IQRARUL HAQUE,SEONI vs. ASSESSING OFFICER, CHHINDWARA

IN THE INCOME TAX APPELLATE TRIBUNAL “DB” BENCH, JABALPUR BEFORESHRI OM PRAKASH KANT, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER IqrarulHaque, Vs. ITO, Samtanagar, AayakarBhawan,Opp Gad Colony,Barapatthar to Daniel Son College, MadhyaPradesh-480661. NagpurRoad, MadhyaPradesh- 480001. PAN/GIR No. : AAMPH7851E Appellant .. Respondent Appellant by : None Respondentby : Shri.Rajesh Kumar Gupta.Sr.DR Date of Hearing 13.09.2023 Date of Pronouncement 14.09.2023 आदेश / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the National Faceless Appeal Centre (NFAC) / CIT(A) passed u/s 143(3) and 250 of the Act. The assessee has raised the following grounds of appeal:

1.In the facts and circumstances of the case the Ld. CIT has erred in making addition of amount of Labour Expenses Payable of Rs 572820. IqrarulHaque. 2. In the facts and circumstances of the case the learning C.I.T. has erred in making addition of amount of Sundry creditors balances ofRs 5267315. 3. In the facts and circumstances of the case the learning C.I.T. has erred in passing the order under Us 250 same is bad in law and null void 4.In the facts and circumstances of the case the learning C.I.T. has erred in not giving the opportunity of being heard to appellant. 5. In the facts and circumstances of the case the learning C.I.T. has failed to apply principal of natural Justice 6In the facts circumstance of the case the order is to be declared NULL VOID 7. The appellant craves leave to amend alter or delete any of the above grounds of appeal 2. The brief facts of the case that, the assessee is engaged in the business of civil contract works and also derives interest income from fixed deposits. The assessee has filed the return of income for the A.Y 2016-17 on 29.03.2017 disclosing a total income of Rs. 17,97,670/-. Subsequently the case was selected for scrutiny under CASS and notice u/s 143(2) and 142(1) of the Act along with questionnaire are issued. In compliance to notice, the assessee has submitted written submissions online through ITBA. Further the assessee was issued notice 142(1) of the Act on IqrarulHaque. various dates and summons u/s 131 of the Act was also issued. In response to the summons, the assessee has appeared and submitted the books of accounts and other documents. Whereas the Assessing Officer (AO) on perusal of the financial statements found that there are sundry creditors balance outstanding and to test check the balances has issued notice U/sec133(6) of the Act. The A.O dealt on the transactions of sundry creditors, confirmations and income tax details. Since the assessee could not provide satisfactory evidences in respect of genuineness, and identity of the persons. The A.O considering the information and details has made addition of account balances of sundry creditors aggregating to Rs. 52,67,315/-.Similarly the A.O has disallowed the labour expenses of Rs.5,72,820/- and assessed the total income of Rs.76,37,805/- and passed the order u/s 143(3) of the Act dated 06.12.2018. 3. Aggrieved by the order, the assessee has filed an appeal before the CIT(A),whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was no compliance by the assessee to notices. Therefore the CIT(A) considering the information on record has IqrarulHaque. confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon’ble Tribunal. 4. At the time of hearing, none appeared on behalf of the assessee. Contra, the Ld. DR supported the order of the CIT(A). 5. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing referred at Page 3 Para3 of the order, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide with one more IqrarulHaque. opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal. And the grounds of appeal of the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. Orders pronounced in the open court on 14.09.2023 (OM PRAKASH KANT) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER

Jabalpur, Dated 14.09.2023

KRK, PS Copy of the Order forwarded to : The Appellant 1. The Respondent 2. The CIT (Judicial) 3. The PCIT 4. DR, ITAT, Jabalpur 5. 6. Guard File IqrarulHaque. आदेशानुसार/BY ORDER, स"या"पत ""त //// 1. ( Asst.