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Facts
The assessee's appeal was directed against an ex-parte order passed by the CIT(A) confirming the disallowance of expenditure. The assessee claimed they could not present their case due to circumstances beyond their control.
Held
The Tribunal noted that the assessee was not given an opportunity to present their case before the Assessing Officer. Therefore, in the interest of natural justice, the matter was remanded to the Assessing Officer for fresh consideration.
Key Issues
Whether the CIT(A) was justified in confirming the Assessing Officer's ex-parte order, and whether the assessee was provided with adequate opportunity to present their case.
Sections Cited
143(3), 144B
AI-generated summary — verify with the full judgment below
Before: Shri S.S. Viswanethra Ravi & Shri S.R. Raghunatha
Year: 2020-21 NTN Bearing India Pvt. Ltd., Vs. The Assistant Commissioner of C/o DURV and Associates LLP, Income Tax, No. 10/80, AVM Avenue, 3rd Street, Corporate Circle 4(1), Virugambakkam, Chennai 600 092. Chennai. [PAN:AADCN8561B] (अपीलाथ�/Appellant) (��थ�/Respondent) अपीलाथ� की ओर से / Appellant by : Shri S. Dwarakesh, CA ��थ� की ओर से/Respondent by : Ms. Gouthami Manivasagam, JCIT सुनवाई की तारीख/ Date of hearing : 22.10.2024 घोषणा की तारीख /Date of Pronouncement : 29.10.2024 आदेश /O R D E R
PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:
This appeal filed by the assessee is directed against the order dated 30.04.2024 passed by the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre [NFAC], Delhi for the assessment year 2020-21.
The assessee raised 9 grounds of appeal amongst which, the only issue emanates for consideration as to whether the ld. CIT(A) is justified in confirming the order of the Assessing Officer exparte of the assessee.
3. We note that the assessment was completed under section 143(3) r.w.s. 144B of the Income Tax Act, 1961 [“Act” in short]. The Assessing Officer under scrutiny proceedings made disallowance of expenditure as discussed therein at para 3.3 of the assessment order. Having aggrieved by the order of the Assessing Officer, the assessee challenged the same before the ld. CIT(A). The ld. CIT(A) discussed the issue of addition made on account of disallowance of expenditure in para 1 of the impugned order. According to the ld. CIT(A), the assessee, inspite of receipt of notice neither submitted any written submissions nor any documentary evidence, thereby, proceeded to confirm the order of the Assessing Officer.
The ld. AR Shri S. Dwarakesh, CA drew our attention to paper book containing pages 204 and submits that the assessee could not place on record before the ld. CIT(A) due to the circumstances beyond its control and prayed to remand the matter to the file of the Assessing Officer for fresh consideration. The ld. AR further submits that the assessee is now ready to prosecute its case before the Assessing Officer with all relevant details of expenditure.
On perusal of the assessment order and the impugned order, we note that there was no opportunity for the assessee before the Assessing Officer. Therefore, taking into consideration the material evidence as furnished in the form of paper book as well as in the interest of natural justice, we deem it proper to remand the matter to the file of the Assessing officer for fresh consideration. The assessee is at liberty to furnish complete details to substantiate its case before the Assessing Officer. Thus, the grounds raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on 29th October, 2024 at Chennai.