SUDESHNA PRADHAN,HALDIA vs. A.C.I.T., CIRCLE - 27(1), HALDIA, HALDIA

This appeal filed by the assessee pertaining to the Assessment Year (in short ‘AY’) 2017-18 is directed against the order passed u/s 250 of the Income Tax Act, 1961 (in short the ‘Act’) by ld. Commissioner of Income-tax (Appeals)- NFAC, Delhi [in short ld. ‘CIT(A)’] dated 16.10.2023.

The ld. D/R submitted that the assessee is a habitual defaulter and has failed to comply with the notices issued during the assessment and appellate proceedings. The assessment order passed u/s 144 of the Income Tax Act, 1961 (in short the 'Act') was based on best judgment, as assessee did not provide the necessary information. Even before ld. CIT(A) the assessee did not turn up, resulting in dismissal of the appeal by the ld. CIT(A) on ex-parte basis. The ld. D/R further pointed out that ld. CIT(A) issued several notices which are recorded in ld. CIT(A)’s order particularly in para 5. However, despite these notices the assessee did not respond. Therefore, ld. CIT(A) had no alternative but to pass the order ex-parte.

We after hearing the submission of the ld. D/R and perusing the material available on record, we find that the assessee has failed to appear at multiple stages of the proceedings both at the assessment stage and before ld. CIT(A). Despite several notices being sent to the assessee, it did not comply with requirements which led to ex-parte orders. However, in the interest of justice and fair play, we believe that assessee should be given another opportunity to present its case. Denying the assessee the opportunity to be heard may lead to a miscarriage of justice. Therefore, it is necessary to remand the matter back to the ld. CIT(A) for re-examination of the issues after providing a reasonable opportunity to the assessee to be heard, In the light of the above, we set aside the ex-parte order passed by ld. CIT(A) and remand the matter back to the ld. CIT(A) with a direction to re-examine the issue after affording the assessee a proper opportunity of being heard. In terms of the above, appeal of the assessee is allowed for statistical purposes.