What did the Tribunal hold?

The Tribunal, while noting the assessee's negligence, granted another opportunity for hearing based on the principle of natural justice. The impugned order was set aside, and the assessment was restored to the Assessing Officer for a de novo assessment.

The assessee failed to appear before the lower authorities, leading to an ex-parte assessment order. The assessee then filed an appeal with a delay, which was condoned.

What were the issues?

Whether the assessee should be granted another opportunity to present its case before the Assessing Officer despite previous non-compliance.

Thiruvarur Medical Centre (P)… vs ACIT | ITAT Chennai 2024

Income Tax Appellate Tribunal, “A” BENCH, CHENNAI

Before: HON’BLE SHRI ABY T. VARKEY, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee for Assessment Year (AY) 2017-18 arises out of an ex-parte order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 27-12-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 24- 12-2019. The assessee has failed to appear before any of lower authorities. The registry has noted a delay of 29 days in the appeal, which stand condoned.

During hearing, Ld. AR has pleaded for another opportunity of hearing which has been opposed by Ld. Sr. DR.

Though the assessee has remained negligent, however, keeping in mind the principle of natural justice, we deem it fit to grant another opportunity to the assessee to substantiate its case. Therefore, we set aside the impugned order and restore the assessment back to the file of Ld. AO for de novo assessment after affording reasonable opportunity of hearing to the assessee. The assessee is directed to substantiate its case and supply the requisite information forthwith failing which Ld. AO shall be at liberty to proceed with assessment on merits on the basis of material on record. 4. The appeal stand allowed for statistical purposes. Order pronounced on 3rd June, 2024 (ABY T. VARKEY) (MANOJ KUMAR AGGARWAL) "ाियक सद" /JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER चे4ई Chennai; िदनांक Dated :03-06-2024 DS आदेशकीJितिलिपअ'ेिषत/Copy of the Order forwarded to : 1. अपीलाथ"/Appellant 2. " थ"/Respondent 3. आयकरआयु=/CIT, Trichy 4. िवभागीय"ितिनिध/DR 5. गाडBफाईल/GF

THIRUVARUR MEDICAL CENTRE (P) LTD.,THIRIVARUR vs. ACIT, CIRCLE-2(1), TRICHY

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