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Facts
The assessee filed an appeal against an ex-parte order passed by the National Faceless Appeal Centre (NFAC) for AY 2016-17, which arose from an assessment order under Section 143(3) of the Income Tax Act, 1961. The assessee's counsel contended that they could not represent their case before the Ld. CIT(A) due to reasons beyond their control, despite notices of hearing being issued.
Held
The Income Tax Appellate Tribunal (ITAT) set aside the ex-parte order of the Ld. CIT(A) and remanded the matter back for fresh adjudication. The Ld. CIT(A) was directed to provide a fresh opportunity of hearing to the assessee, considering their evidence, but with a caveat that non-cooperation would allow the Ld. CIT(A) to finalize the matter according to law. The appeal was allowed for statistical purposes.
Key Issues
Whether an ex-parte order passed by the First Appellate Authority should be set aside and the matter remanded for fresh adjudication when the assessee claims they could not represent their case due to reasons beyond their control, thus warranting a fresh opportunity of hearing to prevent a miscarriage of justice.
Sections Cited
143(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “A: NEW DELHI
Before: MS MADHUMITA ROY & SHRI BRAJESH KUMAR SINGH
O R D E R PER MADHUMITA ROY, J. M.: 1. The instant appeal filed by the assessee is directed against the order dated 29.11.2023 passed by the ld CIT(A)/ National Faceless Appeal Centre (NFAC), Delhi arising out of the order dated 11.12.2018 passed under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) issued by the ITO, Ward-1, Rohtak for AY 2016-17.
At the time of hearing of the matter Ms. Rano Jain appeared on behalf of the assessee and submitted before us that the impugned order passed by the National Faceless Appeal Centre (NFAC) is admittedly as ex parte one. It was further submitted faithfully that notices of hearing were though issued by the First Appellate Authority, the assessee was not been able to represent his case due to the Azad Singh reasons beyond the control. Under this circumstances she humbly prays for further opportunity of being heard by the authorities below for adjudication of the matter in its proper perspective. Such prayer made by the Ld AR has not been objected by the ld DR with all her fairness.
Having heard the Ld counsel appearing for the parties and having regard to the facts and circumstances of the case we find that though the assessee was given opportunity of being heard by the ld CIT(A), for some reasons or the other the assessee failed to represent his case and in that view of the matter, in order to prevent the miscarriage the justice, we find a further opportunity be afforded to the assessee by the ld CIT(A) for represent his case in its proper perspective.
With the above observation, we, therefore set aside the issue to the file of the Ld CIT(A) for adjudication of the same afresh. The Ld. CIT(A) is directed to grant an opportunity of being heard to the assessee 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. We also make it clear that in the event, the assessee does not co-operate with the authorities below, the ld CIT(A) would be at liberty to proceed with the matter and finalise the same strictly in accordance with the law.
Appeal of the assessee is, therefore, allowed for statistical purposes.
Order pronounced in the open court on 21/06/2024.