Rely on Pharmaceuticals, Pune V. The Income Tax Officer, Ward-8(3), Pune

ITA 740/PUN/2023

AI Insights

The case involves Rely on Pharmaceuticals, the appellant, who appealed against the order of the NFAC, which had dismissed their appeal ex-parte following a best judgment order by the Assessing Officer (AO) under section 144 of the Income-tax Act. The appellant had initially failed to provide evidence supporting their claims due to reasons beyond their control, including the COVID-19 pandemic. The ITAT found that the NFAC had not properly addressed the appellant's rights and liabilities on merits and thus remanded the case for a thorough re-examination.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 136285 (ITAT-PUNE)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-07-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 22-06-2023
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144; 250; 246A

Judgement Text

॥ आयकर अपीलीय न्यायाधिकरण, पुणे “बी” न्यायपीठ, पुणे में ॥ ITAT-Pune Page 1 of 4 IN THE INCOME TAX APPELLATE TRIBUNAL, PUNE “B” BENCH, PUNE BEFORE HON’BLE SHRI S. S. VISWANETHRA RAVI, JUDICIAL MEMBER AND SHRI G. D. PADMAHSHALI, ACCOUNTANT MEMBER आयकर अपऩल सं. / ITA No.740/PUN/2023 निर्धारण वर्ा / Assessment Year : 2015-16 Rely on Pharmaceuticals 402-B, 4 th Floor, Prime Square, Kunal Icon Rd., Pimpri Saudagar, Pune. PAN : AALFR5651B . . . . . . . अपऩलधथी / Appellant बनाम / V/s. Income Tax Officer Ward-8(3), Pune . . . . . . . प्रत्यथी / Respondent द्वारा / Appearances Assessee by : Shri Suhas Bora Revenue by : Shri Abdesh Kumar Jha सपिवधई की तधरऩख / Date of conclusive Hearing : 27/07/2023 घोर्णध की तधरऩख / Date of Pronouncement : 04/08/2023 आदेश / ORDER PER G. D . PADMAHSHALI; This appeal is filed by the assessee against the order of National Faceless Appeal Centre, Delhi [for short ‘NFAC’] DIN & Order ITBA/NFAC/S/250/2023-24/1053368826(1) dt. 31/05/2023 passed u/s 250 of the Income-tax Act, 1961 [for short ‘the Act’]. Rely on Pharmaceuticals ITA No.740/PUN/2023 ITAT-Pune Page 2 of 4 2. At the outset of hearing, the Ld. AR inviting our attention to the impugned order of Ld. FAA has submitted that, aggrieved by the best judgment order of the Ld. AO dt. 08/12/2017 passed u/s 144 of the Act, the appellant assessee had filed an appeal before the Ld. NFAC on 15/01/2018, however the reasons behind its control, the assessee failed to furnish any evidence in support of its claim. For the reasons the Ld. NFAC without dealing case on merits has dismissed the appeal ex-parte. The appellant however for fair justice seeks one more opportunity by undertaking to adduce necessary evidences in support of its claim and to co-operate in remand proceedings before the Ld. NFAC. Per contra the Ld. Senior DR solidifying the facts, has contended that under faceless regime the appellant did neither respond to any of the notices served to it nor had brought on record a proof of having adduced any material in support of its claim, consequently the Ld. NFAC had no choice but to confirm the findings of Ld. AO in the absence of deprecative material on record. Rely on Pharmaceuticals ITA No.740/PUN/2023 ITAT-Pune Page 3 of 4 3. After hearing rival contentions, perused the material placed on record in light of Rule 18 of ITAT-Rules 1963 and we find that due to COVID-19 coupled with other consequential reasons the appellant assessee failed to comply with the notices and adduce evidential documents before the first appellate authority below, which resulted into ex-parte proceedings without effective determination of rights and liabilities of either party on merits. 4. We also note that, in the light of restriction placed by clause (a) of sub-section (1) of section 251, the Ld. NFAC without remanding the ex-parte assessment has dismissed the appeal of the appellant assessee de-facto. However said dismissal in our view is suffered from the provisions of sub-section (6) of section 250 of the Act, which mandates the Ld. first appellate authority to state the points for its determination, the decision thereon and the reason for such decision while disposing of the appeal instituted before it u/s 246A of the Act. Rely on Pharmaceuticals ITA No.740/PUN/2023 ITAT-Pune Page 4 of 4 5. For the reason we see force in the request of the appellant to remand the matter back to the file of first appellate authority to deal with aforestated deficiency and to pass a speaking order on merits. Since the rights and liabilities in the extent appeal have not been effectively dealt with on merits, in all the fairness, without commenting on its merits we deem it fit to remand the case back to the file of the Ld. NFAC for de- novo adjudication in the light of section 250(6) of the Act, ergo we order accordingly. 5. In result, the appeal is ALLOWED FOR STATISTICAL PURPOSE. In terms of rule 34 of ITAT Rules, the order pronounced in the open court on this Friday 04 th day of August, 2023. -S/d- -S/d- S. S. VISWANETHRA RAVI G. D. PADMAHSHALI JUDICIAL MEMBER ACCOUNTANT MEMBER पुणे / PUNE ; दिन ांक / Dated : 04 th day of August, 2023. आदेश की प्रधिधलधप अग्रेधिि / Copy of the Order forwarded to : 1. अपील र्थी / The Appellant. 2. प्रत्यर्थी / The Respondent. 3. The CIT(A)-NFAC, Delhi (India) 4. The CIT -1, Pune (MH-India) 5. DR, ITAT, Bench ‘B’, Pune 6. ग र्डफ़ इल / Guard File. आिेश नुस र / By Order, वररष्ठ दनजी सदिव / Sr. Private Secretary आयकर अपीलीय न्य य दिकरण, पुणे / ITAT, Pune.