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Facts
The assessee failed to furnish written submissions before the CIT(A) due to staff being busy with audit formalities, leading to an ex-parte dismissal of their appeal. The assessee requested an adjournment, which was not granted. The Revenue argued that the assessee was given sufficient opportunity.
Held
The Tribunal considered the submissions and restored the matter to the file of the CIT(A). The CIT(A) is directed to adjudicate the appeal on merit, ensuring the assessing officer provides a fair opportunity to the assessee.
Key Issues
Whether the dismissal of the appeal by the CIT(A) in ex-parte proceedings was justified, and if not, whether the appeal should be restored to the file of the CIT(A) for adjudication on merits.
Sections Cited
254(1) of Income Tax Act
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PER PAWAN SINGH, JUDICIAL MEMBER;
This appeal by assessee is directed against the order of ld. CIT(A) / NFAC, dated 10.11.2025 for Assessment Year (AY) 2020-21.
Rival submissions of both the parties have been heard and record perused.
The learned Authorised Representative (ld. AR) of the assessee submits that assessee could not furnish written submission before ld. CIT(A) due to paucity of time as it was September and October 2025, wherein the majority of staff from the office of representative of assessee was busy in completing Audit related formalities. Though the assessee applied adjournment, yet, the ld. CIT(A) not considered such reply and dismissed the appeal in ex-parte proceeding. The ld. AR of the assessee submits that he undertakes on behalf of the assessee to be more vigilant for future in making timely compliance and that at least one more opportunity may be allowed to contest the case on merit.
On the other hand, learned Senior Departmental Representative (ld. Sr. DR) for the Revenue submits that assessee was allowed reasonable and sufficient opportunity. The excuse / explanation offered by assessee is not acceptable.
In case the Hon’ble Bench is convinced with the explanation of assessee, the assessee may be given direction not to make default in future.
I have considered the rival submissions of both the parties and have gone through the orders of lower authorities. I find that assessee filed appeal before ld. CIT(A), appeal on 14.04.2025 and was dismissed in ex-parte order dated 10.11.2025. Considering the facts of the case that the assessee is interested to pursue its appeal on merit, therefore, matter is restored to the file of ld. CIT(A) to adjudicate all the grounds of appeal on merit. Needless to direct that before passing the assessment order, the assessing officer shall allow fair and reasonable opportunity to assessee. The assessee is also directed to be more vigilant making timely compliance. In the result, the grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, the appeal of assessee is allowed for statistical purpose.