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Facts
The assessee, a non-filer, was issued notices under sections 148 and 142(1) of the Income-tax Act for purchasing mutual fund units and having income, which went un-responded. The Assessing Officer made additions and initiated penalty proceedings. The CIT(Appeals) dismissed the assessee's appeals.
Held
The tribunal noted that the CIT(Appeals) passed ex-parte orders without discussing the merits. While the assessee's conduct of not responding to notices was not appreciated, the tribunal decided to provide a last opportunity in the interest of justice.
Key Issues
Whether the CIT(Appeals) erred in passing ex-parte orders without affording a reasonable opportunity of hearing and without discussing the merits of the case.
Sections Cited
250(6), 147, 144, 271(1)(c), 148, 142(1), 192A
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
ORDER Per Sunil Kumar Singh, Judicial Member: These appeals have been preferred by assessee against the impugned orders dated 04.06.2024 passed in Appeals No.CIT(A), Gwalior/10086/2018- 19 and CIT(A), Gwalior/10085/2018-19 by the Ld. Commissioner of Income- tax (Appeals), NFAC, Delhi u/s. 250(6) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), wherein the ld. CIT(Appeals) dismissed both the first appeals against the assessment order 28.11.2017 passed u/s. 147/144 and penalty order dated 30.05.2018 passed u/s. 271(1)(c) of the Act.
Brief facts state that the assessee is a non-filer. On the basis of AIR information that the assessee had purchased units of SBI mutual Fund of Rs.5,00,000/- and had also income u/s. 192A of the Act of Rs.1,90,550/-, the Assessing Officer issued notice u/s. 148 of the Act to verify the same, which stood un-responded on behalf of the assessee. Statutory notices u/s. 142(1) o issued by Assessing Officer were also not responded by the assessee. The Assessing Officer, therefore, made addition amounting to Rs.6,90,550/- vide assessment order dated 28.11.2017 passed u/s. 147/144 of the Act and also initiated penalty proceedings u/s. 271(1)(c) of the Act imposing a penalty or Rs.2,13,400/- vide order dated 30.05.2018
Aggrieved, the assessee preferred appeals before the learned CIT(Appeals) who confirmed the addition made and penalty imposed by the learned Assessing Officer and dismissed assessee’s both first appeals.
We have perused the records and heard learned representatives for the assessee and the Revenue.
Learned representative for the assessee has submitted that the impugned orders has been passed by the ld. CIT(Appeals), ex parte without affording reasonable opportunity of hearing to the assessee. Prayed to set aside the impugned orders.
Learned DR has submitted that the assessee was provided sufficient opportunity of hearing by learned CIT(Appeals) on various occasions, but for no avail. Learned DR has supported the impugned order.
It transpires from the perusal of records that the assessee did not comply with various notices issued by the Assessing Officer. We further notice that the assessee also did not respond to the notices issued by the first appellate authority. Such an irresponsive conduct of the assessee cannot be appreciated. It is however noticed that learned CIT(Appeals) passed ex-parte impugned orders without any discussion on the merits of the case, 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. In the circumstances and in the interest of justice and fair play, we deem it just and appropriate to afford last opportunity to the assessee and remit the matter back to the file of learned CIT(Appeals) for adjudication on merits. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the learned CIT(Appeals) for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned CIT(Appeals) shall ensure the observance of the principles of natural justice. Both the appeals deserve to be allowed accordingly. 3 | P a g e
In the result, both the appeals of assessee are allowed for statistical purposes. The impugned orders dt. 04.06.2024 are set aside.
Order pronounced in the open court on 04.04.2025.