Loading judgment…
Facts
The assessee filed appeals against ex-parte orders passed by the FAA for Assessment Years 2020-21 & 2021-22, citing a delay of 10 days and failure to receive hearing notices. Additional evidence was submitted before the Tribunal.
Held
The Tribunal condoned the delay in filing the appeals, acknowledging sufficient reason. While deprecating the assessee's non-chalant attitude towards FAA notices, the Tribunal accepted additional evidence in the interest of justice.
Key Issues
Whether the ex-parte orders passed by the FAA are justified, and if additional evidence should be admitted for substantial cause and justice.
Sections Cited
250 of the Income Tax Act, 1961, 201 of the Income Tax Act, 1961, 201(1A) of the Income Tax Act, 1961, Rule 29 of the Income Tax Appellate Rules, 1963
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI S.R. RAGHUNATHA
आदेश/ O R D E R PER GEORGE GEORGE K, VICE PRESIDENT: These appeals filed by the assessee are directed against two orders of Commissioner of Income Tax (Appeal), Addl/JCIT(A)-2, Pune both dated 02.09.2025 passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Years are 2020-21 & 2021-22.
& 3778/Chny/2025 :- 2 -:
There is a delay of 10 days in filing these appeals. The assessee has filed condonation petition along with affidavit stating therein the reasons for belated filing of these appeals. On perusal of the same, we find there is sufficient reason for delay in filing these appeals before the Tribunal. Hence, we condone the delay in filing the appeals and proceed to dispose off the appeals on merits.
At the very outset, we notice that the orders passed by the First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to four notices issued from the office of the First Appellate Authority.
The Ld.AR for the assessee submitted that the order passed by the FAA is ex-parte since the assessee has failed to take note of the hearing notices issued from the office of the FAA. The Ld.AR further submitted that the assessee could not file complete details before the AO during the assessment proceedings. The Ld.AR for the assessee submitted that the assessee has filed all evidences before the Tribunal along with the petition for admission of additional evidence under Rule 29 of the Income Tax Appellate Rules, 1963. The Ld.AR submitted that additional evidences now filed before the Tribunal is essential to prove that the demand raised in the order passed u/s.201 / 201(1A) of the Act is wholly unjustified and erroneous and prayed that the documents now produced as additional evidence may be taken on record for substantial cause and justice.
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 material on record. The assessee before the Tribunal has furnished additional evidences, which goes to the root of the matter and are essential for adjudication of the issue raised. Hence, for substantial justice and equity, the additional evidences now produced before the Tribunal are taken on record. The assessee has not given effective representation before the FAA. We strongly deprecate the nonchalant attitude of the assessee in not appearing or giving effective representation before the FAA. 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 with a condition assessee pays a cost of Rs.15,000/- each to be paid to Tamil Nadu State Legal Services & 3778/Chny/2025 :- 4 -:
Authority at the Hon’ble High Court of Madras. The amount of Rs.30,000/- (Rupees Thirty Thousand only) shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before 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 appeals filed by the assessee are allowed for statistical purposes.
Order pronounced in the open court on 5th January, 2026 at Chennai.