VENU KANCHI,WARANGAL vs. INCOME TAX OFFICER, WARD-5, WARANGAL

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ITA 1071/HYD/2019Status: DisposedITAT Hyderabad07 April 2021AY 2014-152 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A)'s order was passed ex-parte without confirming service of notice. Therefore, the case was restored to the CIT(A) for fresh adjudication on merits.

What were the facts?

The assessee's appeal for AY 2014-15 concerned an addition of Rs. 18.00 lakhs for unexplained expenditure under Section 69C. The CIT(A) had passed an ex-parte order affirming the Assessing Officer's action.

What were the issues?

Whether the CIT(A) order passed ex-parte without proper service of notice is sustainable. The validity of an ex-parte order passed by the CIT(A) without ensuring proper service of hearing notice.

Which sections of the Income-tax Act were involved?

Section 69C,Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘ B ‘ Bench, Hyderabad

Before: A. Mohan Alankamony & Shri S.S. Godara

Hearing: 08/03/2021Pronounced: 07/04/2021

This assessee’s appeal for AY.2014-15 arises from the CIT(A)-3, Hyderabad’s order dated 24.04.2019 passed in appeal No.0154/ITO-5/WGL/CIT(A)-3/2017-18, in proceedings u/s.143(3) of the Income Tax Act, 1961 [in short, ‘the Act’].

Heard both the parties. Case file perused.

2.

It transpires at the outset that the CIT (A)’s order under challenge affirming the Assessing Officer’s action making sec 69C addition of unexplained expenditure of Rs.18.00 lakhs in the course of assessment framed dated 27.2.2017, has been passed ex-parte without even indicating as to whether the corresponding lower appellate hearing notice had been actually served or not. Faced with this situation, we deem it appropriate to restore the assessee’s instant sole grievance back to the CIT (A) for Page 1 of 2 his afresh adjudication on merits. The assessee or learned AR shall now appear before the CIT (A) on or before 31/07/2021 with all the cogent supportive material at his own risk and responsibility to be followed by three effective opportunities of hearing.

3.

This assessee’s appeal is treated as allowed for statistical purposes in above terms. Order pronounced in the Open Court on 7th April, 2021.

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