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Facts
The assessee filed an appeal challenging an order passed by the National Faceless Appeal Centre (NFAC). The assessee was ex-parte before the CIT(A), which led to the dismissal of the appeal. The assessee claimed there was a reasonable cause for not being able to appear effectively.
Held
The Tribunal noted that the assessee was ex-parte before the CIT(A) and the appeal was dismissed. Considering that there might have been a reasonable cause for the assessee's absence, the Tribunal decided to set aside the impugned order.
Key Issues
Whether the ex-parte order passed by the CIT(A) was justified, and whether the assessee had reasonable cause for not appearing before the CIT(A).
Sections Cited
250, 147, 144B, 151A, 80C, 80GG
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Income Tax Appellate Tribunal, “SMC” BENCH MUMBAI
Dattatray Vithoba Sawant Vs. Income Tax Officer, Wd- D7, 1103, Rounak City, 42(2)(2) Sector-4, Khadakpada, Kautilya Bhavan, Kalyan-West, Kalyan- Bandra Kurla Complex, 421301 Mumbai-400051 PAN/GIR No. ACLPS7508Q (Applicant) (Respondent) Assessee by Shri Jay Thakkar Revenue by Shri Brajendra Kumar (SR. DR.) Date of Hearing 10.02.2026 Date of Pronouncement 10.03.2026 आदेश / ORDER
PER SANDEEP GOSAIN, JM:
The present appeal has been filed by the assessee challenging the impugned order 28.07.2025 passed u/s 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre, Delhi (NFAC) for the assessment year 2015-16. The following grounds are reproduced below: “Additional Grounds raised for the 1" time 1.0 On facts and circumstances of the case and in law, the re-assessment order passed u/s.147 dated 21/09/2021 by National Faceless Assessment Centre (NFAC) is bad-in- law, since the Scheme for Faceless assessment of income
Dattatray Vithoba Sawant escaping assessment prescribed u/s.151A had been notified by the CBDT w.e.f. 29/03/2022; 2.0 On facts and circumstances of the case and in law, the re-assessment order passed u/s.147 r.w.s. 144B is bad- in-law, since the intimation to the assessee to complete the assessment in accordance to the procedure laid u/s.144B has not been provided by the NFAC; Other Grounds 3.0 On facts and circumstances of the case and in law, Ld. CIT(A) erred in passing the ex-parte order, without considering the bonafide reasons that had precluded the appellant to participate in the appeal; 4.0 On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the disallowance of deduction u/s 80C of Rs. 1,50,000/-; 5.0 On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the disallowance of rent paid u/s 80GG of Rs.24,000/-; 6.0 On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the disallowance of conveyance and other allowances of Rs.34,967/-; The appellant craves leave to add, amend, alter and/or withdraw any of the grounds of appeal at the time of hearing.”
2. We have heard the counsels for both parties, perused the material placed on record, and the order passed by the Revenue Authorities. From the records, we noticed that the assessee was ex-parte before Ld. CIT(A) and Ld. CIT(A) dismissed the appeal.
Be that as it may, without going into the merits of the issues raised by the assessee and considering the fact that there was reasonable cause, because of which assessee could not put
Dattatray Vithoba Sawant effective representation before Ld. CIT(A). Hence the Bench is of the view that adequate opportunity be given to the assessee to represent his case before Ld. CIT(A). Therefore, considering the overall circumstances of the present case, we set aside the impugned order and restore the matter back to the file of Ld. CIT(A) for deciding the matter afresh by providing adequate opportunity to the assessee. Subject to cost of Rs. 2,000/- imposed upon the assessee which shall be deposited in the Prime Minister Relief Fund and a copy of the receipt shall be placed on file before Ld. CIT(A) within 30 days from the date of receipt of this order. 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 stands allowed. Order pronounced in the open court on 10.03.2026 Sd/- Sd/- (PRABHASH SHANKAR) (SANDEEP GOSAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER Mumbai, Dated 10/03/2026 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : अपीलार्थी / The Appellant 1. प्रत्यर्थी / The Respondent. 2. संबंधित आयकर आयुक्त / The CIT(A) 3. 4. आयकर आयुक्त(अपील) / Concerned CIT धिभागीय प्रधतधिधि, आयकर अपीलीय अधिकरण,मुम्बई/ DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file. 6. आदेशानुसार/BY ORDER, सत्याधपत प्रधत //True Copy//
उि/सहायक िंजीकार ( Asst. Registrar) आयकर अिीिीय अतिकरण, मुम्बई / ITAT, Mumbai