 2016-17.
The brief facts of the case are that the assessee was working as Zila Basic Shiksha Adhikari, Bareilly and was earning income from salary and interest from Bank. During the year under consideration, the assessee had filed return of income, declaring a total income of Rs.2,94,270/- and the assessment was completed at a total income of Rs.22,36,300/- after making addition of Rs.19,67,333/-. The AO, vide separate order dated 29.05.2019, passed under section 271(1)(c) of the Act, held that the assessee had concealed the particulars of his income amounting to Rs.19,67,33/- and accordingly sought to evade tax to the tune of Rs.5,08,874/-. The AO, therefore, imposed a penalty of Rs.5,09,000/- under section 271(1)(c) of the Act.
Aggrieved, the assessee preferred an appeal before the NFAC. However, the appeal before the NFAC came to be dismissed for the reason of non-compliance by the Assessee.
Now, the assessee has approached this Tribunal challenging the dismissal of its appeal by the NFAC by raising the following grounds of appeal:
1. BECAUSE, on the facts and in the circumstances of the case, additions by the Ld. AO as confirmed by the CI'T(A) is bad in law, the order of CIT(A) deserves to be set aside.
2. BECAUSE, on the facts and in the circumstances of the case, the Ld. Assessing Officer has imposed the penalty without giving opportunity of being heard which is against the principal of natural justice, renders the order of Ld. CIT(A) bad in law and deserves to be quashed.
3. Because, on the facts and under the circumstances of the case it is the settled principal of law that where no appeal has been filed against the assessment order and due taxes were paid then penalty should not be imposed renders order of penalty passed by Ld. AO and confirmed by Ld. CIT(A) be quashed.
Pankaj Kumar Gupta Vs ITO, ITAT Lucknow 4. The humble assessee, craves for leave to add/amend any other ground with the prior permission of the Hon'ble Tribunal. 5. None was present for the assessee when the appeal was called out for hearing. However, looking into the facts of the case, we proceed to adjudicate the appeal ex-parte qua the assessee.
Since the order passed by NFAC was an ex-parte order, the ld. Senior D.R. had no objection to the restoration of appeal to the NFAC.
We have heard the ld. Senior Departmental Representative and have also perused the material on record. It is evident that the order passed by the NFAC is an ex-parte order qua the assessee. Looking into the peculiar facts of this case, we are of the considered view that the assessee deserves one more opportunity to present his case and, therefore, we restore this file to the Office of the NFAC with the direction to hear the appeal on merits after providing reasonable opportunity of hearing to the assessee. We also caution the assessee to fully comply with the directions of the NFAC in the set-aside proceedings when called upon to do so, failing which, the NFAC would be at complete liberty to pass the order in accordance with law, based on material available on record even if it is ex-parte qua the assessee.
In the result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open Court on 29/05/2025.