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Facts
The assessee filed their return of income and subsequently received an intimation under Section 143(1) making an addition for Long Term Capital Gain based on Section 50C. The assessee appealed to the Ld. CIT(A) after not being given an opportunity to explain. The Ld. CIT(A) dismissed the appeal ex-parte due to non-compliance.
Held
The Tribunal found that the Ld. CIT(A) dismissed the appeal ex-parte without examining the merits. The Tribunal restored the matter to the Ld. CIT(A) for fresh adjudication after giving the assessee a proper opportunity.
Key Issues
Whether the Ld. CIT(A) was justified in dismissing the appeal ex-parte without considering the merits of the case, and if the matter should be restored for proper adjudication.
Sections Cited
143(1), 143(1)(a), 50C
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Income Tax Appellate Tribunal, MUMBAI BENCH “F” MUMBAI
Before: MS. KAVITHA RAJAGOPAL & SMT. RENU JAUHRI
ORDER PER RENU JAUHRI, AM
This appeal of the assessee is directed against order dated 29.02.2024 passed by the Ld. Additional/Joint Commissioner of Income-tax (Appeals), Prayagraj [hereinafter shall be referred as ‘the Ld. CIT(A)’] for assessment year 2021-22, raising following grounds:
1. The orders passed by the learned lower authorities are bad in law and bad in facts 2. The learned First Appellate Authority have grossly erred in passing ex-parte order, inasmuch as, the appellant had specifically requested for adjournment & said adjournment specifically requested for adjournment & said adjournment specifically requested for adjournment & said adjournment request was not declined. request was not declined.
3. The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab- The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab initio void inasmuch as no initio void inasmuch as no notice (Intimation) in terms of First notice (Intimation) in terms of First proviso to sec. 143 (1) (a) of the I. T. Act, 1961, was issued proviso to sec. 143 (1) (a) of the I. T. Act, 1961, was issued proviso to sec. 143 (1) (a) of the I. T. Act, 1961, was issued and served on the appellant. and served on the appellant.
The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab- The Intimation issued u/s 143 (1) of the I. T. Act, 1961, is ab initio void inasmuch as impugned adjustment to total income initio void inasmuch as impugned adjustment to total income initio void inasmuch as impugned adjustment to total income is beyond the scope & ambit of section 143 (1) (a) of the I. T. is beyond the scope & ambit of section 143 (1) (a) of the I. T. is beyond the scope & ambit of section 143 (1) (a) of the I. T. Act, 1961. Act, 1961.
5. The learned Assessing Officer has grossly erred in makin The learned Assessing Officer has grossly erred in making The learned Assessing Officer has grossly erred in makin an adjustment to returned income at Rs.33,72, 131/- on an adjustment to returned income at Rs.33,72, 131/ an adjustment to returned income at Rs.33,72, 131/ account of Long Term Capital Gain account of Long Term Capital Gain - No reason has been No reason has been assigned for impugned adjustment. assigned for impugned adjustment.
The learned Assessing Officer has grossly erred in making The learned Assessing Officer has grossly erred in making The learned Assessing Officer has grossly erred in making an adjustment to returned income at Rs. 33,72, 131/- by an adjustment to returned income at Rs. 33,72, 131/ an adjustment to returned income at Rs. 33,72, 131/ recourse to sec. 50 C (1) even though the appellant had recourse to sec. 50 C (1) even though the appellant had recourse to sec. 50 C (1) even though the appellant had claimed the application of provisions of section 50 C (2) of the claimed the application of provisions of section 50 C (2) of the claimed the application of provisions of section 50 C (2) of the Act - No reason has been assigned for rejection of appellant's No reason has been assigned for rejection of appellant's No reason has been assigned for rejection of appellant's claim.
Having regard to the facts of the case, provisions of law and Having regard to the facts of the case, provisions of law and Having regard to the facts of the case, provisions of law and judicial propositions, impugned adjustment at Rs. 33,72, judicial propositions, impugned adjustment at Rs. 33,72, judicial propositions, impugned adjustment at Rs. 33,72, 131/- to returned income is unwarranted and to returned income is unwarranted and uncalled uncalled for.
Brief facts of the case are that the assessee filed return of Brief facts of the case are that the assessee filed return of Brief facts of the case are that the assessee filed return of income declaring income of Rs.65,52,150/ income declaring income of Rs.65,52,150/- on 04.12.2021. on 04.12.2021. Intimation u/s 143 Intimation u/s 143(1) was issued by the CPC on 28.12.2022 (1) was issued by the CPC on 28.12.2022 determining the income at Rs.99,24,290/ determining the income at Rs.99,24,290/-. The CPC made an . The CPC made an adjustment adjustment adjustment to to to returned returned returned income income income by by by making making making addition addition addition of of of Rs.33,72,131/- after invoking provisions of section 50C of the Act. after invoking provisions of section 50C of the Act. after invoking provisions of section 50C of the Act. Since no opportunity was given to the Since no opportunity was given to the assessee before making the ee before making the adjustment, the assessee filed an appeal before the Ld. CIT(A) he assessee filed an appeal before the Ld. CIT(A) he assessee filed an appeal before the Ld. CIT(A) against the intimation u/s 143(1) of the Act. Three notices were against the intimation u/s 143(1) of the Act. Three notices were against the intimation u/s 143(1) of the Act. Three notices were issued by the Ld. CIT(A) to the assessee on 02.02.2024, 01.04.2025 issued by the Ld. CIT(A) to the assessee on 02.02.2024, 01.04.2025 issued by the Ld. CIT(A) to the assessee on 02.02.2024, 01.04.2025 and 08.04.2025. Since no reply was and 08.04.2025. Since no reply was furnished by the assessee to furnished by the assessee to any of these notices, the Ld. CIT(A) dismissed the appeal ex-parte any of these notices, the Ld. CIT(A) dismissed the appeal any of these notices, the Ld. CIT(A) dismissed the appeal without examining the merits of the case. without examining the merits of the case.
Aggrieved with the order of the Ld. CIT(A), the assessee has Aggrieved with the order of the Ld. CIT(A), the assessee has Aggrieved with the order of the Ld. CIT(A), the assessee has preferred an appeal before the Tribunal. preferred an appeal before the Tribunal.
4. We have heard the the rival submissions and perused the relevant rival submissions and perused the relevant materials on record materials on record. It is seen that the Ld. CIT(A) has simply . It is seen that the Ld. CIT(A) has simply dismissed the appeal ex dismissed the appeal ex-parte without going into the merits of the parte without going into the merits of the grounds taken by the assessee. In the interest of justice, we deem it grounds taken by the assessee. In the interest of justice, we deem it grounds taken by the assessee. In the interest of justice, we deem it appropriate to restore the matter to Ld. CIT(A) for fresh adjudication propriate to restore the matter to Ld. CIT(A) for fresh adjudication propriate to restore the matter to Ld. CIT(A) for fresh adjudication on merits after giving proper opportunity to the assessee. The on merits after giving proper opportunity to the assessee. The on merits after giving proper opportunity to the assessee. The assessee is also directed to make requisite compliance before Ld. assessee is also directed to make requisite compliance before Ld. assessee is also directed to make requisite compliance before Ld. CIT(A).
In the result, the appeal of the assessee is a In the result, the appeal of the assessee is a In the result, the appeal of the assessee is allowed for statistical purposes.