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Facts
The assessee's appeal was directed against an ex-parte order passed by the CIT(A) due to non-response to five notices. The assessee claimed they were given only five days to respond to a proposal to treat MEIS incentive as income, and thus could not furnish necessary documents.
Held
The Tribunal noted that the assessee failed to respond to multiple hearing notices despite having an email ID on record. However, considering the short time given to respond and in the interest of justice, the matter was remanded for fresh consideration.
Key Issues
Whether the ex-parte order passed by CIT(A) was justified, and if the matter should be remanded for fresh adjudication due to short response time.
Sections Cited
250, 2(24)(xviii)
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Income Tax Appellate Tribunal, ‘C’ BENCH, CHENNAI
Before: SHRI GEORGE GEORGE KAND SHRI JAGADISH
O R D E R
PER GEORGE GEORGE K, VICE PRESIDENT:
This appeal at the instance of the assessee is directed against CIT(A) - NFAC order dated 27.08.2024, passed under section 250 of the Income Tax Act, 1961 (hereinafter called ‘the Act’). The relevant Assessment Year is 2020-21.
At the very outset, we notice that the CIT(A) has passed an ex-parte order. The reason for passing an ex-parte order is that
3. The ld.AR submitted that the assessee did not take note of the hearing notices issued from the office of the First Appellate Authority and hence, proceedings before the CIT(A) remained ex-parte. It was submitted that the AO has given only five days time to respond to the proposal for treating the MEIS incentive as income u/s.2(24)(xviii) of the Act. Hence, the necessary documents could not be furnished before the completion of the assessment order. Therefore, it was prayed in the interest of justice, the issues raised in this appeal may be restored to the files of the AO.
The ld.DR submitted that the assessee had furnished its e-mail id before the CIT(A) in Form No.35 and also before the Tribunal in Form No.36. It was submitted by the ld.DR that the assessee had failed to represent the case before the First Appellate Authority and there is no justifiable reason for the same. Therefore, it was submitted that the appeal of the assessee may be dismissed.
4. We have heard rival submissions and perused the material on record. The CIT(A) has passed ex-parte order since assessee had failed to respond to notices issued from the office of the First Appellate Authority. We notice that five hearing notices have been issued from the office of the First Appellate Authority. However, there was no response to the same till the CIT(A) passed the impugned order on 27.08.2024. The e-mail id for communication that was mentioned in the Form 35 furnished before the CIT(A) was the assessee’s own e-mail id. The assessee does not have the case that it has not received any of the notices issued from the office of the First Appellate Authority. However, in the interest of justice and equity, we are of the view that the matter needs to be remanded for fresh consideration subject to payment of cost of Rs.5,000/- (rupees five thousand only) to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras within a month’s time from the date of receipt of this order.
Since assessee was granted only five days time to respond to the proposal by the AO and assessee having not filed necessary evidence in support of its case, we deem it appropriate to restore the issue raised in this appeal to the files of the AO. The assessee shall furnish the receipt evidencing the payment of cost of Rs.5,000/- before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall dispose the matter after affording reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate with the Revenue and shall not seek unnecessary adjournment. It is ordered accordingly.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 20th December, 2024 at Chennai.