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Facts
The assessee filed four appeals challenging orders passed by the CIT(A) and AO. The orders were passed ex-parte due to non-representation, with notices issued during the Covid-19 pandemic period. The assessee claimed the provided email ID for communication was not operational, leading to non-receipt of hearing notices.
Held
The Tribunal restored the matters back to the file of the AO for fresh adjudication, emphasizing the principle of natural justice. The AO was directed to provide a fresh opportunity of hearing to the assessee.
Key Issues
Whether the assessment and first appellate orders, passed ex-parte due to non-representation during the pandemic, warrant a remand for fresh adjudication to ensure principles of natural justice.
Sections Cited
147, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Before: SHRI B.M. BIYANI & SHRI PARESH M. JOSHI
आदेश/ O R D E R
Per Bench:
The captioned four (4) appeals have been filed by assessee challenging four (4) separate orders of first-appeal dated 25.10.2024 / 25.11.2024 passed by learned Commissioner of Income-Tax (Appeals)-3, Bhopal [“CIT(A)”], which in turn arise out of respective assessment-orders dated 25.03.2022 / 13.09.2021 passed by learned DCIT-Central Circle (2), Bhopal [“AO”] u/s 147 r.w.s. 144 of Income-tax Act, 1961 [“the Act”] for Assessment-Year [“AY”]
Jayant Security and Finance Ltd. to 41/Ind/2025 AYs: 2013-14, 2014-15, 2016-17 & 2017-18 2013-14, 2014-15, 2016-17 & 2017-18, on the grounds as mentioned in Appeal Memos (Form No. 36).
Ld. AR for assessee at first carries us to the orders of lower-authorities and demonstrates that the AO as well as CIT(A) have passed the orders of assessment as well as orders of first-appeals ex-parte to assessee for non- representation. Thereafter, the Ld. AR carries us to Para 2 of assessment- orders to further demonstrate that the all notices were issued by AO during Covid-19 pandemic period; hence the assessee was unable to comply with those notices. Thereafter, Ld. AR carries us to the Form No. 35 filed by assessee to CIT(A) and submits that the email id: audia1234@gmai.com mentioned therein for sending communications to assessee was an email id which had been automatically taken by system while filing first-appeal.
However, the said e-mail id was not in operation and the assessee could not receive notices of hearings fixed by CIT(A); hence the assessee was unable to participate in hearings of first-appeal. On merit of case, Ld. AR again carries us to assessment-order and submits that the AO has made hefty additions for lack of evidences and one amongst those additions is the addition on account of “Loans & Advances” given by assessee which were duly recorded in books of assessee and appearing in Balance-Sheet. According to Ld. AR, this addition on account of “Loans & Advances” is patently bad, illegal and could not have been made. Ld. AR thus submits that considering the facts of assessee’s case, the present matters are fit for restoring back to the file of Page 2 of 4
Jayant Security and Finance Ltd. to 41/Ind/2025 AYs: 2013-14, 2014-15, 2016-17 & 2017-18 AO for proper adjudication afresh. Ld. AR acknowledges that the assessee is ready and willing to make a proper representation before AO if an opportunity is given.
Ld. DR for revenue agrees with the prayer of Ld. AR but makes a request to direct the assessee to represent its case before AO and do not seek unnecessary adjournments.
Considering above submissions of parties; having regard to the principle of natural justice and also bearing in mind that no prejudice would be caused to revenue if the present matters are restored at the level of AO, we remand these matters back to the file of AO for adjudication afresh, at the risk and responsibility of assessee. The AO shall give necessary opportunity of hearing to assessee and pass appropriate orders uninfluenced by his earlier orders. The assessee is also directed to remain vigilant and ensure participation in the hearings as may be fixed by AO and do not seek unnecessary adjournments failing which the AO shall be at liberty to pass appropriate orders in accordance with law. Ordered accordingly.
Jayant Security and Finance Ltd. to 41/Ind/2025 AYs: 2013-14, 2014-15, 2016-17 & 2017-18
Resultantly, these appeals are allowed for statistical purpose.
Order pronounced in open court on 12/09/2025