RESOLUTE ELECTRONICS PRIVATE LIMITED, HYDERABAD,HYDERABAD vs. DCIT, CIRCLE-3(1), HYDERABAD, HYDERABAD

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ITA 680/HYD/2017Status: DisposedITAT Hyderabad28 May 2021AY 2012-133 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the case to the CIT(A) for fresh adjudication on merits. This was due to the ex-parte nature of the lower appellate order and the lack of clarity on whether hearing notices were properly served on the assessee.

What were the facts?

The assessee's appeal for AY 2012-13 was decided ex-parte by the CIT(A), who affirmed additions made by the Assessing Officer regarding unsecured loans, other expenses, and depreciation. The ITAT noted that the CIT(A) claimed to have given numerous opportunities but there was no proof of service of hearing notices on the assessee.

What were the issues?

Whether the CIT(A) order passed ex-parte was valid without proper proof of service of hearing notices to the assessee.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” : HYDERABAD

Before: SHRI S.S.GODARA & SHRI LAXMI PRASAD SAHU

O R D E R PER S.S.GODARA, J.M. :

This assessee’s appeal for AY.2012-13 arises from the CIT(A)-3, Hyderabad’s order dated 03-01-2017 passed in case No.0122/DCIT, Cir-3(1)/CIT(A)-3/15-16, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’]. Heard learned departmental representative. Case file perused. 2. It transpires at the outset that the CIT(A)’s lower appellate order affirming the Assessing Officer’s action inter alia adding un-secured loans followed Section 40(a)(ia), “other” expenses and depreciation’s disallowance involving varying sums of money; respectively has been passed ex-parte.

3.

Learned departmental representative invited our attention to para 4, pg.3 of the CIT(A)’s order that he had afforded numerous opportunities to the assessee. We find that there is no indication in the said discussion as to whether the corresponding lower appellate hearing notices had been actually served on the assessee or not? Faced with this situation, we deem it appropriate to restore the instant lis back to the CIT(A) for his afresh adjudication on merits within three effective opportunities of hearing.

4.

This assessee’s appeal is treated as allowed for statistical purposes in above terms.

Order pronounced in the open court on 28th May, 2021

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