PADMA-DISHA PARADISE,MUMBAI vs. DCIT, CENTRAL CIRCLE-1, THANE

“1. On the facts and in the circumstances of the appellant's case and in law, the Learned Commissioner of Income Tax (Appeal) erred in passing the ex-parte order. 2. On the facts and in the circumstances of the appellant's case and in law, the Ld. Commissioner of Income Tax (Appeals) erred in not affording one more opportunity of being heard despite the fact that an adjournment was requested on the appointed day i.e on 15.03.2023.

The assessee filed the appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assesse holding that assessee has not made compliance to the notices issued during the course of appellate proceedings before us.

Heard the ld. D.R and perused the material on record. During the course of assessmentthe assessee has not made any compliance during the course of assessment proceedings. Therefore, AO has treated the unsecured loan obtained by the assessee from the 6 parties as discussed supra as unexplained u/s 68 of the Act. Even during the course of appellate proceeding before the ld. CIT(A) the assessee has frequently sought adjournment on the ground that the paper book required to be submitted was under compilation. In the ground no.2 of the appeal filed before us, the assessee pleaded that they have requested the Ld. CIT(A) on the date of hearing fixed on 15.03.2023 for offering one more opportunity of hearing. In the statement of facts filed by the assessee before the ld. CIT(A), the assessee submitted that they failed to make compliance because the lenders have taken more time in providing the required documents for the purposes of making compliance in the appellate proceedings. After considering the above facts and circumstances we observe that for deciding the issue on merit it is appropriate to provide one more opportunity to the assessee at the level of first appellate authority. Therefore, we restore the case to the file of the ld. CIT(A) for deciding afresh on merit as contemplated u/s 250(6) of the Act after affording one more opportunity to the assessee. The assessee is also directed to make compliance before the ld. CIT(A) without any failure. Therefore, the appeal of the assessee is allowed for statistical purposes.

In the result, the appeal of the assesse is allowed for statistical purposes. Order pronounced in the open court on 26.10.2023 Sd/- Sd/- (VikasAwasthy) (Amarjit Singh) Judicial Member Accountant Member Place: Mumbai Date 26.10.2023 Rohit: PS आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. आयकर आयुक्त / CIT 4. विभागीय प्रविवनवध, आयकर अपीलीय अवधकरण DR, ITAT, Mumbai 5. गार्ड फाईल / Guard file.