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.
Conclusion: The case of Narayan Dattarao Giram Vs ITO underscores the importance of maintaining clear and updated communication channels during tax assessments. A change in a Chartered Accountant should not lead to missed notices and the absence of the assessee during assessments or appeals. The decision of ITAT Pune to grant another opportunity to the assessee reflects the principles of fairness and natural justice in tax proceedings, ensuring that taxpayers have a reasonable chance to present their case and evidence in compliance with the law.
FULL TEXT OF THE ORDER OF ITAT PUNE
This appeal by the assessee arises out of the ex parte order dated 31-05-2023 passed by the National Faceless Appeal Centre (NFAC), Delhi u/s.250 of the Income-tax Act, 1961 (hereinafter also called ‘the Act’) in relation to the assessment year 2011-12.
2. This appeal is time barred by about 45 days. The assessee has filed an affidavit stating the reasons which led to the late filing. I am satisfied with the reasons so stated. Therefore, the delay is condoned and the instant appeal is admitted for disposal on merits.
3. Heard the rival submissions and perused the relevant material on record. It is seen that the assessment order in this case was passed u/s.144 r.w.s.147 of the Act determining total income at Rs.13,28,000/-. The ld. CIT(A) also passed ex parte order in the absence of the assessee. The ld. AR submitted that the assessee had changed the Chartered Accountant and the case was not represented before the authorities because of registration of the e-mail id of the previous Chartered Accountant. As such, he could not receive the notices sent by the authorities. He thus prayed for granting another opportunity. In view of the facts obtaining in the instant case where both the assessment as well as the first appellate orders have been passed in the absence of the assessee, I am of the opinion that it would be just and fair if the impugned order is set-aside and the matter is remitted to the file of the AO with a direction to pass the assessment order afresh as per law after allowing a reasonable opportunity of hearing to the assessee. I order accordingly. Needless to say, the assessee will be at liberty to lead any fresh evidence in support of his case in the fresh assessment.
Non receipt of notice due to Change of CA – ITAT directs readjudication
4. In the result, the appeal is allowed for statistical purposes.
Order pronounced in the Open Court on 03rd October, 2023.
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