What did the Tribunal hold?

The tribunal found merit in the assessee's argument that they lacked an opportunity to present evidence before the CIT(A). Therefore, the matter was remanded to the CIT(A) for fresh consideration, allowing the assessee to file supporting evidence.

The assessee appealed against an ex-parte assessment order confirmed by the CIT(A), NFAC. The assessee argued they did not get an opportunity to present evidence before the CIT(A). The revenue conceded that the assessee had no occasion to substantiate their claims.

What were the issues?

Whether the CIT(A) was justified in confirming an ex-parte assessment order without providing the assessee an opportunity to present evidence.

M/S Sarovar Enterprises, Panvel vs ITO | ITAT Pune 2023

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI INTURI RAMA RAO & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri Hari Krishan

For Respondent: Shri Nitin K. Patil

आदेश / ORDER

PER S.S. VISWANETHRA RAVI, JM :

This appeal by the assessee against the order dated 05-09-2022 passed by the National Faceless Appeal Centre, Delhi (“NFAC”) for assessment year 2011-12.

We find that this appeal was filed with a delay of 03 days. Upon hearing both the parties, the delay of 03 days is condoned.

The assessee raised five grounds of appeal amongst which the only issue emanates for our consideration is as to whether the CIT(A), NFAC, Delhi justified in confirming the assessment order dated 19-03-2014 passed u/s. 143(3) of the Act ex-parte of the assessee.

4. At the outset, we note that the AO made additions on account of non-existent/unproved creditors, unexplained cash credits in capital, unproved loan, interest on capital to partners and remuneration to partners vide para Nos. 4, 5, 6 and 7, respectively of his order. The assessee challenged the same before the CIT(A), NFAC, Delhi by raising grounds which are reproduced at page 2 of the impugned order. The ld. AR submits that there was no occasion for the assessee to substantiate and rebut the claims and findings of AO before the CIT(A), NFAC, Delhi and prayed for an opportunity for the assessee and the assessee is ready to furnish relevant details in support of its contentions before the CIT(A), NFAC, Delhi.

The ld. DR fairly conceded that there was no occasion for the assessee before the CIT(A), NFAC, Delhi to substantiate the claim. On perusal of the impugned order, we note that the assessee raised four grounds of appeal before the CIT(A), NFAC, Delhi, challenged the additions made by the AO and all such additions requires necessary evidences for fair adjudication. Admittedly, there was no such assistance from the assessee before the CIT(A), NFAC, Delhi which is evident from para 3 of the impugned order. Therefore, we find force in the arguments of ld. AR that it requires adjudication on remand. Thus, taking into facts and circumstances of the case and in the interest of justice, we deem it proper to remand the matter to the file of CIT(A), NFAC, Delhi for its fresh consideration in view of observations made by us here-in-above. The assessee is liberty to file evidences, if any, in support of its claim. Thus, the order of CIT(A), NFAC, Delhi is set aside and the grounds raised by the assessee are allowed for statistical purpose.

In the result, the appeal of assessee is allowed for statistical purpose.

Order pronounced in the open court on 29th May, 2023.

M/S SAROVAR ENTERPRISES,PANVEL vs. ITO, WARD-2, PANVEL

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