TAI TADO,ITANAGAR vs. ITO, WARD- NORTH LAKHIMPUR, NORTH LAKHIMPUR

The assessee filed this appeal against the order of the learned Commissioner of Income Tax (Appeals), National Faceless Appeal Page 1 of 4 Tai Tado -Vs- The ITO, Ward- North Lakhimpur AY: 2020-21 Centre, Delhi (hereinafter referred to as the (“CIT(A)” dated 22.01.2025 passed under Section 250 of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) and pertains to the Assessment Year 2020-21.

The brief facts of the case are that, the assessee filed his original return of income for the AY 2020-21 on 24.07.2020 declaring Nil income. In the said return, the assessee claimed exemption u/s 10(26) for an amount of Rs. 12,03,50,213/-. The assessee has also filed revised return of income on 08.03.2021 showing Nil income. In the revised return also, the assessee claimed exemption u/s 10(26) for an amount of Rs. 12,08, 15, 513/-. The case was selected for scrutiny under CASS and statutory notices were served upon the assessee. There was a claim for refund of Rs. 26,20,650/- including the claim for exemption of Rs. 12,08,15,513/- under section 10 (26). The assessee failed to comply the notices issued by the AO. Hence, the AO made addition of Rs. 12,08,15,513/- to the total income of the assessee vide order dated 19.09.2022. Being aggrieved, the assessee filed 1st appeal before the ld.

CIT(A). The ld. CIT(A) vide order dated 22.01.2025 dismissed the appeal of the assessee.

Being aggrieved, the assessee filed the present appeal before the Tribunal.

We observe that, the ld. CIT(A) dismissed the appeal of the assessee by observing that, the assessee has not furnished any reply nor sought any adjournment and has not given any factual or legal details to come to the conclusion different from that of AO. Thus, the order of the ld. CIT(A) was an ex-parte order.

From the aforesaid, we have observed that, the lower authorities were constrained to complete the assessment due to non-participation in the assessment proceedings before the AO. Similarly, the ld. CIT(A) constrained to dismiss the appeal of the assessee due to non-submissions of reply / evidences by the assessee in support of the appeal of the assessee.

Since, both the orders of the lower authorities were ex- parte orders, we are of the view that, the case of the assessee should be remanded to AO for reconsideration of his assessment order dated 19.09.2022 after giving the assessee an adequate opportunity of being heard. Accordingly, for the interest of justice, we remand the case to the file of the AO for reconsideration. We direct the AO to reframe the assessment after giving the assessee an adequate opportunity of being heard. At the same time, we direct the assessee to substantiate his claims before the AO. In order to reframe the assessment, we set aside the order of the ld. CIT(A) dated 22.01.2025. Thus, we allow the appeal of the assessee for statistical purposes only.

In the result, the appeal of the assessee is allowed for statistical purposes only. Order pronounced in the open court on this 03rd day of 09. September, 2025.