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Income Tax Appellate Tribunal, MUMBAI BENCH “G” MUMBAI
Before: SHRI KULDIP SINGH & SHRI OM PRAKASH KANT
This appeal by the assessee is directed against order dated 29.11.2022 passed by the Ld. Commissioner of Income-tax – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2017-18, raising following grounds:
1. On the fact and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in passing the impugned order dated 29.11.2022 ex parte. Your appellant, therefore, prays
S Amit Speciality Chemicals Pvt. Ltd S Amit Speciality Chemicals Pvt. Ltd 2 ITA No. 173/M/2023 that the impugned order be quashed and the matter may be that the impugned order be quashed and the matter may be that the impugned order be quashed and the matter may be remanded back to the file of the Ld. CIT(A). remanded back to the file of the Ld. CIT(A).
2. On the facts and in the circumstances of the case, and also 2. On the facts and in the circumstances of the case, and also 2. On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in confirming in law, the Ld. CIT(A) erred in confirming the disallowance of the disallowance of Rs.20,85,691/ Rs.20,85,691/- made by the Ld. AO u/s. 14A of the Act. Your made by the Ld. AO u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid disallowance us. appellant, therefore, prays that the aforesaid disallowance us. appellant, therefore, prays that the aforesaid disallowance us. 14A may be restricted to such amount as may be warranted. 14A may be restricted to such amount as may be warranted. 14A may be restricted to such amount as may be warranted.
3. On the facts and in the circumstances of the case, On the facts and in the circumstances of the case, On the facts and in the circumstances of the case, and also in law, the Ld. CIT(A) erred in confirming the addition of in law, the Ld. CIT(A) erred in confirming the addition of in law, the Ld. CIT(A) erred in confirming the addition of Rs.20,85,691/ Rs.20,85,691/- made by the Ld. AO while computing book made by the Ld. AO while computing book profit u/s. 115JB being disallowance u/s. 14A of the Act. profit u/s. 115JB being disallowance u/s. 14A of the Act. profit u/s. 115JB being disallowance u/s. 14A of the Act. Your appellant, therefore, prays that the aforesaid addition of Your appellant, therefore, prays that the aforesaid addition of Your appellant, therefore, prays that the aforesaid addition of Rs.20,85,691/ 1/- be deleted from the book profit computed u/s. be deleted from the book profit computed u/s. 115JB.
At the outset, the Ld. Counsel of the assessee submitted that At the outset, the Ld. Counsel of the assessee submitted that At the outset, the Ld. Counsel of the assessee submitted that the Ld CIT(A) has passed passed ex-partee order against the assessee against the assessee, without without taking taking into into consideration consideration written written submission, submission information/documents ents etc on behalf of the assessee etc on behalf of the assessee and therefore order of the Ld. CIT(A) might be restored back for deciding afresh order of the Ld. CIT(A) might be restored back for deciding afresh order of the Ld. CIT(A) might be restored back for deciding afresh and the assessee is willing to file all the necessary documents and the assessee is willing to file all the necessary documents and the assessee is willing to file all the necessary documents submissions in support of its claim. submissions in support of its claim.
We have heard rival submission of t We have heard rival submission of the parties on the issue he parties on the issue-in- dispute and perused the relevant material on record. The relevant dispute and perused the relevant material on record. The relevant dispute and perused the relevant material on record. The relevant finding of the Ld. CIT(A) deciding the case finding of the Ld. CIT(A) deciding the case ex-partee partee is reproduced as under:
“4. Findings: 4. Findings: In this case, Notice was issued on 18.01.2021 to the appellant In this case, Notice was issued on 18.01.2021 to the appellant In this case, Notice was issued on 18.01.2021 to the appellant to furnish written submissions and documents on or before to furnish written submissions and documents on or before to furnish written submissions and documents on or before 25.02.2021. It was specifically stated in the said notice that if 25.02.2021. It was specifically stated in the said notice that if 25.02.2021. It was specifically stated in the said notice that if no submissions/ information/ documents were received no submissions/ information/ documents were received no submissions/ information/ documents were received
S Amit Speciality Chemicals Pvt. Ltd S Amit Speciality Chemicals Pvt. Ltd 3 ITA No. 173/M/2023 within the stipu within the stipulated time period, it would be presumed that lated time period, it would be presumed that the appellant had nothing to say in the matter and the the appellant had nothing to say in the matter and the the appellant had nothing to say in the matter and the department may proceed ahead based on material available department may proceed ahead based on material available department may proceed ahead based on material available on record. In view of the fact that no written submissions/ on record. In view of the fact that no written submissions/ on record. In view of the fact that no written submissions/ information/ documents were received fr information/ documents were received from the appellant, nor om the appellant, nor any adjournment sought, another notice was issued on any adjournment sought, another notice was issued on any adjournment sought, another notice was issued on 10.12.2021 to the appellant to furnish written submissions, 10.12.2021 to the appellant to furnish written submissions, 10.12.2021 to the appellant to furnish written submissions, information and documents on or before 17.12.2021. It was information and documents on or before 17.12.2021. It was information and documents on or before 17.12.2021. It was specifically stated in the said notice that if no submissions/ specifically stated in the said notice that if no submissions/ specifically stated in the said notice that if no submissions/ information/ documents were received within the stipulated information/ documents were received within the stipulated information/ documents were received within the stipulated time period, it would be presumed