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Facts
A search and seizure action was conducted, and subsequent proceedings under Section 153C of the Act were initiated against the assessee. The Assessing Officer (AO) framed an ex-parte order under Section 144 r.w.s. 153C as the assessee did not respond to notices. The CIT(A) also issued notices, but the assessee sought adjournments, leading the CIT(A) to dismiss the appeal.
Held
The Tribunal noted that the same CIT(A) had set aside the matter for other assessment years in the block period and, finding the facts to be identical, deemed it proper to restore the captioned appeals to the file of the AO. The AO was directed to follow the directions given by the CIT(A) in his earlier order.
Key Issues
Whether the ex-parte assessment order and the CIT(A)'s order upholding it should be set aside and remanded to the AO for fresh assessment, following similar orders for other years in the block period.
Sections Cited
132, 153C, 144, 139(1), 143(2), 251(1)(a)
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Income Tax Appellate Tribunal, “D” BENCH, MUMBAI
Before: SHRI SAKTIJIT DEY, HON’BLE & SHRI NARENDRA KUMAR BILLAIYA, HON’BLE
आदेश/O R D E R PER NARENDRA KUMAR BILLAIYA, AM:
are three separate appeals by the assessee preferred against the order of the ld. CIT(A)-49, Mumbai dated 30/12/2024, [hereinafter ‘the ld. CIT(A)’] pertaining to AYs 2017-18, 2018-19 & 2020-21 respectively.
Since common issues are involved in the captioned appeals, they were heard together and are disposed off by this common order for the sake of convenience and brevity.
Briefly stated the facts of the case are that a search and seizure action u/s 132 of the Act was conducted in case of KSS Group on 09/07/2019. Consequent upon the search, the case of the assessee was centralized in the charge of Central Circle - 7(4), Mumbai. The documents and material evidences/information seized during the course of search had bearing on the income of the assessee company. Therefore, after recording satisfaction note, proceedings u/s 153C of the Act were initiated and accordingly, notices were issued and served upon the assessee. Several notices were issued but were not responded by the assessee and the AO was compelled to frame ex-parte order u/s 144 r.w.s. 153C of the Act.
The ld. First Appellate Authority also issued several notices and, on each occasion, the assessee sought adjournment which prompted the ld. CIT(A) to conclude as follows:- “6.11 It is, thus, evident that the appellant has no evidence to substantiate the grounds taken and it has not even once argued with any supporting, relevant and 3 cogent arguments/averments. Thus, the appellant has failed to substantiate the grounds of appeal raised. Under the circumstances, I am not in a position to grant any relief to the appellant. Accordingly, I uphold the order of the AO, and the grounds of appeal raised by the appellant are DISMISSED.”
5. Before us, the ld. Counsel for the assessee drew our attention to the order of the ld. First Appellate Authority dated 12/03/2025 and pointed out that in the appeals of the remaining block period i.e., AYs 2014-15, 2015-16 & 2016-17, the ld. CIT(A) has remanded the matter to the file of the AO invoking the powers conferred upon him by the provisions of Section 251(1)(a) of the Act and prayed from restoration of the issues to the files of the AO. The ld. D/R did not raise any objections.
6. We have carefully perused the orders of the authorities below. The undisputed fact is that the order of the AO and that of the ld. CIT(A) are ex-parte. We find that the same ld. CIT(A) in AY 2014-15, 2015-16 & 2016-17 has set aside the matter. The relevant findings read as under:- “10.6 I have considered the submission of the appellant. The contention of the appellant that the notice u/s 143(2) is issued beyond time does not have any merits because the appellant has linked the notice issued in the assessment proceedings u/s 153C to the date of the original return filed u/s 139(1) of the Act and not with the date of return filed in response to notice u/s 153C. It is seen that the assessment order has been passed u/s 144 of the Act. Considering the submission made by the appellant, I feel the matter needs to be re-examined by the AO. Therefore, in exercise of the powers granted under proviso to section 251(1)(a), the assessment order is set aside to the file of the Assessing officer with directions to make a fresh assessment. Further, following the decision of the Hon'ble Supreme Court in case of Pr. CIT v. Abhisar Buildwell (P.) Ltd. [2023] 454 ITR 212, the AO shall not make any addition in the completed/unabated assessments, in absence of any incriminating material. In case of abated assessments AO is free to make additions based on facts on record. Needless to say, the appellant shall be granted fair opportunity to be heard before passing of the order.”
7. As the impugned assessment order is also framed u/s 144 of the Act and as the appeals for other assessment years of the block period have been set aside, facts being identical, we deem it proper to restore the captioned appeals to the files of the AO. The AO is directed to follow the directions given by the ld. CIT(A) in his order dated 12/03/2025 for the assessment years under consideration also.