MUSTANG TRADING & INVESTMENTS PVT. LTD.,,CHENNAI vs. DCIT, CC-4(1), CHENNAI
What did the Tribunal hold?
The ITAT set aside the CIT(A)'s ex-parte order and remitted the matter back for a fresh adjudication. The assessee was directed to appear before the CIT(A) to present their case.
What were the facts?
The assessee failed to appear before the CIT(A) despite opportunities, leading to an ex-parte order. The ITAT noted that appeals should ideally be decided on merits even if disposed of for non-prosecution.
What were the issues?
Whether an ex-parte order by the CIT(A) for non-appearance of the assessee should be set aside to provide an opportunity for a decision on merits.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, ‘D’ BENCH: CHENNAI
Before: SHRI SS VISWANETHRA RAVI & SHRI JAGADISH
M/s.Mustang Trading & The Dy. Commissioner of Investments Pvt. Ltd. Vs. Income Tax, 5th Eldorado, Floor, No.112, Corporate Circle-4(1), Nungambakkam High Road, Chennai. Chennai-600 034. [PAN: AAACM-4620-P] (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथF की ओर से/ Appellant by : None HIथF की ओर से /Respondent by : Shri G.Suresh, JCIT सुनवाई की तारीख/Date of Hearing : 24.06.2024 घोषणा की तारीख /Date of Pronouncement : 27.06.2024 आदेश / O R D E R PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2017-18 arises out of the order of Learned Commissioner of Income Tax, National Faceless Appeal Centre (NFAC), Delhi [hereinafter “CIT(A)”] dated 19-02-2024 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3) of the Act on 19.02.2024. :- 2 -:
When the appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. DR who pleaded for dismissal of the appeal as the assessee was remain negligent to appear before the Ld. CIT(A).
We have perused the materials available on record and find that the assessee has not appeared before the Ld. CIT(A), despite being given sufficient opportunities. The Bench has observed that the order passed by the Ld. CIT(A) ex-parte. It is a well settled principle of law by the decisions of various courts that, even though the appeal is disposed off for non-prosecution by the assessee, but such appeal should be disposed off on merits on the basis of materials available on record. 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, after giving reasonable opportunity to the assessee. 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. :- 3 -:
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 27th June, 2024. (यस यस िव"ने" रिव) (जगदीश) (Jagadish) (SS Viswanethra Ravi) "ाियक सद / Judicial Member लेखा लेखा सद"य लेखा लेखा सद"य सद"य /Accountant Member सद"य चे"ई/Chennai, "दनांक/Dated: 27th June, 2024. EDN/-
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