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Facts
The assessee failed to file a return of income for assessment year 2018-19. The Assessing Officer initiated proceedings under section 147 and completed the assessment ex parte after the assessee did not respond to notices. The CIT(Appeals) also dismissed the assessee's appeal ex parte.
Held
The Tribunal noted that the CIT(Appeals) passed an ex parte order without substantial discussion on merits, which did not comply with section 250(6) of the Act. The Tribunal also observed the assessee's lack of response and cooperation throughout the proceedings.
Key Issues
Whether the CIT(Appeals) erred in confirming the addition without giving a proper opportunity to the assessee and whether the orders passed were against the principles of natural justice.
Sections Cited
147, 148, 142(1), 133(6), 144, 144B, 250(6)
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Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI S. RIFAUR RAHMAN & SHRI SUNIL KUMAR SINGH
ORDER PER : SUNIL KUMAR SINGH, JUDICIAL MEMBER:
This appeal has been preferred by assessee against the impugned order dated 30.07.2024 passed in Appeal No. NFAC/2017-18/10258203 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) for the assessment year 2018-19, wherein the ld. CIT(Appeals) has dismissed assessee’s appeal ex parte.
Brief facts state that the appellant assessee did not file any return of income for the assessment year 2018-19. It was noticed by the Assessing Officer that the assessee had deposited a sum of Rs.1,25,45,000/- with Central Bank of India as well as received Rs.48,930/- as winning from lottery or crossword puzzle during the F.Y. 2017-18. The Assessing Officer, therefore, initiated proceedings u/s. 147 and issued notice dated 26.03.2022 u/s. 148 of the Act. Assessee neither complied with this notice nor filed any return of income in response thereof. Several statutory notices issued to the assessee u/s. 142(1) as well as notice u/s. 133(6) to the bank but remained un-responded. Therefore, the Assessing Officer completed the assessment u/s. 147 r.w.s. 144 r/w section 144B of the Act and assessed the assessee at total income at Rs.1,25,93,930/-, vide order dated 14.03.2023.
Aggrieved, assessee preferred first appeal before ld. CIT(Appeals), who dismissed assessee’s appeal ex parte.
Appellant assessee has filed this appeal on the ground that ld. CIT(Appeals) has erred in confirming the addition without giving proper opportunity to present his case and the order passed by the Assessing Officer was also against the principles of natural justice.
Perused the records and heard learned representative for assessee and learned Sr. DR for revenue.
Learned representative for assessee initially moved an application, seeking adjournment, but subsequently submitted that since no sufficient opportunity of hearing was provided before both the authorities below, the matter may be restored back to the file of Assessing Officer for passing a fresh order in accordance with law.
Learned Sr. DR has supported the impugned order.
We note that during the first appellate proceedings, notices were issued on 28.03.2024, 05.07.2024, 12.07.2024 and 22.07.2024 to the appellant assessee. However, the assessee filed no response. We further note that the ld. CIT(Appeals) has passed ex parte order merely supporting the assessment order etc. without any substantial discussion on merits, which is not in consonance with section 250(6) of the Act, whereas learned CIT(Appeals) was expected to state the points for determination, decision thereon and the reasons for the decision as provided u/s. 250(6) of the Act.
Perusal of assessment order also shows that due to irresponsive conduct of the assessee, learned Assessing Officer was compelled to pass best judgment assessment u/s. 147 r.w.s. 144 and sec. 144B of the Act. Such an irresponsive and reluctant conduct of the assessee cannot be 3 | P a g e appreciated. In the totality of facts and circumstances and in the interest of justice, we deem it just and proper to afford an opportunity of hearing to the appellant assessee to make his submissions before the Assessing Officer.
The matter is thus remitted back to the file of Assessing Officer for passing order afresh in accordance with law after taking assessee’s submissions into consideration. We further direct the assessee to be diligent and cooperative in attending the proceedings and making submissions before the learned Assessing Officer for the expeditious and effective disposal.
Needless to say that learned Assessing Officer shall ensure the observance of the principles of natural justice. The appeal is thus liable to be allowed for statistical proposes.
In the result, assessee’s appeal is allowed for statistical purposes.
The impugned order dated 30.07.2024 is set aside.