M/S.ACE RESORTS & INFRASTRUCTURE P LTD.,SURAT vs. INCOME TAX OFFICER WARD -1(1)(1), SURAT

Assessee by None. Revenue by Ms. B.K. Panda – Sr. DR Date of hearing 28.05.2021 Date of pronouncement 28.05.2021 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER:

1. 1. This appeal by the assessee are directed against the order of ld.Commissioner of Income Tax (Appeals)-1, Surat hereinafter referred as “Ld. CIT(A)” dated 04.12.2017 which in turn arises from the assessment order under section 143(3) dated 16.03.2016 for the assessment year (AY) 2013-14.

2. Brief facts of the case are that the assessee is a company engaged in the business of civil construction work, filed its Return of Income on 01.10.2013 declaring total income at Rs.48,940/-. The case was selected for scrutiny. The Ld.Assessing Officer (AO) while serving statutory notice and questionnaire, passed the assessment order on 16.03.2016 under section 143(3) of the Act. The AO while passing the assessment order, made following additions/disallowances.

M/s.Ace Resorts & Infrastructure P. Ltd.,, A.Y.2013-14 S.No. Particulars Amount 1 Disallowance of Rent Expenses u/s.40(a)(ia) of the Rs.2,20,500/- I.T.Act. 2 Disallowance of supervision charges u/s. 40(a)(ia) of the Rs.13,21,719/- I.T.Act. 3 Addition on account of prior period items Rs.1,42,878/- 4 Addition on account of labour contractor and supervision Rs.21,98,350/- charges 5 Disallowance on account of interest on TDS Rs.2,30,545/- 3. On appeal before the ld.CIT(A), the action of AO was upheld. The ld.CIT(A) dismissed the appeal of the assessee as unadmitted for the want of compliance of various show cause notices. Further aggrieved, the assessee has filed present appeal before us.

against the passing ex-parte order by ld. CIT(A) without providing reasonable opportunity of hearing to the assessee.

5. The appeal came up for hearing on 20.08.2021. Shri Dhairya Vora, learned authorised representative (AR) of the assessee, from office of ‘Sapnesh Sheth & Co’ CA, whose authority letter is on record, submits that he may be allowed to withdraw their authority letter from the proceedings. The ld. AR further submits that assessee has already been informed about the date of hearing and that they are not providing sufficient information to represent their case. Considering the submission of learned AR of the assessee, they are discharged from the proceedings. 2 M/s.Ace Resorts & Infrastructure P. Ltd.,, A.Y.2013-14 6. We perused the contents of impugned order passed by the ld.CIT(A), and find that the ld.CIT(A) dismissed the appeal of assessee as unadmitted by taking view that despite granting various opportunities, the assessee has not attended the proceedings and that assessee is not interested in pursuing the appeal. This fact was confronted with Ld. Sr. Departmental Representative (Sr. DR) for revenue. The Sr. DR for the revenue submits that assessee was given ample opportunity as recorded by the ld.CIT(A) in para 5.1.1 of the impugned order.. The ld.Sr.DR submits that 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. In alternative submission, the ld.Sr.DR for the Revenue submits that in case the Hon’ble Tribunal is deem appropriate, the assessee be directed to be vigilant and not to default in attending the proceedings and to waste the time of public authorities/ld.CIT(A).

7. We have considered the rival submission of both the parties and have gone through the orders of Lower Authorities. We have noted that assessee did not make any compliance to show cause notices issued by the ld.CIT(A) as recorded in para 5.1.1 of the impugned order. The ld.CIT(A) confirmed the action of AO by taking view that there is non-compliance on the part of the assessee. We further find that in para 5.1.1 the ld CIT(A) recorded that final