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Income Tax Appellate Tribunal, DELHI BENCH ‘A’, NEW DELHI
Before: Sh. Saktijit DeyDr. B. R. R. Kumar
Per Dr. B. R. R. Kumar, Accountant Member:
The present appeal has been filed by the assessee against the order of ld. CIT(A)-27, New Delhi dated 25.01.2019.
Following grounds have been raised by the assessee:
“1) The order of the Ld. Commissioner of Income Tax (Appeals) -I, New Delhi as well as the Ld. AO is bad in law, wrong on the facts and against the principles of natural justice.
2) That on the facts and in the circumstances of the case, the order of the Ld. CIT (Appeals) and Assessing Officer is against the legal principles of audi alteram partem and therefore the order is bad in law and needs to be quashed.
3) That on the facts and in the circumstances of the case, the Ld. Assessing Officer and the Ld. CIT(A) have erred in making the arbitrary addition which needs to be deleted. 4) That on the facts and in the circumstances of the case, even otherwise, the addition so made and sustained by the CIT(A) on ex-parte basis is wrong, illegal .totally baseless and without any merits keeping in view the facts of the case, the submissions of the appellant, the relevant provisions of the law, the judicial pronouncements.”
The assessee field return of income declaring total loss of Rs.4,95,25,480/- which has been revised to total loss of Rs.5,63,91,626/-. The assessment has been completed making an addition of Rs.3,05,00,000/- on account of share premium and loans.
The proceedings before the ld. CIT(A) were as under:
S. Date of Date of Remarks No Notice/show Hearing cause/ adjournment 1 15.09.2016 06.10.2016 None attended, nor any request for adjourned was filed nor any submissions were furnished. 2 20.10.2016 03.11.2016 The request for adjournment was filed by the AR of the appellant on 3.11.2016 3 24.11.2016 06.12.2016 None attended, nor any request for adjourned was filed nor any submissions were furnished on the date. The request for adjournment was filed by the appellant on 09.12.2016. 4 03.04.2017 12.04.2017 None attended, nor any request for adjourned was filed nor any submissions were furnished. 5 3.11.2017 20.11.2017 None attended, nor any request for adjourned was filed nor any submissions were furnished. 6 06.04.2018 16.04.2018 The request for adjournment was filed by the appellant on 16.04.2018. The case was adi. to 02.05.2018. 7 03.05.2018 15.05.2018 The request for adjournment was filed by the appellant on 02.05.2018. The case was adj. to 15.05.2018. Nobody attended nor filed any adj. on 15.05.2018 8 17.05.2018 05.06.2018 None attended, nor any request for adjourned was filed nor any submissions were furnished. 9 21.06.2018 26.06.2018 A show cause notice was issued, but none attended, nor any request for adjourned was filed nor any submissions were furnished. On 28.06.2018 the AR of the appellant filed written submissions. 10 22.10.2018 25.10.2018 The request for adjournment was filed by the appellant on 25.10.2018. The case was adj. to 12.11.2018. 11 25.10.2018 12.11.2018 None attended, nor any request for adjourned was filed nor any submissions were furnished. 12 22.11.2018 29.11.2018 The request for adjournment was filed by the appellant on 29.11.2018. The case was adj. to 17.12.2018. 13 18.12.2018 24.12.2018 None attended, nor any request for adjourned was filed nor any submissions were furnished. 14 18.01.2019 24.01.2019 None attended request for adj. received on 24.01.2019 by speed post.
Aggrieved with the order of the ld. CIT(A) confirming the order of the Assessing Officer, the assessee filed appeal before the Tribunal on 01.03.2019 and revised Form 36 has been filed vide letter dated 11.03.2019. The notice of hearing was issued on 02.12.2021 fixing the date of hearing on 18.01.2022 at the address given in From 36. No one attended on the date of hearing nor any adjournment letter was filed. We observe that there is no effect on payment of tax by the assessee as the assessed returned income culminated in loss of Rs.2.58 Crores. This only leads to conclusion that the assessee is aggrieved with the additions on a basis of principle and future effect of carry forward of losses. The assessee has failed to appear on 14 occasions before the ld. CIT(A) and has taken up the grounds before the Tribunal pertaining to legal principles of “audi alteram partem” and sustenance of order of the AO by the ld. CIT(A) on “ex-parte” basis. We strongly believe that every assessee has a right to appeal before the authorities against any addition or disallowance made to the returned income, at the same time, it is least expected that the assessee would comply to the notices issued by the authorities in an appropriate way. The assessee having miserably failed to attend before the ld. CIT(A) has taken the grounds of “audi alteram partem” before us. While the grievance of the assessee is not being preempted by us, at the same time, we feel that the conduct of the assessee is clogging the already burdened justice delivery system. Hence, we hereby direct the assessee to pay an amount of Rs.10,000/- to the “Prime Minister’s National Relief Fund” and approach the ld. CIT(A) for a fresh hearing denovo which shall be considered. The ld. CIT(A) is hereby directed to afford an opportunity of being heard to the assessee before conclusion of the proceedings.
In the result, the appeal of the assessee is allowed for statistical purpose. Order Pronounced in the Open Court on 03/03/2022.