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Facts
The assessee filed its return of income, but a survey led to a revised assessment with penalties levied. The assessee appealed to the CIT(A) against a penalty order, but failed to comply with notices, leading to the dismissal of the appeal in limine.
Held
The Tribunal held that the assessee was denied a reasonable opportunity of hearing by the CIT(A). Therefore, the impugned order was set aside, and the matter was remitted to the CIT(A) to grant a fresh opportunity to the assessee.
Key Issues
Whether the assessee was denied a reasonable opportunity of hearing before the CIT(A), and if so, whether the appeal should be restored to the file of the CIT(A) for fresh consideration.
Sections Cited
133A, 250, 270A, 271AAC(1), 143(3), 144
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Before: SHRI SANDEEP SINGH KARHAIL & SMT. RENU JAUHRI
Assessee by : None Revenue by : Shri Hemanshu Joshi Date of Hearing 23.01.2025 Date of Pronouncement 24.01.2025 आदेश / O R D E R PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the Learned Commissioner of Income-tax (Appeals), Pune-11/National Faceless Appeal Centre, Delhi [hereinafter referred to as “CIT(A)”] dated 20.02.2024 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year [A.Y.] 2018-19.
The assessee has raised the following grounds of appeal:
1. On facts and circumstances of the case and in law, the learned officer has failed to see that there is no intentional hiding of facts. 2.On facts and circumstances of the case and in law, the learned AO and CIT (A) has erred in ignoring material already before them.
A.Y. 2018-19 Hemant V. More 3.On facts and circumstances of the case and in law, the learned AO and CIT (A) has erred in not offering opportunity.
4. On facts and circumstances of the case and in law, the learned AO and CIT(A) has erred in passing order in hurry without application of mind. The order is void ab-initio and liable to be quashed.”
Brief facts of the case are that the assessee filed its return declaring income of Rs. 29,52,250/- on 21.11.2018. A survey was conducted u/s 133A on 21.02.2019 at the assessee’s premises, during which additional income was declared. Accordingly, the case was selected for scrutiny and the assessment was completed exparte at an income of Rs. 1,49,92,948/-. Penalties u/s 270A and 271AAC(1) were also levied.
Aggrieved with the order of Ld. AO levying penalty of Rs. 11,58,205/- u/s 271AAC, the assessee filed an appeal before Ld. CIT(A). There was no compliance made by the assessee even during the appellate proceedings, and accordingly, Ld. CIT(A) after noting that the assessee had filed the appeal after a delay of 454 days and also that the tax on returned income had not been paid, issued a defect notice as well as a show cause notice to the assessee on both these issues. In the absence of any compliance by the assessee, the appeal was dismissed in limine vide a consolidated order dated 20.02.2024 along with quantum and penalty appeals for AY 2018-19 and 2019-20.
5. Aggrieved with the order of Ld. CIT(A), the assessee is in appeal before the Tribunal. On the date of hearing, none appeared on behalf of the assessee. It is noticed that with regard to the consolidated order of Ld. CIT(A), the assessee had preferred appeals against all the five orders. In respect of the Income Tax Appeal No. Assessment Year Appeal relating to the order u/s 2296/Mum/2024 2018-19 u/s 143(3) 2297/Mum/2024 2018-19 u/s 270A 2298/Mum/2024 2019-20 u/s 144 2299/Mum/2024 2019-20 u/s 270A Vide a consolidated order, all the above appeals have been allowed for statistical purposes and restored to the file of Ld. CIT(A) with the following observations: “4.......................................................... In our considered view, the assessee was totally non-co-operative before the Ld. CIT(A) and was unable to represent the matter in respect of any of the issues related to explanation of "sufficient cause" in the issue of the limitation and also the non-payment of admitted tax. The Ld.CIT(A) has not passed the order on merit. The Ld. AR placed due to medical emergency the assessee was unable to comply the notices of the Id. CIT(A) and prayed to remand the matter before the Ld. CIT(A). We find that the reasonable opportunity of the assessee was denied for redressal of the grievance. The Id. DR argued and had not made any objection about the prayer of the Id. AR. We are, therefore, of the opinion that interest of Justice would be sub-served if the impugned order is set aside and the matters are remitted to the file of the Id. CIT(A) for consideration thereof afresh. We direct Id. CIT(A) to accept the appeal by condoning the delay. But in case of non-payment of admitted tax, the assessee should get another opportunity of hearing before the Id. CIT(A) for explanation of correct fact. The Ld.CIT(A) is directed to act as per the Act and to pass a speaking order for disposing the appeal. We are not expressing our view on the merit of the case which will impair the appeal of the assessee. Needless to say, the assessee should get a reasonable opportunity of hearing in set aside appeal proceedings. On the other hand, the assessee should be diligent and co-operative in the appeal proceedings for quick disposal of the appeal.
Since the facts and circumstances in 2298 & 2299/Mum/2024 are identical to the above decision shall apply mutatis mutandis to ITA Nos 2296, 2298 & 2299/Mum/2024 also.”
Since quantum appeal for AY 2018-19 has already been restored to the file of Ld. CIT(A) by the above order of the co-ordinate bench, for similar reasons, we deem it appropriate to restore the present appeal also to the file of A.Y. 2018-19 Hemant V. More Ld. CIT(A) with directions to pass a fresh order after giving due opportunity to the assessee. The assessee is also directed to make necessary compliance before Ld. CIT(A). 7. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 24.01.2025.