What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal and, in the interest of natural justice, restored the matter to the AO for a fresh assessment. The assessee was directed to substantiate its case and provide requisite information.

The assessee's appeal arises from an ex-parte order by the CIT(A) confirming an addition of Rs. 18.91 Lacs made by the AO on a best judgment basis. The assessee had not appealed before any lower authorities and sought another opportunity for hearing.

What were the issues?

Whether the assessee should be granted another opportunity to present its case before the AO, despite prior negligence and ex-parte orders.

Arunagiri, Tiruvannamalai vs ITO | ITAT Chennai 2024

Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI MANU KUMAR GIRI, JM

O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee arises out of an ex-parte order passed by Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi [CIT(A)] on 29-03-2023 in the matter of an assessment framed by Ld. Assessing Officer [AO] on best judgment basis u/s 144 of the Act on 12-12-2019. The registry has noted a delay of 282 days in the appeal, the condonation of which has been sought by Ld. AR on the strength of affidavit of the assessee.

Considering the contents of affidavit and period of delay, the delay is condoned and we proceed with disposal of the appeal on merits.

It could be seen that the assessee has failed to appeal before any of the lower authorities. In the assessment order, Ld. AO made addition of cash deposit of Rs.18.91 Lacs. The Ld. CIT(A) confirmed the same against which the assessee is in further appeal before us. The 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 restore the matter back to the file of Ld. AO for fresh 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.

The appeal stand allowed for statistical purposes. Order pronounced on 20th May, 2024.

ARUNAGIRI,TIRUVANNAMALAI vs. ITO, WARD 1, TIRUVANNAMALAI

What did the Tribunal hold?

What were the facts?

What were the issues?

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