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Facts
The assessee filed its return of income, which was initially accepted. However, the AO reopened the assessment and made an addition for deemed interest income. The CIT(A) dismissed the assessee's appeal ex-parte due to non-submission of evidence.
Held
The Tribunal noted that the assessee was not given a proper opportunity to be heard and was willing to furnish evidence. Therefore, the Tribunal allowed the appeal for statistical purposes, remitting the matter back to the CIT(A) for a fresh hearing.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte without affording adequate opportunity to the assessee to present its case and evidence.
Sections Cited
147, 144B, 143(3)
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Income Tax Appellate Tribunal, ‘B’ BENCH: CHENNAI
Before: SHRI ABY T. VARKEY & SHRI JAGADISH
आदेश / O R D E R
PER JAGADISH, A.M : Aforesaid appeal filed by the assessee for Assessment Year (AY) 2015-16 arises out of the order of Learned Commissioner of Income Tax, (NFAC), Delhi [hereinafter “CIT(A)”] dated 21.01.2025 in the matter of assessment framed by the Assessing Officer [AO] u/s.
147 r.w.s 144B of the Income-tax Act,1961 (hereinafter “the Act”) on 26.03.2022.
The assessee has filed its return of income declaring a total income of Rs. 1,92,61,540/-. The A.O, in the assessment order passed u/s. 143(3) of the Act on 28.12.2017, accepted the return of income.
Subsequently, the A.O reopened the assessment u/s. 147 of the Act and made an addition of Rs. 3,05,67,611/- towards deemed interest income. Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A). However, the Ld. CIT(A) dismissed the appeal ex-parte on the ground that the assessee failed to furnish any detailed submission or documentary evidence in support of the grounds of appeal, despite being given several opportunities.
The Ld. Authorized Representative (A.R) of the assessee submitted that the Ld. CIT(A) dismissed the appeal ex-parte without affording a proper opportunity of being heard. It was therefore prayed that one more opportunity be granted to the assessee to substantiate its case.
On the other hand, the Ld. Departmental Representative (D.R) relied on the orders of the lower authorities.
We have heard the rival submissions and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has upheld the addition made by the A.O and dismissed the appeal ex-parte, as the assessee failed to furnish documentary evidence in support of its claim. Before us, the Ld. AR submitted that the assessee is in a position to furnish the necessary documentary evidence and explanations to substantiate its claim, if granted another opportunity. In the interest of justice and in keeping with the principles of natural justice, we are of the view that the assessee should be provided with another opportunity of hearing to substantiate its case before the Ld. CIT(A). Accordingly, we remit the matter back to the file of the Ld. CIT(A) to decided the matter afresh in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and to furnish complete details in support of its claim for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced on 31st day of July, 2025 at Chennai.