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Income Tax Appellate Tribunal, “DB” BENCH, JODHPUR
IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, JODHPUR BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER ITA No. 277/JODH/2016 (A.Y: 2008-09) M/s Kushal Traders, Vs. ITO, Ward – 3(3), Rajendra Jain, Adv Jodhpur, Shatrunjay hari Singh Rajasthan. Nagar, Pali Road, Jodhpur. Rajasthan. PAN/GIR No. : AAEFK7106R Appellant .. Respondent Assessee by : Shri Rajendra Jain, Adv.AR Revenue by : Ms. Nidhi Nair, JCIT - DR Date of Hearing 08.08.2023 Date of Pronouncement 09.08.2023 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the Commissioner of Income Tax (Appeals) – 2, Jodhpur order passed u/s 250 of the Act. The assessee has raised the following grounds of appeal:
1] That on the facts and in the circumstances of the case the ld CIT (A) erred in upholding the validity of order passed by the ld AO.
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2] That on the facts and in the circumstances of the case the ld CIT (A) ought to have quashed the order as the order passed by ld AO is beyond the scope of provisions of section 154 of the Act. 3] That on the facts and in the circumstances of the case the order passed by ld CIT (A) is bad in law and bad in facts. 4] That on the facts and in the circumstances of the case the ld CIT (A) erred in sustaining addition of Rs. 68,610/- in respect of undisclosed receipt. 5] That the petitioner may kindly be permitted to raise any additional or alternative grounds at or before the time of hearing. 6] The petitioner prays for justice & relief 2. The brief facts of the case that, the assessee is engaged in the business and the assessment was completed u/s 143(3) of the Act for the A.Y 2008-09 on 23.11.2010 with assessed income of Rs.5,93,464/-. Whereas the AO on perusal of the records found that the assessee firm was distributor of Tata Mobile & recharge coupon of M/s Tata Tele Services. The assessee has claimed excess payment of incentives and in the absence of supporting evidence and agreement Rs. 68,610/- is disallowed and added to the total income and passed the passed the order u/s 154 of the Act dated 14.02.2014.
Aggrieved by the order, the assessee has filed an appeal before the CIT(A),whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the
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AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the ex parte order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal.
At the time of hearing, the Ld. AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the submissions made in the assessment proceedings. Further the assessee has a good case on merits and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Contra, the Ld. DR supported the order of the CIT(A). 5. We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of
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hearing referred at Page 2 Para 2 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the disallowance by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. And the grounds of appeal of the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 09.08.2023
Sd/- Sd/- ( DR DIPAK P RIPOTE) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER
Jodhpur, Dated 09.08.2023
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KRK, PS Copy of the Order forwarded to : The Appellant 1. The Respondent. 2. The CIT(A) 3. Concerned CIT 4. DR, ITAT, Jodhpur 5. Guard file. 6. आदेशानुसार/ BY ORDER, //True Copy// 1. ( Asst. Registrar) ITAT, Jodhpur