SHRI. MARUTI WIND PARK DEVELOPERS,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 14, PUNE

These are two appeals filed by two different assessees against the orders of learned CIT(A) 7, Pune, in Appeal No. PN/CIT(A)-7/Cir.

Ms. Deepa Khare is represented for the assessees and Shri Deepak Garg is represented for the Revenue.

It was submitted by the learned A.R. that the appeals of the assessees have been disposed of ex parte. It was her submission that the appeals of the assessees have been dismissed on the ground that admitted tax in respect of returned income has not been paid before filing of the appeals. It was her submission that consequently, the learned CIT(A) has dismissed the appeals of the assessees for violation of provision of sec. 249(4) of the Income-tax Act, 1961 (hereinafter referred to “the Act”). It was further her submission that having dismissed the appeals as non-est, the learned CIT(A) proceeded to adjudicate the issue on merits which were also held against the assessee. It was her submission that it is an admitted fact that when the return of income was filed, the admitted tax has not been paid. It was her submission that returns of income have been filed in both the cases on 30-3-2015. It was also her submission that however, the assessee had made substantial payment against the assessed tax which admittedly covered the requirement of tax due on the admitted tax. It was her submission that without considering the said fact, the learned CIT(A) had proceeded to treat the appeals of the assessee as non-est and further proceeded to dismiss the issues raised in the appeals of the assessee on merits. It was her submission in the case of Shri Maruti Infrastructure Developers, that as on 31-3-2018 itself, the assessee had made the payment of Rs. 2.00 crores. It was the submission that the assessee had no objection if the issue is restored back to the file of the A.O for verification and re-adjudication after setting aside the orders of the learned CIT(A). It was fairly agreed by the learned A.R that fresh evidence was required to be filed before the A.O.

We have heard the rival contentions and perused the material on record. A perusal of the orders of the learned CIT(A) clearly shows that the assessees have not availed of the opportunity granted by the learned CIT(A) at the time of hearing of the appeals. The assessees have also placed before us certain challans which show the payment of taxes before adjudication of the appeals by the learned CIT(A) which would adequately cover the taxes on the returned income. It is also noticed that the learned A.R has also specifically requested for an opportunity to produce further evidence before the A.O. Under the circumstances, considering the above facts and principles of natural justice, we are of the view that the orders of the learned CIT(A) are liable to be set aside and the issues raised in these appeals restored back to the file of the A.O for re-adjudication and we do so accordingly. The A.O shall verify the facts of payment of admitted tax and then re-adjudicate the issue after granting the assessee adequate opportunity of being heard and to enable them to produce all such evidence as are necessary to substantiate their claims.

In the result, the appeals of the assessees are partly allowed for statistical purposes. Order pronounced in open Court on this 18th day of February 2020.