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Facts
The assessee filed its return showing Nil income after claiming deduction u/s 80P. The AO issued notices u/s 143(2) which were not complied with, leading to an order u/s 144 disallowing the deduction. The CIT(A) also dismissed the appeal after issuing notices that were not complied with.
Held
The Tribunal noted that the orders of the AO and CIT(A) were passed ex-parte due to non-compliance by the assessee. Considering the principles of natural justice, the Tribunal set aside the lower authorities' orders and remitted the matter back to the AO for fresh adjudication.
Key Issues
Whether the assessee was provided with sufficient opportunity to present their case before the lower authorities, and if not, whether the case should be remitted back to the AO for fresh consideration.
Sections Cited
144, 144B, 143(2), 80P, 1961
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) 2021-22 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 24.07.2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 144 r.w.s 144B of the Income-tax Act, 1961 (hereinafter “the Act”) dated 15.12.2022.
There is a delay of 31 days in filing the appeal by the assessee.
The assessee has filed condonation petition stating the reasons for delay in filing the appeal. We have considered the petition of delay in filing the appeal and satisfied that there was sufficient cause for not filing the appeal within the prescribed time limit. Hence, the delay is condoned accordingly.
The assessee has filed its return of income on 09.03.2022 by showing total income at Nil after claiming deduction u/s. 80P of the Act of Rs. 33,23,796/-. The A.O has issued various notices u/s. 143(2) of the Act which remain not complied and therefore, the A.O passed order u/s. 144 of the Act disallowing the claim u/s. 80P of the Act.
Aggrieved, the assessee preferred an appeal before Ld. CIT(A). On appeal, the Ld. CIT(A) has issued three notices from 05.12.2023 to 20.06.2024, but there is no compliances to the notices and therefore, the Ld. CIT(A) dismissed the appeal.
The Ld. Authorized Representative (A.R) of the assessee before us has contended that sufficient opportunity was not provided to the assessee either before A.O or before Ld. CIT(A) and both the orders have been passed ex-pare and therefore the case may be remitted back to the A.O for fresh consideration in the interest of justice.
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 of A.O as well as Ld. CIT(A), we find that the orders have been passed ex-parte for the non- compliance by the assessee. The Ld. A.R has submitted that the Ld. CIT(A) has not decided the issue on merits, therefore the case may be remanded back to the A.O for adjudication on merits. We are of the opinion that keeping in view the principles of natural justice, the assessee be provided with another opportunity of hearing to substantiate his case before the A.O. Accordingly, we set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the A.O to adjudicate this appeal afresh in accordance with law, after giving reasonable opportunity to the assessee. We also direct the Assessee to appear before the A.O on the date of hearing without fail and furnish complete details for his fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 20th December, 2024.