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Facts
The assessee neither appeared during assessment proceedings nor appellate proceedings. The Assessing Officer (AO) framed the assessment under section 144 of the Act due to non-cooperation. The assessee's AR claimed notices were not received due to illiteracy, but the DR countered that the assessee had opportunities and filed appeals with a slight delay, implying awareness.
Held
The Tribunal, considering the AR's assurance of future cooperation, decided to restore the issue to the AO for fresh adjudication in the interest of justice and fair play. However, a cost of Rs. 5000 was imposed on the assessee for their negligent approach.
Key Issues
Whether the assessment order passed under Section 144 was justified given the assessee's non-appearance and claim of illiteracy, and whether a fresh opportunity should be granted.
Sections Cited
144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘B’ BENCH: BANGALORE
Before: SHRI WASEEM AHMED & SHRI SOUNDARARAJAN K
PER BENCH :
All these appeals filed by the assessee are against the order passed by the NFAC, Delhi all dated 11/06/2024 in DIN Nos. ITBA/ NFAC/S/250/2024-25/1065555187(1), ITBA/NFAC/S/250/ 2024-25/ 1065555787(1) and ITBA/NFAC/S/250/2024-25/1065555500 (1) for the assessment year 2017-18.
At the outset, it was noticed that the assessee neither appeared during the assessment proceedings nor during the appellate proceedings, therefore, the AO in the absence of any co-operation from the side of the assessee has framed the assessment u/s 144 of the Act,
ITA No.1646, 1647 & 1648/Bang/2024 Page 2 of 4
which was subsequently confirmed by the ld. CIT(A). At the time of hearing, the ld. AR submitted that all the notices were issued through the email by the authorities below, which were not received by the assessee being illiterate person. Accordingly, the assessee could not make the necessary compliances during the proceedings before the authorities below. However, the ld. AR before us has undertaken the responsibility for necessary compliance and accordingly prayed to set aside the issue to the file of the AO for fresh adjudication as per the provisions of law.
On other hand, the ld. DR submitted that the assessee was given various opportunities by the authorities below to represent his case, but the same were not availed by the assessee for the reason best known to him. The ld. DR also pointed out that the appeal was preferred by the assessee against the assessment order framed u/s 144 of the Act before the ld. CIT(A) with the delay of one day. Thus, it is implied that the assessee was aware of the order passed by the AO u/s 144 of the Act. Accordingly, the plea of the ld. AR that the assessee being illiterate was not aware of the notices issued by the authorities below was not tenable. As such, the ld. DR opposed to grant fresh opportunity to the assessee to represent his case before the AO. The ld. DR vehemently supported the orders of the authorities below.
We have heard the rival contentions of both the parties and perused the materials available on record. Considering the statement made by the ld. AR for the assessee across the bar for making the necessary compliances before the AO, we, in the interest of justice and fair play, are inclined to restore the issue to the file of the AO for fresh adjudication as per the provisions of law. It is also directed that the assessee shall extend full cooperation during the proceedings and shall
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ITA No.1646, 1647 & 1648/Bang/2024 Page 3 of 4
not seek any adjournment without just cause. Nevertheless, we impose a cost of Rs.5000/- on the assessee to be deposited with the Income-tax Department for his negligent approach for pursuing the matters before the authorities below. Hence, the gourd of appeal of the assessee is hereby allowed for statistical purposes.
4.1 In the result, the appeal of the assessee is allowed for statistical purposes.
Coming to ITA Nos.1647 & 1648/Bang/2024 for the assessment year 2017-18
The facts of the case on hand are identical to the facts of the case discussed above, therefore, respectfully following the same except imposing the penalty, the appeals of the assessee are hereby allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for statistical purposes.
In the combined result, all the appeals of the assessee are allowed for statistical purposes
Order pronounced in court on 19th day of November, 2024
Sd/- Sd/- (SOUNDARARAJAN K) (WASEEM AHMED) Judicial Member Accountant Member Bangalore Dated, November, 2024 / vms /
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ITA No.1646, 1647 & 1648/Bang/2024 Page 4 of 4
Copy to : 1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order Asst. Registrar, ITAT, Bangalore
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