LCT FEEDERS PVT.LTD., R.R.DIST,HYDERABAD vs. ITO, WARD-16(1), HYDERABAD, HYDERABAD

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ITA 227/HYD/2016Status: DisposedITAT Hyderabad18 October 2019AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had provided multiple opportunities for hearing, but the assessee failed to appear. However, in the interest of justice, the matter was remitted back to the CIT(A) for a fresh consideration, with a caution to the assessee.

What were the facts?

The assessee appealed an order of the CIT(A) confirming the AO's disallowance of income exemption and treating an amount as income under Section 68. The assessee argued the CIT(A) passed an ex-parte order without a hearing.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order without providing adequate opportunity to the assessee, and whether the disallowance and addition were justified.

Which sections of the Income-tax Act were involved?

Section 10(2)(A),Section 68

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD

Before: SHRI A. MOHAN ALANKAMONY & SHRI V. DURGA RAO

Hearing: 16/10/2019Pronounced: 18/10/2019

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH “A”, HYDERABAD BEFORE SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI V. DURGA RAO, JUDICIAL MEMBER ITA No.227/Hyd/2016 Assessment Year: 2011-12 LCT Feeders Private Limited, Vs. Income Tax Officer, D.No.6-158, SLNS Colony, Ward-16(1), Balapur X Roads, Hyderabad. Meerpet, RR Dist. 500 097. PAN: AABCL 1919 K (Appellant) (Respondent) Assessee by: Sri D. Satyanarayana, AR Revenue by: Sri Rajeev Benzwal, DR Date of hearing: 16/10/2019 Date of pronouncement: 18/10/2019 ORDER PER A. MOHAN ALANKAMONY, AM.:

This appeal is filed by the assessee against the order of the Ld. CIT(A)-4, Hyderabad in appeal No. 0064/14-15/ITO, Wd- 16(1)/CIT(A)/Hyd/15-16, dated 23/12/2016 passed U/s. 143(3) r.w.s 250(6) of the Act for the A.Y. 2011-12.

The assessee has raised the following grounds in its appeal:

“1. The order of the Ld. CIT(A) is erroneous both on facts and in law.

2.

The Ld. CIT(A) erred in confirming the action of the A.O. in disallowing the claim made for exemption of income of Rs. 71,56,173/- U/s. 10(2)(A) of the Act. 3. The Ld. CIT(A) erred in confirming the action of the A.O. in treating an amount of Rs. 1,14,97,812/- as the income of the appellant by applying the provisions of section 68 of the Act. 4. Any other ground or grounds that may be urged at the time of hearing.”

3.

At the outset, the Ld. AR submitted before us that the Ld. CIT (A) has passed an ex-parte order without providing an opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to the file of the Ld CIT (A) in order to provide one more opportunity to the assessee to pursue the appeal. The Ld.DR on the other hand vehemently argued stating that several opportunities were provided to the assessee however, he failed to appear before the Ld.CIT(A). Therefor the Ld.CIT(A) was left with no other option but to pass an ex-parte Order.

4.

We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, We find merit in the submissions of the Ld. DR. The Ld. CIT (A) had posted the case on several occasions viz., 11/08/2015, 24/08/2015, 09/09/2015, 28/10/2015, 16/11/2015 and finally on 23/12/2015. However, none appeared on behalf of the assessee on the above-mentioned dates of hearing. Therefore, the Ld. CIT (A) was right in his realm to pass ex-

parte Order based on merits based on the materials on record. Accordingly the Ld.CIT(A) had confirmed the Order of Ld.AO by agreeing with his view since no explanations was furnished before him to hold otherwise. In this situation We do not find much strength in the arguments advanced by the ld. AR. However, considering the prayer of the Ld. AR, and in the interest of justice, We hereby remit the matter back to the file of Ld. CIT (A) in order to consider the appeal afresh by providing one more opportunity to the assessee of being heard. At the same breath, We also hereby caution the assessee to promptly co- operate before the Ld. CIT (A) in the proceedings failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with merits and law based on the materials on the record. It is ordered accordingly.

5.

In the result, appeal of the assessee is allowed for statistical purposes as indicated hereinabove.

Pronounced in the open Court on 18th October, 2019.

Sd/- Sd/- (V. DURGA RAO) (A. MOHAN ALANKAMONY) JUDICIAL MEMBER ACCOUNTANT MEMBER Hyderabad, Dated: 18th October, 2019 OKK Copy to:- 1) LCT Feeders Private Limited, D.No.6-158, SLNS Colony, Balapur X Roads, Meerpet, Ranga Reddy Dist – 500 097.

2) Income Tax Officer, Ward-16(1), Hyderabad. 3) The CIT(A)-4, Hyderabad 4) The Pr. CIT-4, Hyderabad 5) The DR, ITAT, Hyderabad 6) Guard File

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