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Facts
The assessee's appeal is against an order by the CIT(A) NFAC. The CIT(A) confirmed the assessment order which assessed the total income at Rs. 7,06,71,532 against a returned income of Rs. 2,16,550. The assessee alleged violation of natural justice and lack of proper opportunity to be heard.
Held
The Tribunal held that the assessee was not given adequate opportunity to present its case, especially concerning the adjournment request which was ignored. The CIT(A) passed the order on the same day the adjournment was requested.
Key Issues
Whether the CIT(A) erred in upholding the assessment order without providing a sufficient opportunity of being heard to the assessee, and by not considering the adjournment request.
Sections Cited
143(3), 144B, 145(3)
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Income Tax Appellate Tribunal, MUMBAI BENCH “E” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI ANIKESH BANERJEE
ORDER
PER OM PRAKASH KANT, AM
This appeal by the assessee is directed against order dated 06.11.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2018-19, raising following grounds:
1. Ground l. That the assessment order u/s 143(3) r.s.w.144B of the Income Tax Act, 1961 ("the Act") dated 10.09.2021 passed by the Assessing Officer ("AO") and the additions/disallowances made therein are illegal, bad in law additions/disallowances made therein are illegal, bad in law additions/disallowances made therein are illegal, bad in law and without jurisdiction. and without jurisdiction.
2. Ground The CIT (A) NFAC has erred in law and in facts in Ground The CIT (A) NFAC has erred in law and in facts in Ground The CIT (A) NFAC has erred in law and in facts in confirming the assessment order passed by the AO confirming the assessment order passed by the AO confirming the assessment order passed by the AO assessing t assessing the total income of Rs. 7,06,71,532 as against he total income of Rs. 7,06,71,532 as against returned income of Rs. 2,16,550/ returned income of Rs. 2,16,550/-.
3. Ground That the CIT(A) NFAC has erred in deciding the Ground That the CIT(A) NFAC has erred in deciding the Ground That the CIT(A) NFAC has erred in deciding the appeal without considering the request for adjournment filed appeal without considering the request for adjournment filed appeal without considering the request for adjournment filed by the appellant on 06.11.2024. by the appellant on 06.11.2024.
4. Ground National faceless Ground National faceless Assessment Centre (NFAC), has Assessment Centre (NFAC), has erred in rejecting books of accounts under section 145(3) of erred in rejecting books of accounts under section 145(3) of erred in rejecting books of accounts under section 145(3) of the Income Tax without even looking at the documents on the Income Tax without even looking at the documents on the Income Tax without even looking at the documents on record and without appreciating that no specific defect in the record and without appreciating that no specific defect in the record and without appreciating that no specific defect in the books of account was pointed out by the AO whi books of account was pointed out by the AO whi books of account was pointed out by the AO which is not even part of the assessment order even part of the assessment order 5. Ground1. That the AO and the Commissioner of Income Tax Ground1. That the AO and the Commissioner of Income Tax Ground1. That the AO and the Commissioner of Income Tax (Appeals) ("CIT(A)") have grossly erred on facts and in law in (Appeals) ("CIT(A)") have grossly erred on facts and in law in (Appeals) ("CIT(A)") have grossly erred on facts and in law in passing the orders without giving a sufficient and reasonable passing the orders without giving a sufficient and reasonable passing the orders without giving a sufficient and reasonable opportunity to the assessee to opportunity to the assessee to be heard. The orders have be heard. The orders have been passed in violation of principles of natural justice been passed in violation of principles of natural justice been passed in violation of principles of natural justice Ground2. That, on the facts and circumstances of the case, Ground2. That, on the facts and circumstances of the case, Ground2. That, on the facts and circumstances of the case, the CIT(A) has erred in law and on facts in upholding the the CIT(A) has erred in law and on facts in upholding the the CIT(A) has erred in law and on facts in upholding the assessment order u/s 143(3) r.s.w. 144B of the Act and assessment order u/s 143(3) r.s.w. 144B of the Act and assessment order u/s 143(3) r.s.w. 144B of the Act and the additions/disallowances made therein. additions/disallowances made therein.
Ground3. That on the facts and circumstances of the case Ground3. That on the facts and circumstances of the case Ground3. That on the facts and circumstances of the case and law The Learned commissioner of Income tax (Appeals) and law The Learned commissioner of Income tax (Appeals) and law The Learned commissioner of Income tax (Appeals) has erred up holding the Addition made by the Ld. Assessing has erred up holding the Addition made by the Ld. Assessing has erred up holding the Addition made by the Ld. Assessing office erred in making addition on accou office erred in making addition on account of alleged 10% of nt of alleged 10% of Total Gross Turnover amounting to Rs. 7,06,71,532 Total Gross Turnover amounting to Rs. 7,06,71,532 Total Gross Turnover amounting to Rs. 7,06,71,532 7. Ground4. That on the facts and circumstances of the case Ground4. That on the facts and circumstances of the case Ground4. That on the facts and circumstances of the case and law The Learned commissioner of Income tax (Appeals) and law The Learned commissioner of Income tax (Appeals) and law The Learned commissioner of Income tax (Appeals) has erred up holding the Addition made by the Ld. Assessing has erred up holding the Addition made by the Ld. Assessing has erred up holding the Addition made by the Ld. Assessing office erre office erred in making addition amounting to Rs. 70671532 d in making addition amounting to Rs. 70671532 which was 10% of Gross Turnover of Rs. 70,67,15,329/ which was 10% of Gross Turnover of Rs. 70,67,15,329/ which was 10% of Gross Turnover of Rs. 70,67,15,329/ 8. Grounds. All of the above grounds of appeal
are without Grounds. All of the above grounds of appeal are without Grounds. All of the above grounds of appeal are without prejudice and are mutually exclusive prejudice and are mutually exclusive to each other. other.
