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Facts
The assessee, The Yeotmal Urban Co-operative Bank, filed an appeal against an ex-parte order passed by the CIT(A) for AY 2018-19. The lower authorities had passed ex-parte orders because the assessee failed to comply with notices and did not submit relevant documents.
Held
The Tribunal acknowledged the assessee's non-compliance but considering the tricky nature of issues and that proceedings occurred during the COVID-19 pandemic, it decided to remand the matter back to the CIT(A). The remand is conditional on the assessee depositing a token cost of ₹11,000 within 15 days and filing all relevant submissions/documents, with a warning against future defaults.
Key Issues
Whether ex-parte orders passed against an assessee for non-compliance should be remanded for fresh adjudication, especially considering the complexity of issues and the COVID-19 period proceedings.
Sections Cited
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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 19/06/2025 Date of Order – 19/06/2025
O R D E R PER N.K. CHOUDHRY, JM:
The present appeal has been filed by the assessee challenging the impugned order dated 28/02/2025, passed by the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, [for short, “learned CIT(A)”] for the assessment year (for short, “A.Y.”) 2018–19.
As the orders passed by the authorities below are ex–parte, therefore, we are inclined to dismiss the adjournment application filed by the assessee and thus the same is hereby rejected.
2 The Yeotmal Urban Co–operative Bank ITA no.277/Nag./2025
Admittedly, the assessee neither complied with the notices issued by the authorities below nor filed any submissions / documents and, therefore, both the authorities below were constrained to pass respective orders as ex–parte. The conduct of the assessee seems to be non–compliant and irresponsible, therefore, the assessee is not entitled to any leniency, as claimed by the learned Departmental Representative. However, considering the peculiar facts and circumstances of the case in totality and as the issues involved are tricky in nature and remained to be adjudicated in its right perspective and proper manner, especially in the absence of submissions of the assessee and the assessment proceedings were also carried out during the COVID–19 period when the whole nation was at halt, this Court thus for just and proper decision of the case and substantive justice is inclined to remand the mater back to the file of the learned CIT(A), but subject to token cost of ` 11,000 (Rupees eleven thousand only) to be deposited within 15 days from the date of this order in the Revenue Department under “Other Head”.
The assessee is also directed to file the relevant submissions/documents. It is clarified that, in case of subsequent default, the assessee shall not be entitled for any leniency.
3 The Yeotmal Urban Co–operative Bank ITA no.277/Nag./2025
In the result, appeal filed by the assessee is allowed for statistical purposes, in terms as indicated above. Order pronounced in the open Court on 19/06/2025