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Facts
The assessee did not file an income tax return for AY 2016-17. The Assessing Officer reopened the assessment under Sections 147 and 148 due to the sale of immovable property, and passed an ex parte order under Section 144 read with Section 147, making additions. The CIT(A) dismissed the assessee's appeal solely on the grounds of non-compliance, without addressing the merits of the case.
Held
The Tribunal observed that the CIT(A)'s order was passed ex parte and lacked consideration of the case's merits. In the interest of justice, the Tribunal remanded the matter back to the CIT(A) with directions to re-examine the issues on merits after providing the assessee a reasonable opportunity to be heard, while also emphasizing the assessee's need to cooperate.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte for non-compliance without addressing the merits, and if the case should be remanded for fresh adjudication.
Sections Cited
147, 148, 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, COCHIN BENCH
Before: SHRI INTURI RAMA RAO & SHRI SONJOY SARMA
Assessment Year: 2016-17 Baiju Bhaskaran…………………..………………………..…..….……….Appellant Ayyar and Cherian CAs, Keralapuram Building, Sreenivasa Ayyar Road, Kottayam, Kerala – 686001. [PAN:ANMPB2833K] vs. DCIT, Circle Intl. Txn, TVM……….....................……........……...…..…..Respondent Appearances by: Noneappeared on behalf of the assessee. Smt. Leena Lal, SNR AR,appeared on behalf of the Revenue. Date of concluding the hearing :June04, 2025 Date of pronouncing the order :July 22, 2025 ORDER
Per Sonjoy Sarma, Judicial Member:
This appeal is filed by the assessee against the order dated 19.03.2025 passed by the National Faceless Appeal Centre, Delhi, [hereinafter referred to as ‘CIT(A)’].
No one has appeared on behalf of the assessee in spite of serving notices for hearingand the Tribunal cannot keep this appeal pending for indefinite time due to non-representation. Therefore, in the absence of any authorised representative of the assessee, we proceed to decide the appeal with the assistance of ld. DR and also considering the material available on record.
Brief facts of the case are that the assessee did not file return of income for the assessment year 2016-17 and the Assessing Officer found that during the year under consideration the assessee had made sale of Baiju Bhaskaran immovable property of Rs.54,00,000/-. The case of the assessee was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act. However, the assessee did not response to the notice issued by the Assessing Officer accordingly, the Assessing Officer passed assessment order u/s 144 r.w.s. 147 of the Act by making addition of Rs.54,00,000/- as short-term capital gain and Rs.1670/- as income from other sources.
Dissatisfied with the above order,the assessee preferred an appeal before the ld. CIT(A) against the assessment order. The ld. CIT(A) dismissed the appeal solely on the ground of non-compliance by simply upholding the order of the Assessing Officer.
Aggrieved by the said order, the assessee filed the present appeal before this Tribunal raising various grounds. However, at the time of hearing, none appeared on behalf of the assessee.
The ld. DR supported the decisions rendered by the authorities below.
We, after hearing of the ld. DR and perusing the materials available on record, find that the order of the ld. CIT(A) was passed ex parte since no compliance was made on the part of the assessee and the order of the ld. CIT(A) was passed without addressing the merit of the case. Therefore, in the interests of justice and fair place, we deem it fit to remand the whole issue back to the file of the ld. CIT(A) with a direction to re- examine the issues on merits after providing reasonable opportunity of being heard to the assessee for submitting relevant details or documents to substantiate the claim of the assessee. We also emphasise that the assessee must fully cooperate by responding all notices and due compliance will made during the remand proceedings.
Kolkata, the 22nd July, 2025.