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Facts
The assessee filed its return for AY 2017-18, which was selected for scrutiny. Due to non-furnishing of details, the AO assessed income at Rs. 69,65,973/-, against which the CIT(A) dismissed the assessee's appeal ex-parte.
Held
The Tribunal found that the CIT(A) dismissed the appeal ex-parte because the assessee, due to a change in counsel and inability to access the e-filing portal, could not represent its case. Therefore, in the interest of justice, the Tribunal restored the matter to the AO for a fresh decision after providing the assessee a proper opportunity of being heard.
Key Issues
The primary issue was whether the CIT(A) was justified in dismissing the appeal ex-parte without affording the assessee a proper opportunity of being heard, leading to the confirmation of various additions and disallowances.
Sections Cited
143(3), 143(2), 250, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘H’, NEW DELHI
Before: SH. PRADIP KUMAR KEDIA & SH. SUDHIR KUMAR
ORDER PER SUDHIR KUMAR, JM:
This appeal by the assessee is directed against the order passed by the National Faceless Appeal Centre [hereinafter referred as ‘NFAC’] dated 22.11.2023 pertaining to A.Y.2017-2018 under section 143(3) arises out of the assessment order passed by Income Tax Officer, Ward- 36(2), Delhi dated 29.12.2019 under section 143 (3) of the Income Tax Act [hereinafter referred as ‘the Act’].
2. The brief fact of the case is that assessee was filed its return of income on 31-10-2017 electronically, declaring total income of Rs 4,58650/-. The case was selected for complete scrutiny under CASS. The statutory notice u/s 143(2) dated 16-08-2018 was issued through ITBA Portal. In the response of the show cause notice the assessee submitted the reply but has failed to furnish the requisite details information. The AO assessed the total income Rs 6965973/- of the assessee. Assessee was filed the appeal before the Ld CIT(A). The appeal was dismissed by the Ld CIT(A) vide order dated 29-12-2019.
3. Aggrieved by the order of the lower authorities, the assessee is in appeal before us by raising the following grounds:-
1. The Order passed u/s 250 by the Commissioner of income-tax (Appeals) Income Tax Department, National Faceless Appeal Centre (NFAC), Delhi, is without granting proper opportunity to therefore is in violation of principles of natural justice. the appellant Rs. 65,32,521/-
That on the facts and circumstances of the case and in law, the order passed by the learned Commissioner of Income-tax (Appeals) Income Tax Department National Faceless Appeal Centre (NFAC), Delhi is bad both in the eye of law and on facts.
That on the facts and circumstances of the case and in law, the Is order passed by the learned Commissioner of Income-tax (Appeals) Income Tax Department National Faceless Appeal Centre (NFAC), Delhi without considering merits on matters raised in grounds of appeal therefore be set aside
4. That on the facts and circumstances of the case and in law Ld. That the Ld. Commissioner of Income-tax (Appeals) Income Tax Department National Faceless Appeal Centre (NFAC upholding assessment of Income assessed by Ld. A.O at Rs 69,65,973/-/- as against income returned at Rs 4,58,650/-
5. That on the facts and circumstances of the case and in law Ld. That the Ld. Commissioner of Income-tax (Appeals) Income Tax Department National Faceless Appeal Centre (NFAC) confirming additions of Rs. 62,62,369/- out of cash deposits in bank as undisclosed income under section 68 of Income Tax Act, 1961
6. That on the facts and circumstances of the case and in law Ld. That the Ld. Commissioner of Income-tax (Appeals) Income Tax Department National Faceless Appeal Centre (NFAC) confirming additions of Rs.62,62,369/- cash recorded in the books of accounts and deposits in bank as undisclosed income under section 68 of Income Tax Act, 1961.
7. That on the facts and circumstances of the case and in law Ld. That the Ld. Commissioner of Income-tax (Appeals) Income Tax Department National Faceless Appeal Centre (NFAC) in confirming adhoc disallowance ofRs.2,44,954/- being 30% out of o the total expenditure amounting to Rs.8,16,512/-
8. That the grounds of appeal as herein are without prejudice to each other.
9. That the appellant craves to add, amend, alter or forgo any ground(s) either before or at the time of hearing of the appeal.
We have heard the parties and perused the record.
The Ld. Counsel for the assessee has submitted that the Ld. CIT(A) has dismissed the appeal ex-parte as the assessee has changed his previous Counsel due to some certain reason, who look after his income tax returns as well as the appeals before the CIT(A). The notices were sent through e-mail portal to his erstwhile counsel. The assessee could not open the e-filing portal because the password of the portal was not available with him. For that reason the appeal filed before the CIT(A) could not be attended and same was decided by the first appellate authority ex-parte.
Ld DR for the Revenue relied upon the respective orders of the lower authorities.
We have given a thoughtful consideration to the orders of the authorities below. We are of the considered opinion that an opportunity needs to be given to the assessee to represent his case afresh with relevant documentary evidence. Therefore, in the interest of justice and fair play we restore the issue to the file of the AO to be decided afresh after affording a reasonable and sufficient opportunity of being heard to the assessee.
In the result, the appeal is allowed for statistical purpose.
Order pronounced in the open court on 26.06.2024.