2. We have heard the rival submissions advanced We have heard the rival submissions advanced We have heard the rival submissions advanced by the learned counsel for the parties and have carefully perused the material counsel for the parties and have carefully perused the material counsel for the parties and have carefully perused the material placed on record.
2.1 With reference to Grounds No. 3 and 5 of the appeal, it is With reference to Grounds No. 3 and 5 of the appeal, it is With reference to Grounds No. 3 and 5 of the appeal, it is submitted by the learned counsel appearing on behalf of the submitted by the learned counsel appearing on behalf of the submitted by the learned counsel appearing on behalf of the assessee that the first notice for h assessee that the first notice for hearing was issued by the learned earing was issued by the learned CIT(A) on 14.03.2024. Thereafter, three further notices were issued CIT(A) on 14.03.2024. Thereafter, three further notices were issued CIT(A) on 14.03.2024. Thereafter, three further notices were issued within a short span between 07.09.2024 and 15.10.2024, covering within a short span between 07.09.2024 and 15.10.2024, covering within a short span between 07.09.2024 and 15.10.2024, covering a period of approximately one month. It has further been brought to a period of approximately one month. It has further been brought to a period of approximately one month. It has further been brought to our notice that in resp our notice that in response to the last notice dated 15.10.2024, the onse to the last notice dated 15.10.2024, the assessee sought an adjournment by filing a request on 06.11.2024. assessee sought an adjournment by filing a request on 06.11.2024. assessee sought an adjournment by filing a request on 06.11.2024. However, the CIT(A) proceeded to pass the impugned order on the However, the CIT(A) proceeded to pass the impugned order on the However, the CIT(A) proceeded to pass the impugned order on the very same day, without granting the adjournment sought. very same day, without granting the adjournment sought. very same day, without granting the adjournment sought.
2.2 Before us, learned c Before us, learned counsel for the assessee has submitted that ounsel for the assessee has submitted that the assessee is prepared and willing to file all relevant documents in the assessee is prepared and willing to file all relevant documents in the assessee is prepared and willing to file all relevant documents in support of the grounds raised in appeal and seeks an opportunity support of the grounds raised in appeal and seeks an opportunity support of the grounds raised in appeal and seeks an opportunity to present the same before the CIT(A). to present the same before the CIT(A).
2.3 Having regard to the facts and cir Having regard to the facts and circumstances of the case, and cumstances of the case, and in the interest of substantial justice, we are of the considered in the interest of substantial justice, we are of the considered in the interest of substantial justice, we are of the considered opinion that the assessee ought to be afforded a further opportunity opinion that the assessee ought to be afforded a further opportunity opinion that the assessee ought to be afforded a further opportunity to prosecute its appeal effectively. The willingness expressed by the to prosecute its appeal effectively. The willingness expressed by the to prosecute its appeal effectively. The willingness expressed by the assessee to participate assessee to participate in the appellate proceedings and the short in the appellate proceedings and the short interval between the notices lend support to the plea for a fresh interval between the notices lend support to the plea for a fresh interval between the notices lend support to the plea for a fresh hearing.
2.4 Accordingly, the impugned order passed by the learned CIT(A) Accordingly, the impugned order passed by the learned CIT(A) Accordingly, the impugned order passed by the learned CIT(A) is set aside, and the matter is restored to his file for disposal afresh is set aside, and the matter is restored to his file for disposal afresh is set aside, and the matter is restored to his file for disposal afresh in accordance with law, after affording adequate opportunity of in accordance with law, after affording adequate opportunity of in accordance with law, after affording adequate opportunity of hearing to the assessee. Grounds No. 3 and 5 of the appeal are thus hearing to the assessee. Grounds No. 3 and 5 of the appeal are thus hearing to the assessee. Grounds No. 3 and 5 of the appeal are thus allowed for statistical purposes. allowed for statistical purposes.
2.5 In view of the aforesaid direction, the remaining grounds In view of the aforesaid direction, the remaining grounds In view of the aforesaid direction, the remaining grounds raised in the appeal, being raised in the appeal, being on merits, do not warrant adjudication on merits, do not warrant adjudication at this stage.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.