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Facts
The assessee's appeal is directed against an ex-parte order passed by the CIT(A)/NFAC for AY 2017-18. The assessee contended that the order was passed without proper opportunity of being heard, and the non-appearance was due to reasons beyond control. The Revenue argued that sufficient opportunities were provided.
Held
The Tribunal considered the rival submissions and found that the assessee deserved one more opportunity to contest the case before the CIT(A). The grounds of appeal were allowed for statistical purposes.
Key Issues
Whether the CIT(A) erred in passing an ex-parte order without providing adequate opportunity of being heard and proper findings on merits.
Sections Cited
68, 133A, 254(1)
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PER PAWAN SINGH, JUDICIAL MEMBER;
This appeal by assessee is directed against the order of learned CIT(A)/National Faceless Appeal Centre, Delhi dated 21.08.2025 for assessment year (AY) 2017-18. The assessee has raised following grounds of appeal:
“1. On the facts and circumstances of the case, the order passed by National Faceless Appeal Centre (NFAC) is bad both in the eye of law and on facts.
2. i) On the facts and circumstances of the case, the NFAC has erred both on facts and in law in passing the order without giving assessee an opportunity of being heard in violation of principle of natural justice.
ii) That the non appearance on the last date of hearing before the NFAC was for the reasons beyond the control of the assessee.
3. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in passing the order without giving a proper finding on the merits of the case.
4. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in confirming the addition of Rs.36,70,229/- made by AO on account of undisclosed turnover u/s 68 of the Income Tax Act.
5. On the facts and circumstances of the case, the NFAC has erred both on facts and in law in confirming the addition made u/s 68, ignoring that the said section is not applicable in the facts and circumstances of the present case.”
Rival submissions of both the parties have been heard and record perused.
The learned Authorized Representative (AR) of the assessee submits that the ld. CIT(A) passed ex-parte order without giving reasonable and sufficient opportunity. The ld. AR of the assessee fairly submits that hearing was fixed by the ld. CIT(A) on four occasion out of which the assessee sought adjournment on three occasions, such fact is recorded in para-4 in sub-para- 4.1 of the order. However, on fourth occasion, the assessee could not file adjournment application, resultantly, the ld. CIT(A) passed the ex-parte order. The ld. AR of the assessee submits that one more opportunity may be given to the assessee to contest the case on merit and the matter may be restored back to the file of the ld. CIT(A).
On the other hand, the ld. Senior Departmental Representative (Sr DR) for the Revenue submits that more than reasonable opportunity was allowed to the assessee. The assessee failed to avail such opportunities. Thus, the assessee does not deserve any further leniency for seeking restoration of case by ld. CIT(A) afresh.
I have considered the rival submissions of both the parties and have gone through the orders of lower authorities carefully. I find that during the assessment, the assessing officer made addition under section 68 of the Act on the basis of statement recorded and the material impounded during survey action carried out under section 133A of the Act on the premises of the assessee. Before the ld. CIT(A), the assessee in its adjournment application made prayer that they are seeking inspection of impugned material which was the basis of addition under section 68, copy of such application for inspection of assessment record was also furnished along with adjournment application. Considering the overall facts and circumstances of the case, I am of the view that the assessee deserves one more opportunity to contest its case before the ld. CIT(A). Hence, the grounds of appeal raised by the assessee are allowed for statistical purpose.
In the result, appeal of the assessee is allowed for statistical purpose. Order was pronounced in the open Court on 01st December, 2025 at time of hearing.