JAGDISH LALLUBHAI SHAH,SURAT vs. THE INCOME TAX OFFICER, WARD-2(3)(7), SURAT

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ITA 503/SRT/2018Status: DisposedITAT Surat05 July 2021AY 1014-155 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal restored the appeal to the CIT(A) for fresh adjudication, granting the assessee one more opportunity for a hearing. The CIT(A) was directed to decide the appeal on merits after providing a fair opportunity to the assessee.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed ex-parte due to alleged non-compliance with notices. The assessee claimed to have filed an application for consolidation of appeals for multiple assessment years, which was not considered.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex-parte without considering the assessee's request for consolidation and whether the appellate order was passed in accordance with Section 250(6) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 14A,Section 250(6)

AI-generated summary — verify with the full judgment below

Assessee by Mr. Anil K. Shah, AR Revenue by Ms. Anupama Singla, Sr-DR Date of hearing 05/07/2021 Date of pronouncement 05/07/2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the orders of ld. Commissioner of Income tax (Appeals)-1, Surat dated 06.06.2018 for the assessment year (AY) 2014-15. The grounds of appeal raised by the assessee are summarized as under:

1. The Ld. CIT(A) has erred in confirming the addition of Rs.12,60,814/- u/s 14A of the Income Tax Act, 1961.

2. The Ld. CIT(A) has passed the appellate order inspite of request for consolidation of appeals with AY 2013-14 and AY 2015-16. The AR had appeared before the CIT(A) on 17th May, 2018 and informed the CIT(A) about the pending appeal for AY 2013-14 and AY 2015-16. The CIT(A) instructed the staff to consolidate the files but to my great surprise, the CIT(A) passed the appellate order in hurry.

(AY 2014-15) Jagdish Lallubhai Shah 2. Brief facts of the case are that the assessment for the year under consideration was completed on 19.12.2016 under section 143(3). The assessing officer while passing the assessment order made addition of Rs.12,60,814/- as disallowance under section 14A. On appeal before ld. CIT(A) the action of the assessing officer was affirmed. The ld CIT(A) confirmed the order of assessing officer in ex-parte order by taking view that despite granting a number of opportunity the assessee failed to comply the notices. Further aggrieved, the assessee has filed present appeal before this Tribunal.

3.

We have heard the learned Counsel/ authorised representative (AR/ Counsel) for the assessee and the learned senior departmental representative (Sr DR) for the revenue. The ld counsel for the assessee submits that the in response to notice issued by Ld. CIT(A), he appeared and filed application for consolidation of appeals for assessment year 2013-14 and 2015-16 as similar additions were involved. The Ld. CIT(A) instead of considering the submission for consolidation of appeals for all three years held that assessee has not made any compliance. The Ld. AR further submits that appeal for assessment year 2013-14 and 2015-16 are still pending at the file of Ld. CIT (A). The Ld. AR for the assessee submits that the assessee has good case on merit and is likely to succeed if the assessee is given opportunity of hearing and appeal is decided on merit. The ld counsel for the assessee prayed to restore the appeal to the files of learned CIT(A), with the direction to (AY 2014-15) Jagdish Lallubhai Shah provide one more opportunity to the assessee and he undertake on behalf of the assessee to be more vigilant in future. The learned Counsel also assured the bench to furnish his email address as well as telephone number for communication of the hearing before ld. CIT(A).

4.

In alternative submission the ld. Counsel submits that the order passed by ld CIT(A) is not on merit of the case and the order of ld CIT(A) is liable to be set aside on this ground as well.

5.

On the other hand the ld. Sr. DR for the Revenue submits that the assessee was given two opportunity as recorded in para 6 of the order passed by the ld. CIT(A). The assessee failed to comply with the notice issued by the ld. CIT(A). There is no finding of Ld. CIT(A) about filing of application for consolidation of appeals for earlier and subsequent assessment years. As no compliance was made by assessee, in response to notices issued by Ld. CIT(A), the ld. CIT(A) left with no option, except to proceed to decide the issue and in absence of any evidence or explanation affirm the action of AO. The learned Sr DR for the revenue prayed for dismissal of the appeal.

6.

In alternative submission, the ld. Sr. DR for the Revenue submits that in case the Hon’ble bench deems it appropriate to restore the grounds of appeal to the file of ld. CIT(A), the assessee be directed to be vigilant and not to default in future in attending the proceedings and to waste the time of public authorities/ld.CIT(A).

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