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Facts
The assessee's appeal was dismissed in limine by the NFAC. The original assessment order was passed ex-parte under section 144 of the Act, with an addition of Rs. 3,45,00,000. The assessee contended that notices were not properly served.
Held
The Tribunal found that while the AO mentioned issuing notices under section 142(1), there was no evidence of actual service at the correct address. To ensure justice and fair play, the Tribunal decided to restore the appeal to the AO.
Key Issues
Whether the CIT(A)/NFAC erred in dismissing the appeal in limine without adjudicating on merits, and if proper service of notice was effected during the ex-parte assessment.
Sections Cited
144, 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘G’: NEW DELHI
Before: SHRI N.K. BILLAIYA & SHRI YOGESH KUMAR US
This appeal by the Assessee is preferred against the order dated 21.12.2022 by NFAC, Delhi, pertaining to A.Y. 2017-18.
The sum and substance of grievance of the assessee is that the CIT(A) / NFAC erred in dismissing the appeal of the assessee in limine without going into the merits of the case.
ITA No.- 389/Del/2023 Sunny Guglani 3. Representatives of both the sides were heard at length. The case records carefully perused.
Facts emanating from the assessment order show that the assessment order dated 17.12.2019 was framed ex-parte u/s 144 of the Act. Though, the AO has mentioned the details of notices issued u/s 142(1) of the Act which were not complied but there is no evidence to show that the impugned notices were actually served at the correct address. The AO was left with no choice but to make addition of Rs. 3,45,00,000/- which was confirmed by NFAC again by ex-parte order.
In the interest of justice and fair play, we deem it fit to restore the appeal to the files of the AO. The AO is directed to decide the issue afresh after properly serving a notice upon the assessee and after affording a reasonable and adequate opportunity of being heard.
In the result, appeal of the assessee is allowed for statistical purpose.
Order pronounced in the Open Court on 03.01.2024