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Facts
The Assessee challenged an order passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) which dismissed their appeal ex-parte for Assessment Years 2012-13 and 2013-14. The Assessee had filed its return for AY 2013-14 and subsequently faced scrutiny and a disallowance.
Held
The Tribunal noted the Assessee's non-compliance and failure to provide documentary evidence before the lower authorities, leading to ex-parte orders. However, considering the facts and the need for substantial justice, the Tribunal decided to set aside the impugned order.
Key Issues
Whether the ex-parte dismissal of the Assessee's appeal by the lower authorities was justified, and if the case should be remanded for fresh consideration.
Sections Cited
250 of the Income Tax Act, 1961, 143(3) r.w.s. 92CA(3) of the Act, 40(a)(ia) of the Act
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI
Before: SHRI NARENDER KUMAR CHOUDHRY
Per : Narender Kumar Choudhry, Judicial Member:
These appeals have been preferred by the Assessee against the order even dated 19.06.2024, impugned herein, passed by the National Faceless Appeal Center (NFAC)/ Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short ‘the Act’) for the A.Y. 2012-13 & 2013-14.
Both the cases prima-facie appears to be identical, as the Ld. Commissioner in both the appeals under consideration has decided the appeals filed by the Assessee by passing ex-parte and therefore for the sake of brevity the same were heard together and are being disposed of by this composite order by taking into consideration the facts and circumstances of the case i.e. as a lead case and result of the same shall apply mutatis mutandis to both the appeals under consideration.
In the instant case, the Assessee had declared its total income of Rs.36,79,29,860/- by filing its return of income on 30.11.2013 for the AY under consideration, which was subsequently selected for scrutiny and ultimately resulted into passing the assessment order dated 28.12.2016 u/s 143(3) r.w.s. 92CA(3) of the Act, whereby the disallowance of Rs.3,01,13,070/- u/s 40(a)(ia) of the Act was made.
The Assessee, being aggrieved, challenged the said addition before the Ld. Commissioner, however, in spite of affording 9 opportunities except requesting for adjournment on 8 occasions eventually made no compliance. Therefore, in the constrained circumstances as the Assessee failed to file any documents in support of its claim and rebut the appeal of the Assessee by an ex-parte order and consequently affirmed the assessment order.
The Assessee, being aggrieved, is in appeal before us. Though the Assessee before us claimed for leniency, however, we observe from para- no.5.3 of the assessment order that the Assessee in order to substantiate its claim has also not produced any documentary evidences like invoices, debit notes etc. and therefore in the constrained circumstances the addition under challenge has been made by the Assessing Officer (AO).
From the orders passed by the authorities below, the conduct of the Assessee prima-facie appears to be non-compliant and therefore the Assessee is not entitled for any leniency. However, considering the peculiar facts and circumstances, as the authorities below in the absence of relevant evidence which the Assessee failed to file and in the absence of proper representation, failed to decide the issue under consideration in its right perspective and therefore for the just decision of the case and substantial justice and considering the conduct of the Assessee, we are inclined to set aside the impugned order, however, subject to deposit of Rs.25,000/- in the Revenue department. be entitled for any leniency in any circumstances.
Consequently, the case is remanded to the file of the Ld. Commissioner for decision afresh, suffice to say by affording reasonable opportunity of being heard to the Assessee, however, subject to the deposit of Rs.25,000/- in the Revenue Department within 30 days from the date of receipt of this order. In the result, the appeal {ITA No.4078/M/2024} filed by the Assessee stands allowed for statistical purposes.
In the result, both the appeals are allowed for statistical purposes on the same terms and conditions enumerated above.
Order pronounced in the open court on 26.11.2024.