PARAG MANOHAR SATHE,MUMBAI vs. ITO 25(3)(2), MUMBAI

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ITA 1356/MUM/2022Status: DisposedITAT Mumbai24 August 2022AY 2017-182 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found the assessee's reason for non-compliance to be reasonable and, in the interest of natural justice, decided to provide another opportunity. The CIT(A) had not adjudicated the issues on merits.

What were the facts?

The assessee's appeal before the CIT(A) resulted in an ex-parte order because the assessee failed to file written submissions by the stipulated deadline. The assessee's representative attributed this omission to being busy with year-end compliance work.

What were the issues?

Whether an ex-parte order passed by the CIT(A) without granting a proper hearing to the assessee is sustainable, especially when the non-compliance was due to inadvertence.

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “C” Bench, Mumbai

For Appellant: Shri Milind V. Sahasrabudhe, CA
For Respondent: Shri Ujjawal Kumar
Hearing: 24.08.2022Pronounced: 24.08.2022

The assessee has filed this appeal challenging the order dated 31-03- 22 passed by Ld CIT(A), National Faceless Appeal Centre, Delhi and it relates to the assessment year 2017-18.

2.

At the outset, the Ld A.R submitted that the Ld CIT(A) has passed the ex-parte order without hearing the assessee on the reasoning that the assessee did not file written submissions before him by 30-03-2022. The Ld A.R submitted that he was busy with year end compliances work and hence he inadvertently omitted to file the necessary papers before Ld CIT(A). Accordingly, the Ld A.R submitted that the assessee may be provided with one more opportunity to present its case properly before Ld CIT(A).

3.

We heard Ld D.R and perused the record. We notice that the Ld CIT(A) has passed the order ex-parte, without hearing the assessee, since the assessee has failed to file written submissions before 30-03-2022, being the 2 Parag Manohar Sathe time given by him for compliance. It is the submission of the Ld A.R that the omission to furnish necessary papers has occurred at his end, as he was busy with year end compliance works. Thus the Ld A.R has taken responsibility for the failure. In our view, the reasoning given by Ld A.R for not appearing before Ld CIT(A) is a reasonable one. Accordingly, in the interest of natural justice, we are of the view that the assessee should be proved with one more opportunity to present its case properly before Ld CIT(A). We notice that the Ld CIT(A) has also not adjudicated the issues on merits.

4.

Accordingly, we set aside the order passed by Ld CIT(A) and restore all the issues to his file for adjudicating them on merits, after providing adequate opportunity of being heard to the assessee. We also direct the assessee to fully co-operate with the Ld CIT(A) for expeditious disposal of the appeal.

5.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order pronounced in the open court on 24.08.2022.

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