CARNET ELIAS FERNANDES,BHOPAL vs. NATIONAL FACELESS APPEAL CENTRE, DELHI, NATIONAL FACELESS APPEAL CENTRE, DELHI

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ITA 470/IND/2024Status: DisposedITAT Indore28 August 2025AY 2013-144 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, considering the submissions of both parties, the principle of natural justice, and the fact that no prejudice would be caused to the revenue, decided to remand the matters back to the file of the Assessing Officer (AO) for fresh adjudication. The Tribunal noted that the assessee's inability to furnish documents was due to old age and the age of the documents. The AO was directed to provide a necessary opportunity of hearing to the assessee and pass appropriate orders, uninfluenced by his earlier orders. The assessee was directed to be vigilant, ensure participation in hearings, and avoid unnecessary adjournments. The appeals were allowed for statistical purposes.

What were the facts?

The assessee, Carnet Elias Fernandes, filed three appeals (ITA Nos. 470 to 472/Ind/2024) against orders dated 27.03.2024 passed by the CIT(A), NFAC, Delhi. These orders arose from assessment orders dated 19.03.2022, passed by the NFAC, Delhi, under Section 147 read with Section 144B of the Income-tax Act, 1961, for Assessment Years 2013-14 to 2015-16. The appeals were consolidated for hearing as the facts and issues were similar. The assessee contended that the CIT(A) decided the first appeal ex-parte due to non-submission of arguments, despite opportunities, and that the additions made by the AO were due to the assessee's inability to furnish old documents owing to old age. The assessee sought a remand to the AO for fresh adjudication.

What were the issues?

1. Whether the CIT(A) erred in deciding the first appeal ex-parte without adjudicating the grounds on merit, thereby violating the principles of natural justice and Section 250(6) of the Income-tax Act, 1961? Assessee's Contention: The assessee argued that the CIT(A) passed an ex-parte order because the assessee did not make submissions, despite opportunities. The assessee contended that the CIT(A) failed to adjudicate the grounds on merit as required by Section 250(6) of the Act, which mandates that the order should state the points for determination, the decision, and the reasons. Therefore, the CIT(A)'s order deserves to be set aside. Revenue's Contention: The Revenue agreed with the assessee's submissions and prayer for remand.

Which sections of the Income-tax Act were involved?

Section 147,Section 144B,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI B.M. BIYANI

For Appellant: Shri Harsh Vijaywargiya, AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 28.08.2025Pronounced: 28.08.2025

आदेश/ O R D E R

Per B.M. Biyani, A.M.:

1.

The captioned three appeals have been filed by assessee against three separate orders of first-appeal, all dated 27.03.2024 and all passed by learned Commissioner of Income-tax (Appeals), National Faceless Appeal Centre, Delhi [“CIT(A)”], which in turn arise out of respective three assessment-orders, all dated 19.03.2022 and all passed by National Faceless Assessment Centre, Delhi [“AO”] u/s 147 r.w.s. 144B of the Page 1 of 4

Carnet Elias Fernandes to 472/Ind/2024 AY 2013-14 to 2015-16 Income-tax Act, 1961 [“the Act”] for Assessment-Years [“AY”] 2013-14 to 2015-16.

2.

Ld. Representatives of both sides instantly agreed that the facts and issues involved in all three appeals are similar, therefore these appeals can be decided on the basis of facts of AY 2013-14.

3.

Ld. AR for assessee next submits that the CIT(A) has decided first- appeal ex-parte qua assessee for the reason that the assessee did not make any submission before him despite opportunities given. He further submits that the CIT(A) has simply confirmed the order passed by AO and thereby upheld the additions but the grounds/issues raised by assessee in first appeal requires an apt adjudication by CIT(A) on merit in accordance with provisions of 250(6) of the Act which provides “The order of the Commissioner (Appeals) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision.”. Therefore, the order passed by CIT(A) deserves to be set aside.

4.

Ld. AR thereafter carries us to the assessment-order and demonstrates that the AO has made addition for lack of evidences which the assessee could not file at that point of time due to his old age and also for the reason that the documents required were old. However, the assessee has partly collected documents and further making serious efforts to collect remaining documents for the assistance of AO. He submitted that in the interest of justice these matters may be remanded back to the file of AO.

Carnet Elias Fernandes to 472/Ind/2024 AY 2013-14 to 2015-16 5. Ld. DR for revenue agrees with the submissions and prayer of Ld. AR but makes a request to direct the assessee to represent his case before AO and do not seek unnecessary adjournments.

6.

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.

7.

Resultantly, these appeals are allowed for statistical purpose.

Order pronounced in open court immediately after conclusion of hearing and subsequently reduced in writing on the same day.

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