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Facts
The appellant filed an early hearing application for appeals arising from penalty proceedings under section 271(1)(c) for AYs 2009-10 and 2010-11, where assessment orders were passed under sections 147/144. The appellant contended that notices were not served, leading to inadequate opportunity of hearing, and the first appeal was dismissed by the NFAC without addressing the merits.
Held
The Tribunal observed that the National Faceless Appellate Centre (NFAC) dismissed the first appeal superficially, without mentioning notice service or giving proper hearing, and failed to address the merits. Consequently, the Tribunal allowed the appeals for statistical purposes and restored the issues to the CIT(A) for a fresh order after providing adequate opportunity of hearing to the assessee.
Key Issues
Whether the National Faceless Appellate Centre (NFAC) erred in dismissing the appeals without providing adequate opportunity of hearing to the assessee and without considering the merits of the case.
Sections Cited
271(1)(c), 147, 144
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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’: NEW DELHI
Before: SHRI G.S. PANNU & SHRI ANUBHAV SHARMA
Heard and perused the records.
In the captioned appeals an early Hearing Application is filed by the appellant on which Ld. AR has submitted that the appeals arise out of penalty proceedings u/s 271(1)(c) for AY 2009-10 and 2010-11 and the assessment orders for these assessment years were passed u/s 147/144 of the Income Tax Act 1961.
SA No. -147/Del/2024 Meter and Instruments Pvt. Ltd. 3. The Ld. AR submitted that as the notices were not served, adequate opportunity of hearing to the assessee was not given.,
As we go through the impugned orders, we observed that the first appeal was dismissed by the National Faceless Appellate Centre (NFAC) in a very superfluous manner, without even mentioning as to when and by what mode of notices of hearing were issued, and if at all assessee / appellant was served.
It also comes up that as First Appellate Authority (NFAC) has not at all touched the merits on the grounds. These aspects could not be defended at all by Ld. DR.
In the light of the aforesaid, we deem it appropriate to allow the appeals for and restore the issues on merits to the files of the Ld. CIT(A) for passing an order fresh after giving an adequate opportunity of hearing to the assessee.
Consequently, the appeals stand allowed, for statistical purpose, in terms of aforesaid direction and early hearing application becomes infructuous.
Order pronounced in the Open Court on 17 .05.2024