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Facts
The appeal is against an assessment order under section 143(3) of the Income-tax Act, 1961, for AY 2017-18, passed by the ACIT and confirmed by the NFAC. The NFAC decided the appeal ex parte without adjudicating the issues on merits. The assessee did not appear despite notice and failed to rectify a defect notice concerning an incorrect PAN.
Held
The Tribunal restored the appeal to the NFAC for de novo adjudication, as the NFAC had decided the issue ex parte without merits adjudication. It directed the NFAC to provide a reasonable opportunity of being heard to the assessee, and the assessee to cooperate for expeditious disposal.
Key Issues
Whether the National Faceless Appeal Centre (NFAC) was justified in deciding the appeal ex parte without adjudicating the issues on merits, and if the matter should be remanded for de novo adjudication with a proper opportunity for the assessee.
Sections Cited
Section 143(3) of the Income-tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “E”: NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in AY 2017-18, arises out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. NFAC’, in short] in Appeal No.ITBA/NFAC/S/250/2024-25/1065956585(1) dated 24.06.2024 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 06.01.2020 by the Assessing Officer, ACIT, Circle-15(2), New Delhi (hereinafter referred to as ‘ld. AO’).
None appeared on behalf of the assessee despite issuance of notice. In fact a defect notice was issued to the assessee mentioning wrong PAN in Form 36 on 22.08.2024 which was also not rectified by the assessee. Further, on going through the grounds raised by the assessee and the order of the National Faceless Appeal Centre (NFAC), we find that the ld NFAC had decided the issue ex parte without adjudicating the issue on merits giving its independent finding. Hence, in the interest of justice and fairplay we deem it fit and appropriate to restore this appeal to file of ld NFAC for de novo adjudication in accordance with law. Needless to mention the assessee be given reasonable opportunity of being heard. The assessee is directed to cooperate with ld NFAC for expeditious disposal of the appeal by not taking unwarranted adjournments. Hence, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 10/12/2024.