SERENE COUNTY WELFARE ASSOCIATION,HYDERABAD vs. INCOME TAX OFFICER, WARD-8(1), HYDERABAD

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ITA 954/HYD/2018Status: DisposedITAT Hyderabad17 September 2020AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had provided multiple opportunities for hearing, but the assessee failed to appear. However, in the interest of justice, the matter was remitted back to the CIT(A) for a fresh consideration on merits.

What were the facts?

The assessee appealed an order of the CIT(A) confirming a penalty under Section 271B. The assessee argued that the CIT(A) passed an ex-parte order without providing an opportunity to be heard.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order without providing adequate opportunity to the assessee, and whether the penalty under Section 271B was justified.

Which sections of the Income-tax Act were involved?

Section 271B,Section 250(6)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “B”, HYDERABAD

Before: SMT. P. MADHAVI DEVI & SHRI A. MOHAN ALANKAMONY

For Appellant: Shri S. Rama Rao
For Respondent: Shri Rajat Mitra, DR
Hearing: 15/09/2020Pronounced: 17/09/2020

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “B”, HYDERABAD BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER (Through Virtual Hearing) Assessment Year:2011-12 Serene County Owners Vs. Income Tax Officer, Welfare Association, Ward-8(1), Hyderabad. Hyderabad. PAN: AADAS 9130 P (Appellant) (Respondent) Assessee by: Shri S. Rama Rao Revenue by: Shri Rajat Mitra, DR Date of hearing: 15/09/2020 Date of pronouncement: 17/09/2020 ORDER PER A. MOHAN ALANKAMONY, AM.:

This appeal is filed by the assessee against the order of the Ld. CIT (A)-8, Hyderabad in appeal No. 10../CIT(A)-8/Hyd/2017-18, dated 28/02/2018 passed U/s. 271B r.w.s 250(6) of the Act for the AY: 2011- 12.

2.

The assessee has raised four grounds in its appeal which are extracted herein below for reference:-

“1. The order of the Ld CIT (A) is erroneous both on facts and in law.

2. The Ld CIT (A) erred in disposing the appeal without providing further opportunity to the appellant.

3.

The Ld CIT (A) erred in confirming penalty U/s. 271B of Rs. 1,50,000/- levied by the Assessing Officer. 4. Any other ground or grounds that may be urged at the time of hearing.”

3. At the outset, the Ld. AR submitted before us that the Ld. CIT (A) has passed ex-parte order without providing an opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A) in order to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that proper opportunities had been provided to the assessee however, on the given dates of hearing, neither the assessee nor it Representative appeared before the Ld. CIT (A). It was further submitted that the Ld. CIT (A) had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A) does not call for any interference.

4.

We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, We find merit in the submissions of the Ld. DR. The Ld. CIT (A) had posted the case on four occasions i.e., on 17/11/2017; 07/12/2017; 18/12/2017 and 13/02/2018. However, none appeared on behalf of the assessee before the CIT(A) on the date of hearing. Therefore, the Ld. CIT (A) was left with no other option except to adjudicate the appeal ex-parte based on the material available on record. In this situation, We do not find much strength in the arguments advanced by the ld. AR. However, considering the prayer of the Ld. AR, and in the interest of justice, We hereby remit the matter back to the file of Ld. CIT (A) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (A) in the proceedings failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on the record. It is ordered accordingly.

5.

In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove.

Pronounced in the open Court on 17th September, 2020.

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