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Facts
The appeal arose from an order passed by NFAC, Delhi, for AY 2018-19. The assessee's representative submitted that the appeal was dismissed because the assessee had not appeared or been represented on various occasions, and that they were unaware of notices issued on ITBA, partly due to the chaotic atmosphere during the COVID period. The revenue opposed granting an excuse for ignorance.
Held
The tribunal acknowledged that ignorance is not an excuse but emphasized that justice requires no party to be unheard. It was noted that there was no proper representation before the NFAC. The tribunal opined that the assessee had not benefited from non-representation and had suffered due to prolonged litigation.
Key Issues
Whether the appeal should be remitted to the NFAC for fresh consideration due to lack of proper representation by the assessee.
Sections Cited
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Income Tax Appellate Tribunal, ‘A’ BENCH : BANGALORE
Before: SHRI CHANDRA POOJARI & SMT. BEENA PILLAI
ORDER PER BEENA PILLAI, JUDICIAL MEMBER Present appeal arises out of order dated 03.11.2023 passed by NFAC, Delhi for A.Y. 2018-19.
At the outset, the Ld.AR submitted that the NFAC dismissed the appeal as assessee had not appeared or represented the case
Page 2 of upon issuance of notices on various occasions. The Ld.AR submitted that assessee may be granted one more opportunity of being heard as assessee was not aware about the notices being issued on ITBA. Further it is submitted that the first notice was issued during the covid period and a chaotic atmosphere that persisted during the relevant period caused the inadvertence in vigilantly checking the emails.
On the contrary, the Ld.DR vehemently opposed the prayer of the Ld.AR by submitting that ignorance cannot be treated as a condition to grant excuse. We have perused the submissions advanced by both sides in the light of records placed before us.
We agree with the Ld.DR that ignorance is not an excuse before the eyes of law, however in order to render justice, no party shall be left unheard. We have heard the rival submissions and perused the materials available on record. In our opinion, there was no proper representation by the assessee before NFAC. Hence, the addition has been sustained by the Ld.CIT(A).
In our opinion, by non-representing before the Ld.CIT(A)/NFAC, the assessee has not derived any benefit. On the contrary, the assessee has suffered in view of the dragged litigations. Being so, in our opinion, it is appropriate to remit the issues in dispute to the file of the Ld.CIT(A)/NFAC for fresh consideration. The assessee is directed to file all relevant documents in support of the claims, which shall be verified by Page 3 of Ld.CIT(A)/NFAC in accordance with law. Needless to say that proper opportunity of being heard must be granted to the assessee. Accordingly, we remand the appeal to the Ld.CIT(A) with the direction to pass a detailed order on merits by granting proper opportunity of being heard to the assessee. We also direct the assessee to furnish all relevant details as called for. Accordingly, the grounds raised by 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 22nd March, 2024.