Case Law Details
Pashupati Dealcom Pvt. Ltd. Vs ITO (ITAT Kolkata)
Income Tax Appellate Tribunal (ITAT) Kolkata remanded the case of Pashupati Dealcom Pvt. Ltd. to the Assessing Officer (AO) after noting that both the assessment and appellate orders were passed ex-parte. The case pertained to the assessment year 2013-14, and the assessee had appealed against the order of the Commissioner of Income Tax (Appeals)-NFAC, Delhi. The tribunal acknowledged a seven-day delay in filing the appeal but condoned it after the assessee provided a reasonable explanation. The assessee’s director, in an affidavit, stated that all tax-related communications were managed by the company’s accountant, who left the job without notice. Consequently, the company failed to appear for hearings, resulting in an ex-parte decision against them.
Given these circumstances, ITAT Kolkata ruled that the assessee should be given another opportunity to present its case. The tribunal set aside the ex-parte orders and directed the AO to re-adjudicate the matter, ensuring that the assessee receives a reasonable opportunity for representation. The appeal was thus allowed for statistical purposes. The decision highlights the importance of proper communication management in tax matters to avoid procedural lapses leading to ex-parte assessments.
FULL TEXT OF THE ORDER OF ITAT KOLKATA
This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-NFAC, Delhi (hereinafter referred to as the “Ld. CIT(A)”] dated 13.12.2023 for the AY 2013-14.
2. It was pointed out at the time of hearing that the appeal is time barred by limitation by 7 days. However, the assessee has filed the condonation petition explaining the reasons for delay in filing the appeal which we find to be sufficient and bona fide and accordingly the appeal is admitted for hearing by condoning the delay.
3. At the outset, we note that the assessment order as well as the appellate order were passed ex-parte when the assessee did not appear before either of the authorities below on the dates fixed for hearings. It was stated in the Affidavit filed by Shri Amarnath Ghosh, director of the assessee company that all the communications relating to the assessee used to be received on e-mail-Id which were being accessed and managed by the company’s accountant who left the job without any information/intimation. Therefore, the case of the assessee remained unattended before the authorities below. Under these circumstances, we are of the considered view that ends of justice would be met, if the assessee is given one more opportunity to present its case on merit before the AO. Accordingly, we restore this appeal to the file of AO with the direction to re-adjudicate the matter after affording a reasonable opportunity to the assessee.
4. In the result, the appeal of the assessee is allowed for statistical purposes.
Order is pronounced in the open court on 21st January, 2025
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