In a recent case before Income Tax Appellate Tribunal ( ITAT ), Bangalore an appeal filed by the assessee was allowed granting a final opportunity to the appellant to represent its case before the tribunal by canceling the issued ex-parte order on grounds of staff shortage and administrative issues.
The assessee Namtech Electronic Devices Ltd. filed an appeal against the Income Tax Officer (ITO), Bengaluru with respect to an order passed by CIT(A) under section 250 of the Income Tax Act, 1961 with reference to the Assessment Year 2018-19.
The assessee’s appeal before CIT(A) was found to be decided ex-parte, as the assessee had failed to reply to several notices issued by CIT(A) to file written submissions.
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The assessee’s representative Advocate Kaushik M, submitted that the assessee’s firm was facing shortage of staff and was not generating income, and the staff had failed to take note of the notices.
The counsel requested the tribunal to provide the assessee with another opportunity to represent the case before AO in the interest of equity and justice.
The tribunal comprising Shri.George George K, Vice President observed that the CIT(A) had issued several notices to the assessee directing to file written submissions, since the assessee did not respond to any of those notices the CIT(A) had passed an ex-parte order.
The assessee claimed that his company was defunct and due to certain administrative reasons the assessee had failed to respond to the notices sent by CIT(A). The tribunal strongly criticized the careless attitude of the assessee. However upholding the interest of justice and equity, the tribunal was of the view that assessee should be provided with one more opportunity to represent its case.
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Thus the issue raised in the appeal was restored to the file of AO and instructed the assessee to cooperate with the revenue and not seek unnecessary adjournment.
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