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Assessee by Mr. P.M. Jagasheth, CA Revenue by Ms. Anupama Singla, Sr-DR Date of hearing 02/07/2021 Date of pronouncement 02/07/2021 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 24.05.2018 for the assessment year (AY) 2014-15. The grounds of appeal raised by the assessee are summarized as under:
1. On the facts and in the circumstances of the case as well as law on the subject, the learned commissioner of the Income Tax (Appeals) has erred in confirming the action of the assessing officer in making addition of Rs.11,85,715/- on account of disallowance of deduction claimed u/s, 80IB of the Income Tax Act, 1961.
2. On the facts and in the circumstances of the case as well as law on the subject, the Seamed commissioner of the Income Tax (Appeals) has not provided the ample opportunities to hear the case and passed ex-parte order, the case may please set aside and restored back to the CIT (A).
(AY 2014-15) M/s Shyam Corporation 3. It is therefore prayed that the above addition may please be deleted as learned members of the tribunal may deem it proper.
Appellant craves leave to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal.
Brief facts of the case are that the assessment for the year under consideration was completed on 30.11.2016 under section 143(3). The assessing officer while passing the assessment order disallowed the deduction under section 80IB, by taking view that the assessee’s claimed is found inadmissible. 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.
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 notices issued from the office of ld CIT(A) was not received by the assessee as the assesse has changed his address and could not informed new address in time. The learned counsel for the assessee submits that similar claim of the assessee under section 80IB(10) was allowed in appeal for AY 2012-13 by Tribunal in dated 31.08.2018 and that the grounds of appeal raised by the assessee are covered in favour of the assessee. Thus, the assessee has good case on merit and is likely to succeed (AY 2014-15) M/s Shyam Corporation if the assessee is heard on merit. The ld counsel for the assessee prayed to restore the appeal to the files of learned CIT(A), with the direction to 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). 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.
4. On the other hand the ld. Sr. DR for the Revenue submits that the assessee was given two opportunity as recorded in para 5.1.1 of the order passed by the ld. CIT(A). The assessee failed to comply with the notice issued by the 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.
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). The assessee should not take the proceeding before the first appellate authority in casual manner.
6. We have considered the rival submission of ld. AR for the assessee and the DR for the revenue and have gone through the orders of lower authorities.