WISDOM EDUCATION TRUST(R),MYSURU vs. INCOME TAX OFFICER, WARD-1(1), MYSURU

ITA 2501/BANG/2025Status: DisposedITAT Bangalore09 April 2026AY 2019-20207 pages

AI SummaryPartly Allowed

Facts

For the assessment years 2018-19 and 2019-20, the assessee did not file returns and later faced reassessment under section 147. The CIT(A) dismissed the appeals ex-parte due to non-compliance with hearing notices, despite the assessee claiming to have filed submissions. The assessee appealed this dismissal.

Held

The Tribunal held that the CIT(A) erred in dismissing the appeals ex-parte without considering the submissions and evidence filed by the assessee, violating principles of natural justice. The issues required factual verification and examination of evidence. Therefore, the appeals were set aside to the CIT(A) for fresh adjudication.

Income Tax Appellate Tribunal, ‘B’ BENCH, BANGALORE

Before: SHRI WASEEM AHMED & SHRI KESHAV DUBEY

For Appellant: Shri KR Vasudevan & Shri Ankur Pai, Advocates

For Respondent: Shri Subramanian, JCIT (DR)

Hearing: 01.04.2026

PER WASEEM AHMED, ACCOUNTANT MEMBER:

The present appeals have been instituted by the assessee against the order of the NFAC, Delhi passed u/s 250 of the Act for the assessment years 2018-19 and 2019-20.

First, we take up assessee’s appeal in for A.Y. 2018-19.

The facts in brief are that the assessee for the year under consideration did not file any return of income. The case was reopened by issuing notice under section 148 of the Act and assessment was completed under section 147 of the Act by making an addition of cash deposits under section 69A of the Act, disallowances of depreciation, disallowances of salary paid to employees, disallowances of vehicle maintenance, interest paid on bank loan etc.

The aggrieved assessee preferred appeal before the learned CIT(A).

The learned CIT(A) dismissed the assessee’s appeal in an ex- parte order on account of noncompliance by the assessee in response to hearing notices issued.

Being aggrieved by the order of the learned CIT(A), the assessee is in appeal before us.

The learned AR before us filed a paper book running from pages 1 to 94 and submitted that the assessee during the appellate proceeding before the learned CIT(A) filed detailed submissions as on 10th July 2025 along with supporting documents and annexures. However, the learned CIT(A) without considering the assessee’s submission dismissed the appeal vide order dated 16th July 2025 in an ex parte order. Accordingly, the ld. AR before us submitted to restore the issue to the file of the ld. CIT-A for fresh adjudication as per the provisions of law.

On the contrary, the learned DR vehemently supported the finding of the lower authorities. However, the ld. DR did not raise any serious objection if the matter is set aside to the file of the ld. CIT-A for fresh adjudication as per the provisions of law.

We have heard the rival contentions of both the parties and perused the materials placed on record. We note that the Ld. CIT(A) has dismissed the appeal of the assessee ex parte on account of alleged non-compliance. However, from the record, it is evident that the assessee had filed detailed submissions along with supporting documents before the Ld. CIT(A) during the appellate proceedings. In our considered view, once the assessee has placed submissions on record, it is the duty of the Ld. CIT(A) to examine the same and adjudicate the issues on merits. The dismissal of appeal without considering the materials filed by the assessee is not in accordance with law and is against the principles of natural justice. The Ld. CIT(A), being a quasi-judicial authority, is required to pass a speaking order after due consideration of the submissions and evidence placed before him.

8.1 We further observe that the additions made by the AO involve factual verification and examination of evidence such as cash deposits, expenses claimed, and other disallowances. These issues cannot be decided without proper appreciation of the materials placed by the assessee. Therefore, in the interest of justice and fair play, the assessee deserves one more opportunity to present his case before the ld. CIT-A. Accordingly, we set aside the impugned order of the Ld. CIT(A) and restore the entire issue to the file of the Ld. CIT(A) for fresh adjudication. The Ld. CIT(A) is directed to consider the submissions and . evidence already filed by the assessee and any further materials that may be filed and decide the appeal afresh in accordance with law. The assessee is also directed to cooperate and not seek unnecessary adjournments.

8.2 We further note that the assessee before us has filed application for admission of additional grounds of appeal. However, the learned AR before us submitted that the assessee is not willing to press the issue raised in additional grounds of appeal. Hence, we hereby dismiss the additional ground of appeal raised by the assessee as not pressed.

In the result, the appeal of the assessee is partly allowed for statistical purposes.

Coming to assessee’s appeal in for A.Y. 2019-20

10.

For the year under consideration, the assessee filed return under section 148 of the Act declaring loss of Rs. 11,48,488/- only. The assessment was completed under section 147 of the Act vide order dated 04-03-2024 by disallowing the loss and making addition of Rs. 2,52,49,540/- by treating the credit of unsecured loan as unexplained credit.

11.

The aggrieved assessee preferred appeal before the learned CIT(A).

12.

The learned CIT(A) during the proceeding issued various notices to the assessee to file necessary submission and evidence in support of grounds of appeal raised. However, the assessee failed to avail the opportunity. Hence, the learned CIT(A) dismissed the assessee’s appeal in an ex parte order.