SUMANT KUMAR TIWARY HUF,JAMSHEDPUR vs. INCOME TAX OFFICER - 3(1), JAMSHEDPUR

This appeal arises from order dated 11.01.2024, passed u/s 250 of the Income Tax Act, 1961 (hereafter “the Act”) by the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) [hereafter “the Ld. CIT(A)].

Brief facts of the case are that the assessee is a HUF, filed its return of income for AY 2018-19 by declaring total income of Rs. 1,02,000/-. The case of the assessee was selected for scrutiny under CASS with the reason that large agricultural income in comparison to the total income declared by the assessee. Accordingly, notice u/s 143(2) and 143(1) of the Act was issued. Since there was no compliance on the part of the assessee, therefore, the Ld. AO passed an order u/s 143(3) read with section 143(3A) & 143(3B) of the Act by determining the total income of the assessee at Rs. Sumant Kumar Tiwari, HUF 40,52,000/-. Aggrieved by the above order, assessee preferred an appeal before the Ld. CIT(A), where the appeal of the assessee was dismissed by upholding the order of Ld. AO due to non-prosecution on various dates.

Dissatisfied with the above order, the assessee is in appeal before this Tribunal. At the time of hearing, the Ld. AR fairly stated that the impugned order passed by the Ld. CIT(A) is an exparte order therefore, another opportunity may be given to the assessee so that the assessee may contest the case properly before the Ld. CIT(A) by furnishing supported documents in order to substantiate its claim.

On the other hand, Ld. DR did not object to such prayer made by the assessee. However, he stated that the assessee may be directed to comply to the notices issued by the Ld. CIT(A) in remand proceeding.

We after hearing the rival submissions of the parties and perusing the material available on record. We find that in the present case of the assessee, the impugned order passed by the Ld. CIT(A) is an exparte order, and without going into the merits of the case, therefore, interest of justice and fair play, it is necessary to remand back to the whole issue to the file of Ld. CIT(A) with a direction to re-examine the issue afresh after affording a reasonable opportunity of being heard to the assessee. The assessee is further directed to duly comply to the notices issued by the Ld. CIT(A) and extend full cooperation in the remand proceedings.