SHRI SUMERMAL B MEHTA,MUMBAI vs. ITO -19(3)(4), M UMBAI
What did the Tribunal hold?
The Tribunal set aside the ex-parte order of the CIT(A) and remanded the case back for fresh adjudication. This was done to provide the assessee with another opportunity to present their case.
What were the facts?
The Assessing Officer made an addition of Rs. 6,33,873/- as unexplained credit under Section 68. The assessee's appeal before the CIT(A) was dismissed ex-parte due to non-compliance despite multiple notices.
What were the issues?
Whether the CIT(A) was justified in dismissing the appeal ex-parte without affording sufficient opportunity. Whether the assessee's non-compliance warranted an ex-parte decision.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “SMC” BENCH, MUMBAI
Before: SHRI N. K. CHOUDHRY, JM
O R D E R Per N. K. Choudhry, JM:
The Assessee has preferred this appeal against the order dated 27.05.2023 impugned herein passed by National Faceless Appeal Centre (NFAC), Delhi {in short ‘NFAC’}/ Ld. Commissioner of Income Tax (in short “ Ld. Commissioner” u/s 250 of the Income Tax Act 1961 (in short ‘the Act’).
Shri Sumermal B Mehta In the instant case, the AO vide order dated 25th December, 2. 2017 u/s 143 (3) read with section 143 of the Act, assessed the income of the Assessee to the tune of Rs. 14,08,033/- as against total income declared to the tune of Rs. 7,69,160/- by the Assessee by filing of its return of income dated 12th March, 2013. The AO also made the addition of Rs. 6,33,873/- as unexplained credit u/s 68 of the Act. Though the Assessee preferred first appeal before ld. CIT(A) however in spite of sending 3 notices dated 13th January, 2023, 12th April, 2023 and 22nd May 2023 respectively for the dates of hearing on 20th January, 2021, 20th April, 2023 and 26th May 2023, made no compliance and neither furnished any detail nor filed any petition for adjournment and therefore in the constrained circumstances, the ld. Commissioner dismissed the appeal by passing the impugned order as ex-parte and consequently sustained the assessment order, against which the Assessee is in appeal before this Bench. Though the notice for the date of hearing of this appeal for today was sent to the Assessee by speed post at the address mentioned in form No. 33, however the same has been retuned back as unserved, which goes to say that the Assessee is not situated at the address mentioned in form No. 36, hence in the constrained circumstances I am inclined to decide this appeal as ex-parte. The ld. CIT(A) though gave 3 opportunities to the Assessee, but the Assessee has not acted with due diligence and remained lethargic in pursuing its appeal and therefore, the ld. CIT(A) was constrained to decide the appeal as ex-parte. However considering peculiar facts and circumstances of the case and for the just decision in the case and for the ends of justice, I am inclined to afford one more opportunity to the Assessee by setting aside the impugned order and to remand the instant case to the file of the ld. CIT(A) for decision afresh, but subject to deposit of Rs. 33,00/- in the National relief fund . Hence ordered accordingly.
In the result, appeal filed by the Assessee stands allowed for statistical purposes.
More judgments on Section 68
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- Ajaybhai Dineshbhai Bagdai, Near Central… vs The Income Tax Officer, Ward-1(2)(1), New…ITA 74/RJT/2026[2013-14]Status: Disposed19 Oct 2026AY 2013-14
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