2023 (6) TMI 439 - AT - Income Tax

Ex-parte order passed by CIT-A -NFAC - submission of assessee that the notices issued by CIT (A) NFAC through mail went to Spam for which he was not able to see the notices issued and remained unrepresented - submission of assessee that if given an opportunity, the assessee is in a position to substantiate his case by filing the requisite details - HELD THAT - We restore the issue to the file of the learned CIT (A) NFAC with a direction to grant one last opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to file the requisite details before the CIT (A) NFAC on the appointed date without seeking any adjournment under any pretext failing which the learned CIT (A) NFAC is at liberty to pass appropriate order as per law. Appeal filed by the assessee is allowed for statistical purposes.

Summary

Issues:
The judgment involves the ex-parte order dated 22/08/2022 of the learned CIT (A)-NFAC Delhi, relating to A.Y.2018-19.

Facts of the Case:
The assessee, an AOP engaged in widening and strengthening the existing National Highway, filed a return of income declaring total income at Rs. 1,15,96,950. The assessment u/s 143(3) was completed by the Assessing Officer on 23.4.2021, determining total income at Rs. 2,56,30,361 with an addition of Rs. 1,40,33,411 by disallowing various expenses.

Grounds of Appeal:
The assessee raised multiple grounds of appeal challenging the order of the Assessing Officer and the learned CIT (A)-NFAC. These grounds included contentions regarding the lawfulness of the order, the disallowed expenditure, and the failure to consider relevant accounts and payments made.

Arguments and Decision:
The learned Counsel for the assessee argued that non-receipt of notices led to non-compliance before the learned CIT (A)-NFAC. The assessee requested an opportunity to represent its case, citing issues with notices going to Spam. The learned DR opposed the submissions, highlighting the failure of the assessee to provide required details despite opportunities.

Judgment and Direction:
After considering the arguments and reviewing the orders, the Tribunal acknowledged the non-submission of details by the assessee before the learned CIT (A)-NFAC, leading to the ex-parte order. The Tribunal, in the interest of justice, restored the issue to the CIT (A)-NFAC, granting one last opportunity to the assessee to substantiate its case. The assessee was directed to file requisite details without seeking adjournment, with a warning of appropriate action for non-compliance. The appeal was allowed for statistical purposes.

Result:
The appeal filed by the assessee was allowed for statistical purposes, with the order pronounced in the Open Court on 8th June, 2023.