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Facts
The assessee declared a loss which was accepted initially, but subsequently, assessment proceedings under Section 143(3) r.w.s 144B of the Act determined a positive income. The assessee appealed to the CIT(A) but failed to succeed. The assessee also failed to appear before the CIT(A).
Held
The Tribunal noted that even though the assessee failed to appear, the CIT(A) did not deal with the merits of the case. Citing a precedent, the Tribunal held that the CIT(E), NFAC is obliged to dispose of appeals on merits even in ex-parte orders. Accordingly, the appeal was restored to the file of CIT(E), NFAC for necessary adjudication.
Key Issues
Whether the CIT(A)/CIT(E) is obliged to decide an appeal on merits even if the assessee fails to appear? Whether proper opportunity of hearing was granted to the assessee?
Sections Cited
143(3), 144B, 143(1)(A)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC” JAIPUR
Before: SHRI MANISH BORAD, AM vk;dj vihy la-@ITA. No. 473/JPR/2025
fu/kZkj.k o"kZ@Assessment Year : 2020-21 cuke Rajasthan Prashasnik Seva ITO, Parishad Vs. Ward-Exemption-01, 2 Parishad Bhawan, JLN Marg Jaipur Institutional Area, Jaipur LFkk;h ys[kk la-@thvkbZvkj la-@PAN/GIR No.: AACAR7538R vihykFkhZ@Appellant izR;FkhZ@Respondent fu/kZkfjrh dh vksj ls@ Assessee by : Shri Sharwan Kumar Gupta, Adv. jktLo dh vksj ls@ Revenue by : Shri Gautam Singh Choudhary, JCIT lquokbZ dh rkjh[k@ Date of Hearing : 30/06/2025 mn?kks"k.kk dh rkjh[k@Date of Pronouncement : 02/07/2025 vkns'k@ ORDER PER: MANISH BORAD, AM
This appeal at the instance of the assessee is directed against the order of ld. CIT(A), NFAC dated 25.02.2025 arising out of the order for A.Y 2020-21 framed u/s 143(3) r.w.s 144B of the Act dated 19.09.2022 framed by Assessment Unit, Income Tax Department. contentions and perused the records placed before me. The only grievance of ld. Counsel for the assessee is for remitting the issues raised on merits to the file of ld. CIT(E) for necessary adjudication.
He also submitted that for want of proper communications, the assessee could not appear before ld. CIT(E) on the given dates of hearing. Ld. DR did not raise any objections.
I note that the assessee declared of loss of Rs. 80,41,130/- which was accepted by the CPC in the return process u/s 143(1)(A) of the Act but subsequently, assessment proceedings were carried out u/s 143(3) of the Act and positive income determined at Rs. 10,62,458/-. The assessee preferred any appeal before ld. CIT(A) but faild to succeed. I notice that even though the assessee failed to appear but ld. CIT(A) has not dealt with the merits of the case. Hon’ble Bombay High Court in the case of PCIT(C) vs. Prem Kumar Arjun Das Ruthra (HUF) (2017) 296 CTR 614 Bombay has held that ld. CIT(E), NFAC is obliged to dispose off appeal on merits even in an ex-parte order. Under these facts and circumstances and in the interest of justice and being fair both the parties, I hereby restore all the issues raised in the instant adjudication. Needless to mention that proper opportunity of being heard should be granted to the assessee. The assessee should also refer from seeking unnecessary adjournment unless otherwise required for reasonable cause. Effective grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on 02/07/2025.