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Facts
The assessee appealed against an ex-parte order of the CIT(A) for the AY 2016-17, which confirmed an assessment made by the AO under section 144 of the Income Tax Act. The CIT(A) issued the ex-parte order after rejecting the assessee's requests for adjournment, despite the assessee raising a preliminary issue of jurisdiction and seeking time for document compilation.
Held
The Tribunal acknowledged lapses on the assessee's part but, in the interest of substantial justice, allowed the appeal for statistical purposes. The matter was restored to the Assessing Officer for a fresh decision in accordance with law, with a direction for the assessee to cooperate and provide all necessary details.
Key Issues
Whether the ex-parte assessment confirmed by CIT(A) should be set aside and remanded to the AO for fresh adjudication, considering the assessee's non-compliance and jurisdictional claims.
Sections Cited
Section 144 of the Income Tax Act, 1961, Section 124(4) of the Act
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Income Tax Appellate Tribunal, DELHI BENCH, ‘F’: NEW DELHI
Before: SHRI AMIT SHUKLA & SHRI M. BALAGANESH
ORDER PER AMIT SHUKLA, JM,
The aforesaid appeal filed by the assessee is against order dated 15.05.2023, passed by the learned Commissioner of Income Tax (Appeals)-23, New Delhi, for the quantum of assessment passed under section 144 of the Income Tax Act, 1961 (hereinafter the Act) for Assessment Year 2016-17.
Before us, the learned counsel for the assessee submitted that here in this case, the appeal has been decided ex-parte by the learned CIT(A), because the assessee had raised preliminary issue of jurisdiction and requested for the copy of order u/s 124(4) of the Act passed by CIT(Exemption) for determining the jurisdiction in this case, which was made available. Further, the assessee had been seeking adjournment, which has been rejected n by the Ld. CIT(A).
Accordingly, the ld. CIT (A) has passed ex-parte order confirming the order of the Assessing Officer which again was passed under section 144 of the Act.
Before us, 1d. DR submitted that even before the Assessing Officer, proper compliance has not been made, therefore, the Assessing Officer was constrained to pass order under section 144 of the Act. Therefore, if at all the matter is restored or set-aside then the same should be restored back to the file of the Assessing Officer.
After considering the material placed on record, we find that though in response to various queries, the assessed replied before the Assessing Officer. However, according to the Assessing Officer, complete information and details were not submitted. However, before the learned CIT (A), despite several notices, the assessee has not responded except for seeking adjournment on the ground that they are in process of compilation of paper book and drafting of written submissions. Prima facie, there are some latches on the part of the assessee, however, in the interest of substantial justice, we deem fit that all the issues raised by the assessee should be restored back to the file of the Assessing Officer to decide afresh in accordance with law and assessee is also directed to cooperate with the AO in the proceedings and to file the relevant details and explanation as required by the Assessing Officer. Accordingly, the matter is restored back to the file of the Assessing Officer.
In the result, the appeal of the assessee stands allowed for statistical purposes.
Order pronounced in the open court on 04th March, 2024.