ROHINI,THENI vs. ADDITIONAL COMMISSIONER OF INCOME TAX, NON CORPORATE RANGE 2, MADURAI, MADURAI

This appeal filed at the instance of the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 10.07.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2017-18.

At the very outset, we notice that the order passed by the First Appellate Authority (FAA) is ex-parte, since there was no compliance from the assessee to three notices issued from the office of the First Appellate Authority. Further, we also notice that the impugned penalty order passed u/s.271D of the Act by the AO is also ex-parte.

The Ld.AR for the assessee submitted that the order passed by the FAA is ex-parte. The Ld.AR submitted that before the FAA the assessee has stated that she has filed declaration under VSVS, 2024 and further, she has availed the VSVS, 2024 scheme in the quantum assessment. However, the Ld.FAA had dismissed the appeal of the assessee ex-parte by observing that quantum assessment and penalty proceedings are separate and assessee has not filed any valid explanation. The Ld.AR for the assessee submitted that the impugned penalty order passed by the AO is also ex-parte since the assessee had not responded to the notices issued. Since the assessee has not produced any submission before the AO and the FAA, the Ld.AR for the assessee only pleaded that in the interest of justice and equity,

The Ld.DR submitted that adequate opportunities were provided from the offices of the AO and the FAA and there is no violation of principles of natural justice. Therefore, it was prayed the appeal of the assessee may be dismissed.

We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA was ex-parte, since the assessee did not respond to various notices issued. The assessee has not produced any submissions or documents before the AO nor the FAA. We strongly deprecate the nonchalant attitude of the assessee in not responding to the notices issued from the offices of the FAA and the AO. However, in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co- operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.

In the result, the appeal filed by the assessee is allowed for statistical purposes.