Case Law Details
Sh. Iqbal Singh HUF Vs DCIT (ITAT Chandigarh)
Sh. Iqbal Singh HUF filed an appeal before the ITAT Chandigarh against the ex parte order passed by the NFAC, Delhi for the assessment year 2018-19. The NFAC dismissed the assessee’s appeal on the grounds of non-compliance, without considering the merits of the case. The appellant approached the ITAT, challenging the order and seeking a fresh decision on the merits.
The NFAC dismissed the appeal of Sh. Iqbal Singh HUF due to non-compliance during the proceedings. However, the ITAT opined that non-compliance with the order of the Commissioner of Income Tax (Appeals) cannot be the sole reason to justify an addition on the taxpayer. The ITAT set aside the ex parte order and restored the appeal to the NFAC for a fresh decision. The NFAC was directed to provide proper and sufficient opportunity to the assessee to present their case. The assessee was also instructed to fully cooperate in the proceedings and avoid seeking undue adjournments.
The ITAT Chandigarh allowed the appeal of Sh. Iqbal Singh HUF and set aside the ex parte order passed by the NFAC. The case has been remanded to the NFAC for a fresh decision on the merits, with directions to provide adequate opportunity to the assessee. The ITAT emphasized that non-compliance alone cannot be the basis for allowing an addition on the taxpayer, and a proper examination of the merits is required.
FULL TEXT OF THE ORDER OF ITAT CHANDIGARH
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