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Facts
The assessee filed a return of income which was later reopened, leading to additions under sections 69C and 69 of the Act. The CIT(A) issued multiple notices but the assessee did not comply, resulting in an ex-parte dismissal of the appeal.
Held
The Tribunal held that the CIT(A)'s order was passed ex-parte without discussing the merits, which violates principles of natural justice and Section 250(6) of the Act. The assessee should be given another opportunity to be heard.
Key Issues
Whether the CIT(A) order dismissing the appeal ex-parte without discussing merits is sustainable. Whether the assessee should be provided with another opportunity for hearing.
Sections Cited
147, 143(3), 144B, 69C, 69, 250(6)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘C’ BENCH: CHENNAI
Before: SHRI GEORGE GEORGE K & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2016-17 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 28.08.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 147 r.w.s 143(3) r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 22.03.2022.
The assessee is an individual and filed his return of income declaring total income of Rs. 9,95,400/- on 29.06.2017. Subsequently, the case was reopened and assessment was made assessing total income of Rs. 31,95,827/- by making addition u/s. 69C of the Act of Rs. 10.93.090/- and addition u/s. 69 of the Act of Rs. 9,40,937/-.
Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has issued six notices from 17.03.2023 to 29.07.2024 but the assessee has not complied with any of the notices and therefore, the Ld. CIT(A) has dismissed the appeal ex-parte.
The Ld. Authorized Representative (A.R) of the assessee before us has submitted the Ld. CIT(A) has dismissed the appeal without discussing the case on merits and without providing sufficient opportunity to the assessee and requested to provide one more opportunity to substantiate his case.
The Ld. Departmental Representative (DR), on the other hand, has relied on the orders of lower authorities.
We have heard the rival submissions, and perused the materials available on record. On perusal of the orders, we find that the order of Ld. CIT(A) is ex-parte without discussing the issue on merits which is not in consonance to section 250(6) of the Act. As per Section 250(6) of the Act, the Ld. CIT(A) is required to adjudicate the issue arising in the appeal on merit by stating the points for determination the decision thereon and the reason for the decision. We are of the opinion that keeping in view of the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the Ld. CIT(A). Accordingly, we set aside the order passed by the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to adjudicate this appeal afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 20th December, 2024.