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Facts
The assessee filed an appeal before the CIT(A) on time. However, due to the COVID-19 pandemic and subsequent circumstances, the assessee could not effectively represent its case, leading to an ex-parte order by the CIT(A). The assessee sought an adjournment which was not considered.
Held
The Tribunal acknowledged that there was a reasonable cause preventing the assessee from effective representation before the CIT(A). Therefore, the Tribunal decided to give the assessee one more opportunity to represent its case.
Key Issues
Whether the assessee had sufficient cause for not being able to represent its case before the CIT(A), and if the ex-parte order passed by the CIT(A) was justified.
Sections Cited
250 of the Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “DB” BENCH, SURAT
Before: SHRI SANDEEP GOSAIN & SHRI OM PRAKASH KANT
IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, SURAT BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER & SHRI OM PRAKASH KANT, ACCOUNTANT MEMBER Assessment Year: 2016-17 Domadia Raiyaben Vs ITO (Exemption) muljiBhai Charitable Aayakar Bhavan, Mjura Trust, Gate, Surat - 395001 A/-2, Parth Bungalow, Opp Subham Aprt, Nr. Hotel Gate Way, Athwalines, Surat - 395001 PAN – AABTD3862E (Appellant) (Respondent) Assessee by Shri Rushi Parekh, CA Revenue by Shri Ajay Uke, Sr. DR Date of Hearing 08.10.2025 Date of Pronouncement 09.10.2025 ORDER Per: SHRI. SANDEEP GOSAIN, J.M.:
The present appeals have been filed by the assessee challenging the impugned order dt. 27.11.2024 passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2016-17. 2. At the very outset, we noticed that assessee was ex- parte before Ld. CIT(A). In this regard Ld. AR explained the circumstances before the bench that there was Domadia Raiyaben Muljibhai Charitable Trust, Surat ‘sufficient cause’ which prevented the assessee to represent properly before Ld. CIT(A), in this regard assessee has filed an application, which is reproduced herein below: Sir, the assessee has filed appeal before CIT(A) on Dt. 18/01/2019 in time. The appeal proceedings could not start due to covid-19 situation which was continuing it's spread afterward in 2nd wave and 3rd wave in between year 2020 to 2023 and during the same period of covid-19 first two notices u/s-250 were issued on 05/01/2021 and 15/04/2021 which could not be complied due to uncertainty and unusual circumstances. Thereafter as per new e-Appeal scheme, 2023 notice u/s 250 were issued on following dates. Sir, the above notice were issued with giving vary short period of time for compliance and the final notice u/s-250 was issued on 13/11/2024 to furnish details and submission on or before 25/11/2024 in response to which we have sought an Adjournment on 22/11/2024 seeking time upto 07/12/2024 (copy of Adjournment request is attached). However, CIT(A) had not considered the Adjournment request and passed an ex- party order on 27/11/2024. Kindly consider it as reasonable cause in not complying with the appellate proceedings as the assessee was prevented from making submission. I kindly request your Honour to admit this appeal and to set aside the matter to CIT(A) or AO with direction to verification of expenditure claimed and passing the order after giving opportunity of being heard.
On the contrary the Ld. DR submitted that Ld. CIT(A) was right in dismissing the appeal as the assessee had not cooperated and has not furnished required documents to substantiate its claim. Therefore while following the principles of nature justice the appeal was rightly rejected.
Be that as it may, without going into the merits of the issues raised by the assessee and taking into consideration of the facts narrated before us and while taking a lenient Domadia Raiyaben Muljibhai Charitable Trust, Surat view that there was reasonable cause, because of which assessee could not put effective representation before Ld. CIT(A). Hence the Bench is of the view that one more opportunity be given to the assessee to represent his case before Ld. CIT(A). Therefore considering the overall circumstances of the present case, we deem it proper to restore the matter back to the file of Ld. CIT(A) for deciding the matter afresh by providing one more opportunity to the assessee. The assessee shall not seek any adjournment on frivolous grounds and shall remain cooperative during the course of proceedings.
Before parting, we make it clear that our decision to restore the matter back to the file of the Ld. CIT(A) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the Ld. CIT(A) independently in accordance with law.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 09/10/2025 Sd/- Sd/- OM PRAKASH KANT SANDEEP GOSAIN ACCOUNTANT MEMBER JUDICIAL MEMBER Surat: Dated: /10/2025 KRK, Sr. PS.