National Faceless Appeal Centre shall pass a Speaking Order even if Assessee fails to Represent during Hearing: ITAT [Read Order]

The Income Tax Appellate Tribunal (ITAT), Jodhpur has held that the National Faceless Appeal Centre, (NFAC) shall pass a speaking order even if the assessee fails to represent him before it during the time of the hearing.

The assessee argued that the NFAC, in the impugned order, has dismissed the assessee’s appeal without considering the merits of the case, and, therefore, the assessee seeks one more opportunity before the Ld. First Appellate Authority so that interest of substantial justice is met.

After analyzing the facts of the case deeply, the Two-member bench comprising ITAT Vice-President Mr. N K Saini and Judicial Member Mr. Sudhansu Srivastava held that “admittedly and undisputedly, the assessee chose to be un-represented before the NFAC on as many as three occasions. However, the fact does remain that the NFAC did not adjudicate on the merits of the case but dismissed the assessee’s appeal before it on the ground that there was no compliance of any of the notices by the assessee, therefore, the appeal deserved to be dismissed. It is settled law that even if an ex-parte order is being passed against the assessee, the adjudication is to be made on merits. The NFAC was bound to pass a speaking order in accordance with law even if the assessee was not represented before it. Accordingly, in the interest of substantial justice, we restore this appeal to the file of the Ld. First Appellate Authority to be adjudicated on merits after affording proper opportunity to the assessee to present its case. We also direct the assessee to avail this opportunity being given by us, failing which, the Ld. First Appellate Authority shall be at liberty to proceed with the adjudication of the appeal ex-parte qua the assessee in accordance with the law.”

To Read the full text of the Order CLICK HERE

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