JAGGARAO BANDARU,PADERU vs. INCOME TAX OFFICER, WARD-2(5), VISAKHAPATNAM

At the outset, learned AR submitted that the income tax practitioner that was looking after the affairs of the assessee had fallen sick and could not appeal before the authorities responding to the notice issued by them, but the said fact was not brought to the notice of the assessee and that is the reason why the proceedings before the learned Assessing Officer as well as the learned CIT(A) ended up in ex parte orders. Learned AR submitted that the nonappearance of the assessee or its counsel before the authorities is not intentional but only due to the reason of ill-health of the income tax practitioner. She submitted that given an opportunity the assessee is now prepared to conduct the proceedings diligently having realised the importance of the same.

Learned DR placed reliance on the impugned order to state that when once the authorities issued notice to the assessee, it is for the assessee to make arrangements for conduct of the case diligently and merely by citing the ill-health of the income tax practitioner the assessee cannot escape the consequences.

We have gone through the record in the light of the submissions made on either side. Case of the assessee is that having entrusted the matter to the income tax practitioner, the assessee was under the impression that such income tax practitioner would attend the proceedings before the authorities and in case of any problem, the assessee would be notified of the same, but as a matter of fact it is only due to the following of the income tax practitioner sick and not informing the same to the assessee, the proceedings before the authorities concluded ex parte.

Assessee does not stand to gain by remaining ex parte before the authorities, nor can we infer any mala fides on the part of the assessee in that respect. The highest that would happen by affording an opportunity to the assessee is that a cause could be decided on merits and the correct tax liability of the assessee could be determined in the interest of justice. We therefore find it to be a fit case to set aside the impugned orders and restore the matter to the file of the learned Assessing Officer to be decided on merits.

With this view of the matter, we set aside the impugned orders and to restore the matter to the file of the learned Assessing Officer to be decided on merits after affording an opportunity to the assessee of being heard. Grounds are answered accordingly.

In the result, appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on this the 4th day of March, 2025.