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Facts
For A.Y. 2011-12, the assessee's case was reopened based on intelligence about accommodation entries, leading to an assessment of ₹1,60,00,000/- under sections 144/147 due to non-compliance with notice u/s 142(1). The CIT(A) subsequently dismissed the assessee's appeal ex-parte for lack of compliance.
Held
The Tribunal observed the CIT(A)'s order was ex-parte. After reviewing the assessee's affidavit, which explained non-compliance due to illness and administrative issues and included an undertaking for future cooperation, the Tribunal restored the appeal to the CIT(A) for fresh adjudication. The CIT(A) is directed to hear the assessee and pass a fresh order, with the assessee mandated to cooperate.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte when the assessee provided reasons for non-compliance and an undertaking to cooperate.
Sections Cited
148, 143(3), 142(1), 144, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, `Patna BENCH, PATNA
Before: SHRI RAJESH KUMAR, AM & SHRI PRADIP KUMAR CHOUBEY, JM
(Assessment Year: 2011-12) Vivid Colors Pvt Ltd. C/o Subash Agarwal & DCIT-Circle 2, Patna 4th Floor, Lok Nayak Jai Prakash Associates, Advocates Siddha Gibson, 1, Gibson Lane, Bhawan Fraser Road, Vs. Suite 213, 2nd Floor, Kolkata- Patna, Bihar 700069, West Bengal (Appellant) (Respondent) PAN No. AACCV1786F Assessee by : Shri Parna Dutta, AR Revenue by : Shri Ashwani Kr. Singal, DR Date of hearing: 08.07.2025 Date of pronouncement: 18.07.2025 O R D E R Per Pradip Kumar Choubey, JM:
This is an appeal preferred by the assessee against the order of the National Faceless Appeal Centre, Delhi (hereinafter referred to as the “Ld. CIT(E)”] dated 04.02.2025 for A.Y. 2011-12.
The brief fact of the case is that the assessee has filed its return of income for the A.Y. 2011-12 was showing loss. On the basis of information received from DDIT, Unit-1, Kolkata, the case of the assessee was reopened. Accordingly, notice u/s 148 of the Income-tax Act, 1961 (the Act) was issued. The ld. AR of the assessee made compliance and filed the written submission and also filed fresh return of income showing loss. Subsequently, notice u/s 143(3) of the Act was issued and notice u/s 142(1) of the Act along with questionnaire was
Being aggrieved and dissatisfied, the assessee has preferred the appeal before us.
The ld. AR instead of arguing into the merits of the case has to give an opportunity to place his case before the ld. CIT (A) as the order passed by the ld. CIT (A) is an ex-parte order. The ld. AR has filed an affidavit and indicates that the proper compliance shall be made from the side of the assessee, if the appeal of the assessee is restored back to the file of the ld. CIT (A).
The ld. DR did not raise any objection.
“BEFORE THE NOTARY PUBLIC AFFIDAVIT 1, SHAMSHER ALAM, son of KAMRUDDIN, aged 58 years, by religion Muslim, resident of Koirpurawa, Ward-28, Buxar, Bihar, PIN-802101, do hereby solemnly affirm and state as follows-
1. 1. That I am one of the directors of M/s Vivid Colors Private Limited, hereinafter referred to as the "assessee" and, as such, I am competent to swear this affidavit on behalf of the said company.
2. That an appeal relating to A.Y.2011-12 was filed before the Ld. CIT(A), NFAC on 31.01.2019 against the assessment order dated 29.12.2018 u/s 147 r.w.s 144 of the Income Tax Act.
3. That the said appeal was dismissed by the Ld. CIT(A) by passing an ex- parte order on 04.02.2025 due to non compliance of anyone on assessee's behalf 4. That initially compliance could not be made since the assessee's office was not functioning due to covid. Thereafter, the accountant of the assessee-company who was entrusted with the task of accessing emails was not regularly attending office due to his ill health. As such, most of the notices skipped his attention.
5. That later on, on or around 25.02.2025 when I enquired the status of the appeal from my accountant and thereupon the said order was located in the Income Tax Portal which was already passed on 04.02.2025.
6. That then I immediately sought an appointment of Advocate Siddharth Agarwal of 1. Gibson Lane, Kolkata 700069 for filing an appeal before the Hon'ble Tribunal and handed over him all the relevant documents.
7. That the office of the said counsel prepared the appeal and finally the same was filed on 10.03.2025.
8. I give an undertaking that proper compliance shall be made from our end in case the matter is restored back to the file of lower authorities.