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Facts
The assessee's appeal arose from an ex-parte decision by the lower authorities due to repeated non-compliance. The tribunal noted that the assessee did not appear for the hearing.
Held
To prevent a miscarriage of justice, the tribunal remitted the matter back to the Ld. AO for fresh consideration, directing an opportunity of being heard to the assessee. It was clarified that if the assessee fails to cooperate, the AO can proceed as per law.
Key Issues
Whether the Income Tax Appellate Tribunal should provide a fresh opportunity for the assessee to present their case when prior proceedings were decided ex-parte due to non-compliance.
Sections Cited
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Income Tax Appellate Tribunal, “SMC” BENCH, DELHI
Before: MS. MADHUMITA ROY
None appeared on behalf of the assessee at the time of call. It appears that both the authorities below the assessee could not appear and the issue has been decided exparte, particularly in view of repeated non-compliance made by the assessee. However, in order to prevent the miscarriage of justice this bench finds it fit and proper to grant a further opportunity be given to the assessee to represent its case effectively before the Ld. AO and, hence, the appeal is disposed of by remitting the issue to the file of the Ld. AO for consideration afresh. The Ld. AO is further directed to grant an opportunity of being heard to the assessee 1 | P a g e I T A N o . 7 6 / D e l / 2 0 2 4 S m t . S a r i t a B h a m b r a and to consider the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. However, it is also made clear that in the event the assessee does not cooperate with the Ld. AO, the said authority would be at liberty to proceed with the matter and to pass orders strictly in accordance with the law.
2 Assessee’s appeal is, thus, allowed.
Order pronounced in the open court on 14.11.2024