M/S SUPER SALES,RANCHI vs. ACIT, CIRCLE-3, RANCHI

आयकर अपीऱीय अधिकरण, “एस.एम.सी” न्यायपीठ,रााँची IN THE INCOME TAX APPELLATE TRIBUNAL “SMC” BENCH, RANCHI श्री चन्द्र मोहन गगग, न्द्याययक सदस्य के समऺ । BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER आयकर अऩीऱ सं./ITA No.12/RAN/2019 (नििाारण वषा / Assessment Year :2015-2016) M/s Super Sales, Vs. ACIT, Circle-3, Ranchi Sriji Tower, Circular Road, Lalpur, Ranchi, Jharkhand- 834001 स्थायी ऱेखा सं./ जीआइआर सं./ PAN/GIR No. : AACFS 8760 K (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. यनधागररती की ओर से /Assessee by :Shri Praveen Sinha, CA राजस्व की ओर से /Revenue by : Shri P.K.Mondal, DR सुनवाई की तारीख / Date of Hearing : 20/05/2019 घोषणा की तारीख/Date of Pronouncement 20/05/2019 आदेश / O R D E R This appeal has been filed by the assessee against the order of Commissioner of Income Tax (Appeals), Ranchi, dated 16.11.2018, passed in First Appeal No.CIT(A),Ranchi/10078/2017-18 for the assessment year 2015-2016. 2. The assessee has raised the following grounds of appeal :- 1. The ld. Commissioner of Income Tax, Appeals was not justified in dismissing the appeal on the ground that the AO had elaborately discussed the issues. 2. The ld. Commissioner of Income Tax, Appeals had erred in not giving the appellant a chance to appear before him and place the facts before dismissing the appeals. The Ld. Commissioner of Income Tax should have considered the genuine hardship of the appellant in not appearing before him on the due date of hearing. This is particularly when an adjournment petition on his behalf, had been filed earlier. 3. The salary paid to the wives of the partners be allowed as a deduction from the income of the firm as both the ladies are full time employees and well experienced in the business.

2 ITA No.12/Ran/2019 4. The salary paid to the father of one of the partners be allowed as a deduction from the income of the firm as the said person is well qualified and experience to manage the affairs of the firm on his own. 3. At the outset, ld. AR of the assessee submitted that the CIT(A) has passed the impugned order ex parte without providing an opportunity of hearing to the assessee, even the assessee has filed an adjournment petition before CIT(A) showing his genuine hardship in non-appearance before the appellate proceedings. Ld. AR further submitted that all the three related parties had been paid the salary by cheques. They had paid due advance taxes thereupon and their return of income included such receipts. Then in no case such payments can be treated as excessive and made for the purpose of evasion of tax. Therefore, ld. AR prayed for an opportunity to substantiate its claim before the CIT(A). 4. On the other hand, ld. DR relied on the orders of authorities below and submitted that the assessee has purposely not attended before the CIT(A) despite repeated opportunity provided to him, therefore, the CIT(A) has rightly dismissed the appeal of the assessee on the basis of documents available on record. 5. I have heard rival submissions of both the sides and perused the material available on the record of the Tribunal. I find that the impugned order has been passed by the CIT(A) ex-parte as the assessee could not appear before him and confirmed the disallowance made by the AO. Ld. AR submitted before the Bench that the assessee has filed an adjournment petition before CIT(A) showing his genuine hardship in non- appearance before the first appellate authority. I find that due to non-

3 ITA No.12/Ran/2019 appearance, the assessee could not furnish any documentary evidence for his claim before the CIT(A) resulting into dismissal of the appeal of the assessee for want of prosecution. Considering the facts and circumstances of the case and in the interest of justice and fair-play, if one more opportunity of hearing be provided to the assessee, there will be no loss to the Revenue. Accordingly, I restore the appeal of the assessee to the file of CIT(A) for de novo consideration of the claim of the assessee after providing adequate opportunity of being heard to the assessee. The assessee is also directed to cooperate with the CIT(A) in the appellate proceedings. I order accordingly. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 20/05/2019. Sd/- (CHANDRA MOHAN GARG) न्यानयक सदस्य / JUDICIAL MEMBER रााँची Ranchi; ददनांक Dated 20/05/2019 Prakash Kumar Mishra, Sr.P.S. आदेश की प्रनिलऱपप अग्रेपषि/Copy of the Order forwarded to : 1. अऩीऱाथी / The Appellant- . M/s Super Sales, Sriji Tower, Circular Road, Lalpur, Ranchi, Jharkhand-834001 प्रत्यथी / The Respondent- 2. ACIT, Circle-3, Ranchi 3. आयकर आयुक्त(अऩीऱ) / The CIT(A), 4. आयकर आयुक्त / CIT ववभागीय प्रयतयनधध, आयकर अऩीऱीय अधधकरण, रााँची / DR, ITAT, Ranchi 5. 6. गार्ग पाईऱ / Guard file. सत्यावऩत प्रयत //True Copy// आदेशािुसार/ BY ORDER, (Senior Private Secretary) आयकर अपीऱीय अधिकरण, रााँची / ITAT, Ranchi