M/S OM CONSTRUCTION CO.,JHUNJHUNU vs. INCOME TAX OFFICER, WARD-1, JHUNJHUNU
What did the Tribunal hold?
The Tribunal set aside the ex parte order of the CIT(A) due to non-service of notice. The matter was restored to the CIT(A)'s file for a fresh decision on merits after providing the assessee a reasonable opportunity of hearing.
What were the facts?
The assessee is aggrieved by an ex parte order of the CIT(A) concerning disallowances under Section 40A(3) for cash payments exceeding Rs. 20,000 and ad hoc disallowance on vehicle expenses paid in cash. The assessee claimed the final notice from the CIT(A) was not served.
What were the issues?
Whether the ex parte order passed by the CIT(A) was valid when the assessee claimed non-receipt of hearing notice. The need for a fresh adjudication on merits after providing a proper opportunity of hearing.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, JAIPUR BENCHES (SMC
Before: SHRI RAMESH C SHARMAvk;dj vihy la-@ITA No. 555/JP/2018
ORDER PER: R.C. SHARMA, A.M. This is an appeal filed by the assessee against the ex parte order of ld.CIT(A)-3, Jaipur dated 06/02/2018 for the A.Y. 2012-13 in the matter of order passed U/s 143(3) of the Income Tax Act, 1961 (in short, the Act).
In this appeal, the assessee is basically aggrieved for disallowance made U/s 40A(3) of the Act in respect of amount paid in cash above Rs. 20,000/-. The assessee is also aggrieved for ad hoc disallowance out of vehicle expenses paid in cash.
2 ITA 555/JP/2018 M/s Om Construction Co. Vs ITO 3. It was argued by the ld AR of the assessee that final notice from the ld. CIT(A) fixing the date of hearing was not served on him, therefore, he could not appeal before the ld. CIT(A). In support the same, the ld. AR filed an affidavit. Considering the affidavit filed by the assessee and in the substantial interest of justice, I set aside the ex parte order of the ld. CIT(A) and the matter is restored back to his file for deciding the matter afresh on merit after providing reasonable opportunity of hearing to the assessee. The assessee is also directed to appear before the ld. CIT(A) within 60 days from the date of receipt of this order. I direct accordingly.
In the result, appeal of the assessee is allowed for statistical purposes only.
Order pronounced in the open court on 22nd November, 2019
More judgments on Section 40A(3)
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- Saiyed Zaharul Alam, Murshidabad vs I.T.O., Ward - 42(1), MurshidabadITA 2233/KOL/2026[2013-2014]Status: Disposed16 Oct 2026AY 2013-2014
- M/S Sadana Electric Store, Lucknow vs DCIT Range-6, LucknowITA 283/LKW/2024[2014-15]Status: Disposed30 Sept 2026AY 2014-15
- Nagendra Prasad, Patna vs ITO Ward -5(3) Patna, Dak BanglowITA 362/PAT/2026[2016-17]Status: Disposed29 Sept 2026AY 2016-17
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