KEERAN MULTIBUSINESS PRIVATE LIMITED ,MUMBAI vs. INCOME TAX OFFICER -12(3)(3), MUMBAI, MUMBAI

The grounds of the appeal raised by the assessee are as under:

That, the learned CIT(A) grossly erred, both on facts and in law, in dismissing the appeal of the appellant, ex-parte, under the provisions of 249(3) of the Act and rejecting the appellant's request for condonation of delay without giving proper and effective opportunity of being heard to the appellant.

That, without prejudice to the above, the learned CTT(A) grossly erred, both on facts and in law, in confirming the action of the AO for determining the Total income of the appellant company at Rs.2,21,46,994/- as against the Returned Income of Rs.4,74,480/- thereby making addition of Rs.2,16,72,514/- for the relevant assessment year by framing an ex-parte Assessment Order under s.144 r.w.s. 147 of the Income-Tax Act, 1961, which is quite unjustified, unwarranted and bad-in- law.

That, without prejudice to the above, the learned CIT(A) grossly erred, both on facts and in law, in upholding the addition of Rs.2,16,72,514/- made by the AO on the allegation of unexplained cash deposits in bank account by invoking the provisions of s.68 of the Act without properly considering and appreciating the facts and circumstances of the case. Keeran Multibusiness Private Limited 3

That, the appellant company further craves leave to add, alter or amend the foregoing ground of appeal as and when considered necessary.”

At the outset, Ld. Authorized Representative on behalf of the assessee [in short ‘Ld.AR’] submitted that the appeal filed before the Tribunal is delayed by 190 days, to explain the reasons for delay an affidavit is submitted by the assessee stating that all notices and order by Ld. CIT(A) was sent on the email ID golugrt@gmail.com, whereas in form No. 35 assessee’s preferred email ID was ajayatul12@gmail.com. Accordingly, the assessee was unable to get the notices from the First Appellate Authority and therefore in absence of assessee’s representation the appeal was dismissed on ex-parte basis. Considering the reasons furnished by Ld.AR, we find that the delay was occasion unintentionally, on account of reasons beyond the control of assessee, as the assessee was not informed about the notices issued by First Appellate Authority. Therefore, the delay has been condoned. Keeran Multibusiness Private Limited 4

It is further appraised by the Ld AR that, before Ld. CIT(A) the appeal of assessee was dismissed on account of delay in filing of appeal. To justify about the reasons for delay, it is submitted that that the assessment in the present case was completed u/s 144 of the Act. The assessee was not aware about the assessment proceedings, for the reason that the notices and communications were send on the address mentioned in ITR, whereas, the building in which the assessee’s office was located was under construction in that period and therefore the assessee had shifted its office to another place. It is also submitted that the assessee accepts its mistake that it did not inform the department about change of address. Due to such reasons the assessee had not received any correspondence from the office of Ld. AO and even the order was passed u/s 144 r.w.s 147 of the Act. It is clarified that the delay occasion before the Ld. CIT(A) was also unintentional and beyond the control of assessee. It is submitted by Ld. AR that the delay in filing of appeal may be condoned and the assessee may kindly be provided with another chance to furnished necessary details before Ld.AO to substantiate that the addition made to the income of assessee on Keeran Multibusiness Private Limited 5

Per contra Ld. CIT DR representing the revenue submitted that it was the duty of the assessee that any change in its address should have been informed to the authorities. But the assessee had never submitted such information to the department. Therefore, the reasons for condonation of delay are not justifiable, the CIT(A) had thus rightly dismissed the appeal of assessee. According, the order passed by Ld. CIT(A) should be confirmed. Further when it is confronted that the assessee, due to some bonafide reasons could not appeared before the authorities below and there was no cash deposit in the bank of assessee, also the findings of authorities below are without hearing the assessee at both the stages, so in the interest of justice to reach on legitimate conclusion, the matter should be restored back for fresh adjudication to the file of Ld. AO. On this preposition Ld. CIT DR conceded and agreed if the matter is Keeran Multibusiness Private Limited 6

We have considered the rival submission perused the material on record and contention raised by Ld. AR on behalf of the assessee. Admittedly, in the present case the assessee was noncompliant before the Ld.AO as well as before Ld. CIT(A), however there were bonafide reasons for assessee’s non- compliance that first before the Ld.AO the assessee’s office were shift from one place to another, which the assessee should have informed to the department and thereafter, before the Ld. CIT(A) the communication were send on an email id different than the email id preferred by the assessee in form No. 35. Under such facts and circumstances, as requested by the Ld. AR and fairly agreed by the Ld. CIT DR, to meet the ends of justice, it is considered appropriate to restore this matter back to the file of assessing officer for verification of the alleged transactions of cash deposit and completed the assessment afresh. Keeran Multibusiness Private Limited 7

Needless to say, the assessee may be provided with reasonable opportunities of being heard. The assessee is directed to assist proactively in the assessment proceeding without any fail and respond to the notices and communication from the ld. AO in a time bound manner, to discharge the burden cast upon it. In case the assessee fails to do so the revenue authorities would be at liberty to decide the matter in accordance with the mandate of law.

In the result the appeal of the assessee is allowed for statistical purposes, in terms of our aforesaid observations.