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Facts
The assessee, RKG Finvest Ltd, appealed against ex parte assessment orders for AYs 2012-13 and 2013-14, which were passed under sections 147/143(3) of the Income-tax Act, 1961. The National Faceless Appeal Centre (NFAC) / CIT(A) had issued these ex parte orders without addressing the case on merits, despite having provided opportunities for hearing and granted adjournments to the assessee.
Held
The Tribunal restored the appeals to the file of the CIT(A) for de novo adjudication, instructing that the assessee must be given a reasonable opportunity to make their submissions. The ex parte orders by the CIT(A) were set aside for not deciding the case on merits. Consequently, the grounds raised by the assessee were allowed for statistical purposes.
Key Issues
The key issue was whether the CIT(A) was justified in passing an ex parte order without deciding the case on merits, despite having provided opportunities and granted adjournments to the assessee.
Sections Cited
Section 147 of Income Tax Act, 1961, Section 143(3) of Income Tax Act, 1961
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “F”: NEW DELHI
Before: SHRI KUL BHARAT & SHRI M. BALAGANESH
O R D E R PER M. BALAGANESH, A. M.: 1. The appeal in & 1072/Del/2023 for AYs 2012-13 and 2013- 14, arise out of the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 16.02.2023 against the order of assessment passed u/s 147/143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 25.01.2020 and 27.01.2020 by the Assessing Officer, DCIT, Circle-20 (2), New Delhi (hereinafter referred to as ‘ld. AO’).
Identical issues are involved in both the appeals and hence they are taken up together and disposed of by this common order for the sake of convenience.
At the outset, we find that the ld CIT(A) had passed an order ex parte without deciding the case on merits. Though, opportunities were indeed given by the CIT(A) to the assessee and adjournment petitions have been filed by the assessee before him which fact is also tabulated by the ld CIT(A) in pages 4 and Page | 1 5 of the order, the ld CIT(A) having granted adjournments had proceeded to dispose of the appeal ex parte without deciding the grounds on merits. Hence, we deem it fit and appropriate to restore these appeals to the file of the ld CIT(A) for de novo adjudication in accordance with law. Needless to mention that the assessee be given reasonable opportunity to make its submission. Accordingly, grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 04/04/2024.