Facts of the Case

The assessee, Prativa Mohanty, filed an appeal against the order dated 19.03.2025 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi for Assessment Year 2017-18. The appeal arose from an assessment where the assessee was unable to furnish complete supporting documents before the authorities below. The CIT(A) dismissed the appeal ex parte due to non-compliance and absence of complete details. Aggrieved, the assessee approached the Tribunal seeking restoration of the matter to enable submission of relevant documents.

Issues Involved

Whether the dismissal of the appeal ex parte without adjudication on merits was justified, whether the assessee deserved one more opportunity to substantiate her claim, and whether the matter should be restored for fresh adjudication subject to conditions.

Petitioner’s Arguments

The assessee submitted that she was unable to produce the required documents before the lower authorities due to unavoidable circumstances. It was prayed that the matter be restored to the file of the Assessing Officer so that all relevant documents could be furnished and the claim could be properly substantiated. The assessee undertook to cooperate fully in the remand proceedings.

Respondent’s Arguments

The Revenue contended that adequate opportunities were granted by both the Assessing Officer and the CIT(A) and that the assessee failed to comply. It was argued that the orders passed by the lower authorities deserved to be upheld.

Court Order / Findings

The ITAT Ranchi observed that the appeal before the CIT(A) had been dismissed ex parte and that the assessee was unable to furnish complete details in support of her claim. Considering the request made by the assessee for one more opportunity and in the interest of justice, the Tribunal held that the matter deserved to be restored to the file of the Assessing Officer for fresh adjudication after granting adequate opportunity of being heard. The Tribunal imposed a cost of ₹10,000 payable to the Jharkhand Income Tax Bar Association, Ranchi, within sixty days as a condition precedent. The assessee was also directed to cooperate fully in the readjudication proceedings.

Important Clarification

The Tribunal clarified that while repeated non-compliance cannot be encouraged, dismissal of appeals without adjudication on merits should be avoided where the assessee seeks a final opportunity and agrees to comply. Imposition of reasonable cost serves to balance natural justice with procedural discipline.

Final Outcome

The appeal filed by the assessee was partly allowed for statistical purposes. The matter was restored to the file of the Assessing Officer for fresh adjudication subject to payment of cost of ₹10,000 within the prescribed time and full cooperation by the assessee.

Link to Download Order- https://www.mytaxexpert.co.in/uploads/1769080157_PRATIVAMOHANTYJAMSHEDPURVS.DCITCIRCLE1JAMSHEDPUR.pdf

 

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