Lack of Prejudice to Revenue and Non-compliance by Assessee, ITAT Remands Case for De Novo Assessment u/s 144 & 147 [Read Order]

The Ahmedabad Bench of Income Tax Appellate Tribunal (ITAT) remanded the case to the Assessing Officer (AO) for fresh examination due to non-compliance by the assessee and lack of prejudice to the revenue.

Abidbhai Umarbhai Qureshi, appellant-assessee, filed an appeal against the order passed by the Commissioner of Income Tax (Appeals) for the assessment year (AY) 2012-13, under section 250 of the Act.

Law and Procedure for Filing of Appeals

The assessee attributed the delay in responding to the notices to being an illiterate person engaged in the business of purchase and sale of live animals.

The  Counsel for the assessee,Samir Vora, requested the tribunal to set aside the ex-parte order, emphasizing that the assessee, being an illiterate person, was not well-versed with the Income Tax procedures, and therefore, the non-compliance was not intentional. The tribunal, after reviewing the submissions, allowed the appeal, setting aside the ex-parte order and remanding the matter back to the AO for De novo assessment.

Law and Procedure for Filing of Appeals

The assessment order had been passed ex-parte under section 144, as the assessee failed to attend the hearing on various dates despite notices issued by the AO. The assessee also failed to comply with the notices issued by the CIT(A), leading to an ex-parte order rejecting the appeal. Consequently, the assessee requested an opportunity to properly represent its case before the AO.

The two-member bench comprising Dr. BRR Kumar (Vice President) and  Suchitra Kamble (Judicial Member) after considering the submissions of both parties and reviewing the record, found that the assessment order was passed ex-parte under section 144, and the assessee had failed to attend the hearing and comply with the notices issued by the AO and the CIT(A).

Law and Procedure for Filing of Appeals

In the interest of justice, the tribunal remanded the matter back to the file of the AO for De novo assessment, directing the AO to make proper verification and adjudication of the issues as per the Income Tax Act, and allowing the assessee an opportunity to comply with the necessary procedures.

Ultimately, the appeal filed by the assessee, Abidbhai Umarbhai Qureshi, was allowed for statistical purposes.

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