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Facts
The assessee filed its return for AY 2015-16, which was subject to a scrutiny assessment under Section 143, leading to an addition for depreciation. Subsequently, an order under Section 263 was passed, resulting in a further addition by the AO. The assessee's appeal against the AO's order was dismissed ex parte by the Ld. CIT(A).
Held
The ITAT observed that the Ld. CIT(A) had passed an ex parte order against the assessee, violating principles of natural justice. Given that the Revenue had no objection to the assessee's request, the ITAT set aside the Ld. CIT(A)'s order and restored the matter for a fresh decision after affording the assessee a fair opportunity of hearing.
Key Issues
Whether the Ld. CIT(A) erred in passing an ex parte order without providing a fair opportunity of hearing, thereby violating the principles of natural justice.
Sections Cited
250, 143, 143(3), 263
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SHRI S RIFAUR RAHMAN & SHRI VIMAL KUMAR
ORDER
PER VIMAL KUMAR, JUDICIAL MEMBER:
The appeal filed by the assessee is against order dated 30.05.2024 of Learned Commissioner of Income Tax (Appeals)/National Faceless Assessment Centre (NFAC), Delhi (hereinafter referred as “the Ld. CIT(A)”) under Section 250 of the Income Tax Act, 1961 (hereinafter referred as “the Act”) arising out of order dated 17.12.2019 of the Learned Deputy Commissioner of Income Tax, Circle 2(1)(2), Bangalore (hereinafter referred as “the Ld. AO”) under Sections 143)(3) read with section 263 of the Act for assessment year 2015-16.
Brief facts of the case are that the appellant/assessee filed return of income on 30.11.2015 declaring income of Rs.7,15,71,427/- for assessment year 2015-16. Scrutiny assessment was completed on 12.06.2017 under Section 143 of the Act determining assessed income of Rs.7,21,89,253/- making an addition of Rs.6,17,796/- as disallowance excess claim of depreciation. Subsequently, order dated 29.05.2019 under Section 263 of the Act was passed. In compliance of the order dated 29.05.2019, addition of Rs.1,12,42,558/- was made vide order dated 17.12.2019 by the Ld. AO.
Against order dated 17.12.2019 of Ld.AO, the appellant/assessee preferred appeal before Ld. CIT(A) which was dismissed vide order dated 30.05.2024.
Being aggrieved, the appellant/assessee preferred present appeal.
Learned Authorised Representative for the appellant/assessee submitted that Ld. CIT(A) erred in passing ex parte order in violation of principles of natural justice. Copy of notice dated 12.03.2020 at page nos. 3 and 4 of paper books. Copy of intimation dated 04.11.2022 is at page no.5. Restoration of the matter to the file of the Ld. CIT(A) was prayed.
Learned Authorized Representative for Revenue had no objection.
From examination of record in light of aforesaid rival contentions, it is crystal clear that copy of notice dated 12.03.2020 from Ld. CIT(A) is at pages 3 and 4 of the paper books. Copy of intimation dated 04.11.2022 intimating enablement of communication window with National Faceless Assessment Centre is at page no.5. Ld. CIT(A) vide ex parte order upheld the order of Ld. AO. Appellant/assessee has requested for restoration of the matter to the file of Ld. CIT(A). Learned Authorized Representative for the Revenue has no objection. In view of above material facts, in interest of justice, it is expedient to set aside the order dated 30.05.2024 of Ld. CIT(A) and the matter is restored to the file of Ld. CIT(A) for fresh decision in accordance with law after affording fair opportunity of hearing to the appellant/assessee.