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Facts
The assessee's appeal arose from an ex-parte order passed by the NFAC, Delhi. The assessee claimed that they could not appear due to a change in auditor and that the notices were not received, submitting an affidavit to this effect. The Ld.AR argued for a remand to the Ld.CIT(A) for consideration on merits, stating there was no malafide intention.
Held
The Tribunal noted from the assessee's affidavit that there was no malafide intention for non-appearance before the Ld.CIT(A). In the interest of justice, the Tribunal deemed it appropriate to remand the issue back to the Ld.CIT(A), ensuring a proper opportunity of being heard is granted.
Key Issues
Whether the appeal should be remanded to the Ld.CIT(A) for fresh consideration due to the assessee's ex-parte non-appearance, which was attributed to a change in auditor and non-receipt of notices.
Sections Cited
Section 250 of the Income Tax Act, 1961
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Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE
Before: SMT. BEENA PILLAI & SHRI LAXMI PRASAD SAHU
ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal arises out of order dated 14.05.2024 passed by NFAC, Delhi for A.Y. 2014-15.
At the outset, the Ld.AR submitted that the order passed by the Ld.CIT(A) is an ex-parte order since assessee did not get opportunity to represent its case. It is submitted that the first 3 notices issued to the assessee was during the covid period and thereafter four notices were issued during 2024 which the assessee could not receive due to the change of the auditor. The assessee has filed an affidavit to that effect explaining the circumstances which is scanned and reproduced as under:
2.1. He prayed that the assessee was under a bonafide belief that, the notices were attended by the erstwhile auditor. He thus prayed that there is no malafide intention attributable to the assessee in non-appearance. The Ld.AR thus prayed for the appeal to be remanded to the Ld.CIT(A) to be considered on merits.
2.2. On the contrary, the Ld.DR though vehemently opposed the submission was of the opinion that the issues should be decided on merits. We have perused the submissions advanced by both sides in the light of records placed before us.
3. From the affidavit filed by the assessee, it is noted that there does not arise any malafide intention on behalf of the assessee in not appearing before the Ld.CIT(A). In the interest of justice, we deem it appropriate to remand this issue back to the Ld.CIT(A). Needless to say that proper opportunity of being heard must be granted to assessee and the Ld.CIT(A) shall pass a detailed order on merits after considering the submissions of the assessee.
3.1. Accordingly, the appeal is remanded to the Ld.CIT(A) to pass an order to decide the merits of the case by passing a detailed order.
Accordingly, the grounds raised by the assessee stands partly allowed for statistical purposes. In the result, the appeal filed by the assessee stands partly allowed for statistical purposes. Order pronounced in the open court on 14th August, 2024.