2024 (6) TMI 1205 - AT - Income Tax

Assessment order u/s. 144 passed ex parte - assessee submitted that the management of the company was not aware of the notices issued by both the authorities and the assessee company was also facing SARFAESI proceedings - HELD THAT - AO passed assessment order u/s. 144 and before the CIT(Appeals) there was no representation by the assessee. Assessee has submitted that during the assessment proceedings the assessee was facing SARFAESI proceedings and that the notice issued by the CIT(Appeals) was not served on the assessee on its registered email-id with the department and hence could not be represented by the assessee before the lower authorities. CIT(Appeals) has passed ex parte order. In the interest of justice, we remit the issues in appeal to the file of AO for fresh consideration and decision as per law after giving proper opportunity of being heard to the assessee. Assessee is directed to communicate its correct email-id, mobile no. etc. to the department and produce all necessary evidence in support of its case and not seek unnecessary adjournment for early disposal of the case - Assessee s appeal is allowed for statistical purposes.

Summary

Issues:
1. Condonation of delay in filing appeal.
2. Assessment proceedings and non-compliance by the assessee.
3. Lack of representation before authorities and request for fresh consideration.

Condonation of Delay in Filing Appeal:
The appeal was filed 295 days late, citing non-communication of the impugned order due to SARFAESI proceedings. The Tribunal, after considering the reasons presented, condoned the delay and admitted the appeal for adjudication.

Assessment Proceedings and Non-Compliance by the Assessee:
The assessee, engaged in the manufacture of basic iron and steel, declared a loss in the return of income. Despite statutory notices issued during assessment proceedings, the assessee did not respond, leading to the AO assessing a taxable income. The CIT(Appeals) confirmed the AO's order as the assessee failed to comply with the notices.

Lack of Representation Before Authorities and Request for Fresh Consideration:
The assessee claimed unawareness of notices due to SARFAESI proceedings and non-service of the CIT(Appeals) notice on the registered email-id. The Tribunal noted the lack of representation before the authorities and remitted the issues to the Assessing Officer for fresh consideration. The assessee was directed to provide correct contact details, necessary evidence, and avoid unnecessary adjournments for a fair decision.

In conclusion, the Tribunal allowed the assessee's appeal for statistical purposes, emphasizing the importance of proper representation, communication, and compliance in the assessment process.