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Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI
Before: SHRI ABY T. VARKEY & SHRI GAGAN GOYAL&
PER GAGAN GOYAL, A.M: These appeals by assessee are directed against the order of National Faceless Appeal Centre (NFAC), Delhi dated 18.05.2023 u/s. 250 of the Income
ITA No. 2133/Mum/2023:-
1. The Ld. CIT (A) has erred in law and in facts in passing the order and dismissing the appeal without granting sufficient opportunity of hearing to the appellant.
2. the Ld. CIT (A) has erred in law and in facts in confirming the disallowance of employee benefit expenses @ 5% amounting to Rs. 36, 79,812/-
3. the Ld. CIT (A) has erred in law and in facts in confirming the disallowance of other expenses @ 10% amounting to Rs. 7, 00,048/-.
4. The Ld. CIT (A) has erred in law and in facts in confirming the addition u/s 68 of the Act on account of share application money received amounting to Rs 2, 17, 00,000/- treating the same as non genuine.
5. the appellant craves leave to add to, amend, alter or delete all or any of the foregoing grounds of appeal.
ITA No. 2133/Mum/2023:-
The Ld. CIT (A) has erred in law and in facts in passing the order and dismissing the appeal without granting sufficient opportunity of hearing to the appellant.
2. The Ld. CIT (A) has erred in law and in facts in not appreciating that the reopening of assessment u/s. 147 of the Act and the notice issued u/s. 148 of the Act were not in accordance with law and invalid.
3. The Ld. CIT (A) has erred in law and in facts in confirming the disallowance of Rs. 7, 00, 00,000/- on account of expenses debited to the profit and loss account.
The brief facts of the case are that assessee is a company filed its return of income on 01.10.2013 declaring total income at Rs. 14,53,240/-. Case of the assessee was selected for scrutiny under CASS. The assessee company engaged in the trading of textile. During the assessment proceedings, AO disallowed Rs. 36,79,812/- being 5% of employee’s benefit expenses, he further disallowed 10% of other expenses debited to P & L a/c. amounting to Rs 7,00,048/- and added back Rs. 2.17 crore being share application money received in this year u/s. 68 of the Act. Assessee being aggrieved with this order of AO, preferred an appeal before the Ld. CIT (A), who in turn dismissed the appeal of the assessee as none appeared /complied with the notices issued by the office of Ld. CIT (A).
We have gone through the order of AO and grounds taken by the assessee. It is observed that assessee has not participated well with the requirements of assessment proceedings and rather proceedings before the Ld. CIT (A) was not attended at all, resulting into dismissal of appeal on the ground of non- appearance /participation. The schedule of hearing notice issued alongwith the remarks of the Ld. CIT (A) is as under :-
Sr. HEARING NOTICE DATED HEARING DATE REMARKS No. 1 Notice dated 23.12.2020 15.01.2021 No compliance 2 Notice dated 11.10.2021 18.10.2021 No compliance 3 Notice dated 25.04.2023 01.05.2023 No compliance 4 Notice dated 03.05.2023 08.05.2023 No compliance “During the appellate proceedings, the appellant has only submitted submission in the form of 'Statement of Facts'. After that neither he has 4 & 2134/Mum/2023 Pundits Business Pvt. Ltd. replied to hearing notices nor submitted any documentary evidence/information to prove his side. Sufficient and adequate opportunities were afforded to the appellant as indicated at table at page no 2. No reply whatsoever has been submitted by the appellant. It can be safely presumed that the appellant is not interested in pursuing his appeal. Therefore, the undersigned sees no reason to interfere with the orders of the Assessing Officer. Thus, the appeal raised by the appellant is dismissed.”
In view of above, as the matter was not considered and disposed of on merits before the First Appellate Authority, we restore the matter back to the file of Ld. CIT (A) with the direction to issue a fresh notice to the assessee and assessee is directed to attend the appeal proceedings before the Ld. CIT (A) without seeking any adjournment and comply with a relevant notices.
In the result, appeal of the assessee is allowed for statistical purposes.
This appeal of the assessee pertains to the assessment order passed u/s 147 of the Act. In this appeal also facts of the proceedings before the Ld. CIT (A) is similar, the relevant extract of the proceedings before the Ld. CIT (A) are as under:-
Sr. HEARING NOTICE DATED HEARING DATE REMARKS No. 1 Notice dated 25.11.2022 06.12.2022 No compliance 2 Notice dated 07.12.2022 14.12.2022 No compliance 3 Notice dated 15.12.2022 21.12.2022 No compliance 4 Notice dated 22.12.2022 26.12.2022 No compliance 5. Notice dated 16.05.2023 22.05.2023 No compliance
5 & 2134/Mum/2023 Pundits Business Pvt. Ltd. “During the appellate proceedings, the appellant has only submitted submission in the form of 'Statement of Facts'. After that neither he has replied to hearing notices nor submitted any documentary evidence/information to prove his side. Sufficient and adequate opportunities were afforded to the appellant as indicated at table at page no 2. No reply whatsoever has been submitted by the appellant. Even the assessment was completed under Section 144 of the Income Tax Act, 1961 due to non- compliance on the part of the appellant. It can be safely presumed that the appellant is not interested in pursuing his appeal. Therefore, the undersigned sees no reason to interfere with the orders of the Assessing Officer. Thus, the appeal raised by the appellant is dismissed.”
In view of above, as the matter was not considered and disposed of on merits before the First Appellate Authority, we restore the matter back to the file of Ld. CIT (A) with the direction to issue a fresh notice to the assessee and assessee is directed to attend the appeal proceedings before the Ld. CIT (A) without seeking any adjournment and comply with a relevant notices.
In the result, appeal of the assessee is allowed for statistical purposes.
In the result, both the appeals of the assessee are allowed for statistical purposes.