Case Law Details
Narayan Dattarao Giram Vs ITO (ITAT Pune)
Introduction: The appeal of Narayan Dattarao Giram against an ex-parte order dated 31-05-2023 by the National Faceless Appeal Centre (NFAC), Delhi, relates to the assessment year 2011-12. The case highlights the significance of ensuring proper representation and communication in the tax assessment process, especially when a change in the Chartered Accountant can lead to missed notices.
Detailed Analysis: The assessment order for this case was issued under Section 144 read with Section 147 of the Income Tax Act, determining the total income at Rs. 13,28,000. However, the ld. CIT(A) also passed an ex-parte order in the absence of the assessee. The assessee’s representative, the Chartered Accountant, had changed during the proceedings.
The ld. AR (Authorized Representative) argued that the change in the Chartered Accountant resulted in missed notices sent by the tax authorities. The issue was related to the registration of the previous Chartered Accountant’s email ID, which caused communication gaps, leading to the absence of the assessee during assessments and appeals.
In light of the circumstances where both the assessment and the first appellate orders were passed in the absence of the assessee, the ITAT Pune found it just and fair to set aside the impugned order. The matter was remitted to the Assessing Officer (AO) with a directive to pass a fresh assessment order in accordance with the law, providing the assessee with a reasonable opportunity for a hearing. The decision allowed the assessee the flexibility to present any fresh evidence in support of their case during the fresh assessment.
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