BENOY PHILIP,ERNAKULAM vs. COMMISSIONER OF INCOME-TAX(APPEALS), NATIONAL FACELESS APPEAL CENTRE(NFAC) DELHI

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ITA 79/COCH/2024Status: DisposedITAT Cochin22 August 2024AY 2020-21Bench: SHRI SATBEER SINGH GODARA (Judicial Member), SHRI AMARJIT SINGH (Accountant Member)3 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the NFAC's order did not adjudicate the substantive grounds on merits as required. Therefore, the appeal was restored to the NFAC for fresh adjudication.

What were the facts?

The assessee's appeal for AY 2020-2021 was rejected by the NFAC due to continuous non-appearance. The NFAC passed an ex-parte order without deciding the substantive grounds on merits.

What were the issues?

Whether the NFAC properly adjudicated the substantive grounds of appeal on merits when passing an ex-parte order due to the assessee's non-appearance.

Which sections of the Income-tax Act were involved?

Section 272,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, COCHIN BENCH : COCHIN

Before: SHRI SATBEER SINGH GODARA & SHRI AMARJIT SINGH

Hearing: 20.08.2024Pronounced: 22.08.2024

This assessee’s appeal, for the assessment year 2020- 2021, arise against the CIT(A)-National Faceless Appeal Centre [in short the “NFAC”], Delhi, Delhi’s DIN & Order no.ITBA/NFAC/ S/250/2023-24/1059180571(1), dated 29.12.2023, in proceedings u/sec.272 of the Income Tax Act, 1971 (in short the "Act").

2 ITA.No.79/COCH./2024 Heard both the parties. Case file perused.

2.

It emerges during the course of hearing that the NFAC has noted the assessee’s continuous non-appearance in the lower appellate proceedings before rejecting the assessee’s contentions vide ex-parte order under challenge. Smt. Swarnalatha, Sr. DR could hardly dispute the clinching fact that the NFAC’s order has nowhere decided the assessee’s substantive grounds on merits as contemplated u/sec. 250(6) of the Act requiring it to give points for determination followed by a detailed adjudication thereof. Faced with this situation, we deem it appropriate in the larger interest of justice to restore the assessee’s instant appeal back to the NFAC for it’s afresh adjudication, preferably within three effective opportunities of hearing, subject to the rider that it shall be the taxpayer’s onus and responsibility only to plead and prove all the relevant facts in consequential proceedings. Ordered accordingly.

3.

This assessee’s appeal is allowed for statistical purposes in above terms.

Order pronounced in the open Court on 22.08.2024.

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