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Facts
The assessee's appeal was directed against an order of the NFAC. The assessee raised grounds on the merits of an addition sustained by the NFAC and an additional ground regarding the non-issue of a notice u/s 143(2). The respondent produced a copy of the notice u/s 143(2), leading to the dismissal of the additional ground.
Held
The Tribunal observed that the order of the CIT(A)/NFAC and the assessment order were passed ex-parte as the assessee failed to appear. Considering the circumstances, the Tribunal decided to remit the issue to the AO for fresh consideration. However, due to the assessee's failure to appear, a cost of Rs. 1,000/- was imposed.
Key Issues
Whether the additional ground regarding non-issue of notice u/s 143(2) is to be admitted? Whether the ex-parte order passed by NFAC and AO should be set aside and the issue remitted for fresh consideration?
Sections Cited
250, 143(2), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B’’ BENCH: BANGALORE
Before: SHRI WASEEM AHMED & SHRI YOGESH KUMAR U.S.
Assessment Year: 2017-18 Mohammed Kaleem M.K. Agarbatti Company Attarwadi Old Bazar Road ITO Sindhanur Vs. Ward-1 Sindhanur 584 128 Raichur PAN NO : BBQPK1637R APPELLANT RESPONDENT Appellant by : Sri Shreehari Kutsa, A.R. Respondent by : Sri Subamanian S., D.R. Date of Hearing : 19.08.2024 Date of Pronouncement : 21.08.2024 O R D E R
PER YOGESH KUMAR U.S. JUDICIAL MEMBER:
This appeal by assessee is directed against order of NFAC passed u/s 2017-18 dated 18.04.2024 passed u/s 250 of the Income Tax Act, 1961 (in short “The Act”).
The assessee raised various grounds on merit of the addition made by ld. AO sustained by NFAC. The assessee also raised additional grounds before us with regard to non-issue of notice u/s 143(2) of the Act.
At the time of hearing, the ld. D.R. produced a copy of the notice issued u/s 143(2) dated 24.09.2018 and also postal acknowledgement for having served the said notice to the assessee. As such, no argument has been put by the ld. A.R. before us. Accordingly, the additional ground of the assessee is dismissed.
Mohammed Kaleem, Sindhanur Page 2 of 2 4. Coming to the order of the ld. CIT(A)/NFAC which has been passed ex-parte and the assessment order is also passed u/s. 144 of the act wherein the assessee failed to appear before the Ld.AO. The Ld.Counsel submitted that if an opportunity is given to the assessee to appear before the Ld.AO to put forth the case, no hardship will be caused to the department or revenue. Considering the above facts and circumstances of the case, we are of the considered opinion that it is appropriate to remit the issue to the file of the Ld.AO for a fresh consideration. Ordered accordingly. At the same time, as the assessee failed to appear before the Ld.AO and also before the Ld.CIT(A), we are inclined to impose the cost of Rs. 1,000/- on the assessee which shall be paid to the Prime Minister Relief Fund and the proof of challan shall be produced before the ld.AO for due verification.
In the result, appeal of the assessee is partly allowed for statistical purposes.