AMAN NARENDRAKUMAR AGRAWAL,AMRAVATI vs. INCOME TAX OFFICER-WARD 1, AMRAVATI

One of the grounds raised by the assessee in the present appeal is that no adequate opportunity of being heard was afforded by the Ld.CIT(A).

At the outset, learned counsel for the assessee submitted that Ld.CIT(A), while confirming the addition made by the learned Assessing Officer (AO) under section 69C of the Act, had not granted sufficient opportunity of hearing to the assessee. He, therefore, prayed that one more opportunity may kindly be granted to the assessee to represent the matter before the Ld. CIT(A).

Per contra, learned Departmental Representative (DR) did not raise any serious objection if the matter is restored to the file of Ld.CIT(A) for fresh adjudication.

We have heard rival submissions and perused the material available on record. We observe that assessee, an individual, had filed the return of income for A.Y. 2022-23 on 05/11/2024 declaring total income of Rs.10,43,415/-. The return was selected for scrutiny and statutory notices under sections 143(2) & 142(1) of the Act were issued and duly served upon the assessee. Since there was non- compliance on the part of the assessee, Ld.AO completed the assessment under section 143(3) r.w.s. 144B of the Act and made an addition of Rs.1,68,08,309/- under section 69C of the Act on account of bogus purchases in entirety from two concerns, thereby determining the total income at Rs.1,78,51,759/-.

The assessee carried the matter in appeal before the Ld.CIT(A). However, the assessee failed to respond to the notices of hearing issued by the Ld.CIT(A). We further observe from paragraph 5 of the impugned order that Ld.CIT(A), relying upon the judgment of the Hon’ble Supreme Court in the case of B.N. Bhattachargee (118 ITR 461) (SC), dismissed the appeal without adjudicating the issues on merits. We note that the Hon’ble Bombay High Court in the case of Pr. CIT (Central) vs. Premkumar Arjundas Luthra (HUF) [2017] 297 CTR 614 (Bom.) has held that the CIT(A)/NFAC is duty bound to dispose of the appeal on merits even while passing an ex-parte order. Respectfully following the ratio laid down therein, and considering the peculiar facts and circumstances of the case, we deem it appropriate to restore the entire lis back to the file of the Ld. CIT(A) for fresh adjudication on merits after providing reasonable opportunity of being heard to the assessee. The assessee is also directed to remain diligent and extend full cooperation in the appellate proceedings and shall not seek unnecessary adjournments except for reasonable cause. The assessee shall furnish all relevant details and evidences in support of the grounds raised in appeal, upon which the Ld.CIT(A) shall adjudicate the matter by examining the same and passing a speaking order in accordance with the provisions of section 250(6) of the Act. Grounds of appeal raised by the assessee are hence allowed for statistical purposes.

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