Loading judgment…
Facts
The assessee carried forward excessive losses for AY 2009-10. The Assessing Officer disallowed a portion of these losses. The First Appellate Authority (FAA) dismissed the assessee's appeal ex-parte.
Held
The Tribunal noted that the assessment order and the FAA's order were both passed without the assessee's appearance. Therefore, to provide a reasonable opportunity, the FAA's order was set aside.
Key Issues
Whether the ex-parte assessment and appellate orders, passed without affording sufficient opportunity to the assessee, are sustainable?
Sections Cited
148, 144, 148/144, 144 r.w.s. 148
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH ‘DB’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
Date of Hearing 02.04.2025 Date of Pronouncement 02.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against an ex-parte order dated 02.01.2025 of Addl./JCIT(A)-1, Bengaluru (First Appellate Authority) (hereinafter referred to ‘FAA'), relating to Assessment Year 2009- 10 arising out of order u/s 148/144 of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 30.11.2016 passed by the Assistant Commissioner of Income Tax, Circle-1, Gwalior.
None appeared on behalf of the assessee. However, the appeal is being decided after hearing the ld. Sr. DR and on the basis of material available on record.
Brief facts of the case:-The assessment in this case, was completed u/s 148/144 of the Act. The Assessing Officer had reopened the assessment on the ground that for AY 2009-10, the assessee had carried forward excessive losses to the extent of Rs.6,78,84,879/- with the potential tax effect of Rs.2,03,56,464/-. The details of carry forward losses are mentioned at page no.2 and 3 of the assessment order. The Assessing Officer disallowed a sum of Rs.3,60,80,773/-, Rs.1,51,24,131/- and Rs.1,66,59,975/- on account of wrong carry forward losses, which was set of in the AY 2009-10.
Aggrieved with the said order, the assessee preferred appeal before the Ld. FAA. The ld. FAA dismissed the appeal of the assessee on the ground that despite opportunities given to the assessee, failed to appear before the ld. FAA and confirmed the finding of the Assessing Officer.
Aggrieved with the said order, the assessee is in appeal before us.
We have heard both the parties. In this case, it is seen that the assessment order was passed u/s 144 r.w.s. 148 of the Act. Similarly, the appeal of the assessee was dismissed ex-parte by the FAA. Therefore, the matter has been decided without appearance of the assessee and the loss claimed by the assessee has been disallowed. We, therefore, in the interest of justice, set-aside the order of the FAA and restore the matter to his file to pass an order afresh after giving a reasonable opportunity of being heard to the assessee. Further, the assessee is also directed to appear before the FAA. Accordingly, grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 2nd April, 2025.