that the appellant had time period, it would be presumed that the appellant had time period, it would be presumed that the appellant had nothing further to say in the matter and the appeal would be nothing further to say in the matter and the appeal would be nothing further to say in the matter and the appeal would be decided on merits on the basis of material available on record. decided on merits on the basis of material available on record. decided on merits on the basis of material available on record. No written subm No written submissions/ information/ documents were issions/ information/ documents were received, nor any adjournment sought. Accordingly, yet received, nor any adjournment sought. Accordingly, yet received, nor any adjournment sought. Accordingly, yet another notice was issued on 20.12.2021 to the appellant to another notice was issued on 20.12.2021 to the appellant to another notice was issued on 20.12.2021 to the appellant to furnish written submissions, information and documents on or furnish written submissions, information and documents on or furnish written submissions, information and documents on or before27.12.2021. In view of the fact that before27.12.2021. In view of the fact that before27.12.2021. In view of the fact that no written submissions/ information/ documents have been received till submissions/ information/ documents have been received till submissions/ information/ documents have been received till date from the appellant nor any adjournment sought, appeal date from the appellant nor any adjournment sought, appeal date from the appellant nor any adjournment sought, appeal is being decided on the basis of material available on record. is being decided on the basis of material available on record. is being decided on the basis of material available on record. Despite repeated notices as delineated above, the appellant Despite repeated notices as delineated above, the appellant Despite repeated notices as delineated above, the appellant has not seen it fit to file any submissions, information or not seen it fit to file any submissions, information or not seen it fit to file any submissions, information or documents during appeal proceedings. The only material on documents during appeal proceedings. The only material on documents during appeal proceedings. The only material on record in this case is Form 35 filed by appellant and copy of record in this case is Form 35 filed by appellant and copy of record in this case is Form 35 filed by appellant and copy of assessment order dated 30.11.2019 filed by the appellant assessment order dated 30.11.2019 filed by the appellant assessment order dated 30.11.2019 filed by the appellant along with Form 35. Th along with Form 35. The material on record has been carefully e material on record has been carefully perused. There is no material on record to warrant interference in the There is no material on record to warrant interference in the There is no material on record to warrant interference in the order of the AO. order of the AO. In view of the fact that there is no material on record to In view of the fact that there is no material on record to In view of the fact that there is no material on record to warrant interference in the order of the AO, the Grounds of warrant interference in the order of the AO, the Grounds of warrant interference in the order of the AO, the Grounds of Appeal are hereby dismissed. e hereby dismissed.” 3.1 In view of the above, it is evident that In view of the above, it is evident that despite notifying despite notifying no written submission/documents from the assessee’s side have been written submission/documents from the assessee’s side have been written submission/documents from the assessee’s side have been filed and thus appeal has been decided without considering the filed and thus appeal has been decided without filed and thus appeal has been decided without assessee’s side by the Ld. CIT(A) by the Ld. CIT(A) and action of the Assessing officer on of the Assessing officer
S Amit Speciality Chemicals Pvt. Ltd S Amit Speciality Chemicals Pvt. Ltd 4 ITA No. 173/M/2023 has been affirmed. Before us, the Ld. Counsel of the assessee has . Before us, the Ld. Counsel of the assessee has . Before us, the Ld. Counsel of the assessee has submitted that assessee could not respond to the notices issued by submitted that assessee could not respond to the notices issued by submitted that assessee could not respond to the notices issued by the Ld. CIT(A) , because , because not being familiar with the e with the e-mail facility of correspondence. Howeve . However, the assessee is now willing to file his r, the assessee is now willing to file his written submission/documents before the Ld. CIT(A). In view of the written submission/documents before the Ld. CIT(A). In view of the written submission/documents before the Ld. CIT(A). In view of the facts and circumstances of the case and facts and circumstances of the case and in interest of substantial interest of substantial justice, we feel it appropriate to restore the appeal back to the file of we feel it appropriate to restore the appeal back to the file of we feel it appropriate to restore the appeal back to the file of the Ld. d. d. CIT(A) CIT(A) CIT(A) for for for deciding deciding deciding afresh afresh afresh after after after considering considering considering the the the submission/documents on behalf of the assessee. Accordingly, the submission/documents on behalf of the assessee. Accordingly, the submission/documents on behalf of the assessee. Accordingly, the grounds of appeal raised by the assessee are allowed for statistical grounds of appeal raised by the assessee are allowed for statistical grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal filed by the assessee is allow In the result, the appeal filed by the assessee is allow In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open Court on Order pronounced in the open Court on 31/03/2023. 03/2023. Sd/- Sd/- Sd/ (KULDIP SINGH KULDIP SINGH) (OM PRAKASH KANT OM PRAKASH KANT) JUDICIAL MEMBER JUDICIAL MEMBER ACCOUNTANT MEMBER ACCOUNTANT MEMBER Mumbai; Dated: 31/03/2023 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to Copy of the Order forwarded to :
1. 1. The Appellant 2. The Respondent.
3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
S Amit Speciality Chemicals Pvt. Ltd S Amit Speciality Chemicals Pvt. Ltd 5 ITA No. 173/M/2023