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Facts
The assessee appealed against an ex-parte order by the CIT(A) for AY 2010-11, claiming initial notices were not received and subsequent submissions, including a Rule 46A application and documents, were not considered. The department argued the assessee was non-cooperative, leading to ex-parte assessment and appellate orders.
Held
The Tribunal found that both the assessment and first appellate proceedings concluded ex-parte, with the CIT(A) failing to consider the assessee's submissions. Consequently, the Tribunal set aside the impugned order and restored the matter to the Assessing Officer for a de-novo assessment, granting the assessee a fair opportunity to present their case.
Key Issues
Validity of ex-parte assessment and appellate orders where the assessee claims lack of proper notice and non-consideration of submissions, and whether a fresh opportunity for hearing should be granted.
Sections Cited
Section 144, Section 147, Section 148, Section 142(1), Rule 46A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “B”, DELHI
Before: SHRI VIKAS AWASTHY & SHRI S RIFAUR RAHMAN
(A.Y.2010-11) Chandra Pal, Village Badha, Sikenderpur, Haryana 122401 ...... अपीलाथ�/Appellant PAN: BCZPP-1373-H बनाम Vs. Income Tax Officer, Ward 1(3), HSIIDC Building, Vanijya Nikunj, ..... �ितवादी/Respondent Udhyog Vihar, Phase-V, Gurugram अपीलाथ� �ारा/ Appellant by : Shri Mahfuzur Rahman, Chartered Accountant �ितवादी�ारा/Respondent by : Shri Amitabh Sah, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 13/11/2024 घोषणा क� ितिथ/ Date of pronouncement : : 13/11/2024 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (hereinafter referred to as 'the CIT(A)') dated 30.04.2024, for assessment year 2010-11.
Shri Mahfuzur Rahman, appearing on behalf of the assessee submits that the CIT(A) has passed impugned order without considering submissions of the assessee.
He submitted that initial notices issued by the CIT(A) were never received by assessee, hence the assessee could not respond to the same. The assessee responded to notice issued by the CIT(A) on 05.02.2024. In response to said notice, the assessee filed written submissions, application under Rule 46A, paper book, bank statement, financial statements for Financial Year 2009-10, sales register, purchase register, cash book, ledger of suppliers, etc. He referred to acknowledgement receipt to substantiate that aforesaid documents were uploaded by the assessee online on 09.02.2024. The ld. Counsel for the assessee further submitted that even in assessment proceedings, the assessee could not make submissions as the notice was never served on the assessee. The Assessing Officer (AO) passed assessment order invoking the provisions of section 144 of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’). He prayed for an opportunity to make submissions before the lower authorities.
Per contra, Shri Amitabh Sah representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. He submitted that the assessee has been non cooperative and failed to respond to the notices issued by the AO during assessment proceedings and the CIT(A) in First Appellate proceedings.
We have heard the submissions made by rival sides and have examined the order of authorities below. A perusal of the assessment order dated 30.10.2017 passed u/s. 147 r.w.s. 144 of the Act shows that assessment has been completed in ex-parte proceedings. Notice u/s. 148 of the Act was issued to the assessee, in response to said notice no return was filed by the assessee. The subsequent notices issued u/s. 142(1) of the Act to the assessee also remained un-responded. In First Appellate proceedings, the assessee furnished evidences alongwith application under Rule 46A and submissions before the CIT(A). To substantiate filing of application under Rule 46A and various documents, the assessee has placed on record acknowledgment of documents uploaded. The CIT(A) without taking cognizance of the said applications, documents furnished and the written submissions upload by the assessee on the portal of the department has disposed off appeal of the assessee in an ex-parte proceedings. Considering entire facts of the case, we deem it appropriate to restore this entire issue to the AO for denovo assessment after affording reasonable opportunity of making submissions to the assessee, in accordance with law. The AO shall serve notice to the assessee on address mentioned in Form No. 36 filed before the Tribunal or any other address provided by the assessee for service of notice to the AO. The assessee upon service of notice shall respond to the same, without fail.