In a recent ruling, the Income Tax Appellate Tribunal (ITAT), Bangalore Bench set aside the order passed by the Commissioner of Income Tax (Appeals), CIT(A) and granted the assessee, a fresh opportunity to present his case. The decision came in response to an appeal filed by the assessee against the order of the National Faceless Appeal Centre (NFAC), Delhi, dated August 16, 2024, for the assessment year 2015-16.
The assessee, Mohammed Amer Ul Haq, a proprietor of New Royal Chailya Stores in Bidar, had approached the ITAT after the CIT(A) confirmed the Assessing Officer’s (AO) order without considering any submissions from the assessee. The primary reason cited for the non-compliance was the non-receipt of emails and notices, which led to the absence of representation before the appellate authority.
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During the hearing, the counsel for the assessee, argued that the non-compliance was unintentional and beyond the control of the assessee. He further emphasized that the assessee was now fully prepared to comply with all procedural requirements and requested a fresh adjudication before the CIT(A), citing the principles of natural justice. The counsel contended that the assessee should not be denied the right to be heard, especially when there was no deliberate attempt to evade the proceedings.
On the other hand, the Departmental Representative (DR) defended the CIT(A)’s decision, arguing that multiple opportunities had been given to the assessee to respond. He maintained that the appeal should be dismissed as the assessee had failed to show sufficient cause for the previous non-compliance.
After carefully considering the arguments from both sides, the ITAT Bench comprised of Prakash Chand Yadav(Judicial Member) and Waseem Ahmed(Accountant Member) observed that the failure of the assessee to comply with the notices was not willful and that denying the assessee another opportunity would be contrary to the principles of natural justice.
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The tribunal acknowledged the assessee’s willingness to participate in the proceedings and concluded that a fresh hearing before the CIT(A) was warranted.
Accordingly, the ITAT set aside the order of the CIT(A) and remanded the matter back for fresh adjudication.
The appellate authority was directed to provide the assessee with a reasonable opportunity to present his case, ensuring that all necessary documents and submissions are considered. However, the ITAT also made it clear that no further adjournments would be granted without justifiable reasons.
In Conclusion, the appeal was allowed for statistical purposes.
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