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Income Tax Appellate Tribunal, LUCKNOW BENCH “B”, LUCKNOW
Before: SHRI A.D JAIN & SHRI T.S. KAPOOR
PER: A.D. JAIN, VICE PRESIDENT:
This is assessee’s appeal for the Assessment Year 2014-15, taking the following grounds:- “1. That the Ld. C.I.T. (Appeals)-I, Kanpur has erred in law and on facts in passing ex parte order and sustaining the arbitrary disallowance of Rs.39,70,470/- made by the Ld. A.O. 2. That in passing ex-parte order the Ld. C.I.T. (Appeals)-I, Kanpur did not even call and examine the assessment records. 3. That the Id. C.I.T. (Appeals)- I, Kanpur has erred in law and on facts in sustaining the arbitrary addition of Rs.36,00,000/- in the income of the appellant on the account of disallowance of bed debts claimed by the appellant. 4. That the Ld. C.I.T. (Appeals) - 1 has erred in law and on facts in sustaining the addition of Rs.3,70,473/- in the
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income of the appellant on the account of disallowance of business expenses claimed by the appellant. 5. The disallowances sustained by the Ld. C.I.T. (Appeals)-I, Kanpur are arbitrary, unwarranted, unjustified, and unsustainable in law and on facts therefore, deserves to be deleted. 6. That the C.I.T. (Appeals)-I, Kanpur failed to appreciate the fact that the Ld. A.O. passed the impugned assessment order without assumption of proper jurisdiction therefore, the impugned assessment order is illegal, void-ab-initio and liable to be quashed and additions/disallowances made deserve to be deleted and consequential C.I.T. order is liable to be annulled. 7. The disallowances sustained by the Ld. C.I.T. (Appeals)-I, Kanpur arc without proper basis and also against the principle of natural justice and equity. 8. That an\ other relief or reliefs as your honour may deem fit in the facts and circumstances of the case, be granted.”
By virtue of the impugned order, the ld. CIT(A) has dismissed the assessee’s appeal for non prosecution, observing that notices dated 13.04.2017, 20.07.2017 and 03.11.2017 for compliance on 25.04.2017, 18.08.2017 and 14.11.2017 were issued to assessee at the address submitted by the assessee in its memo of appeal; that however, no written submission or paper book had been filed in support of any of the grounds of appeal taken. 3. We have heard the rival parties and have gone through the material placed on record. We noted that the ld. CIT(A) has passed the ex-parte order as according to him, nobody has appeared on the date when the appeal was fixed for hearing before him. The order of the CIT(A) talks of the notice/s having been ‘issued’ or ‘sent’ to the assessee and mentions nothing with regard to service thereof on the assessee. We also noticed from the order of the CIT(A) that he has summarily decided the appeal of the assessee without giving any cogent reason and his order is non
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speaking order. Under these circumstances, we feel that one more opportunity should be given to the assessee as ld. CIT(A) has not decided the appeal on merits. The provision of section 250 which deals with the procedure in appeal before the ld. CIT(A), allows a right to an assessee to be heard at the time of hearing of appeal. Even the natural justice demands that no appeal should be disposed of without being heard the party or without giving him the proper and sufficient opportunity. We, therefore, in the interest of justice and fair play to both the parties, set aside the order of CIT(A) and restore the appeal to the file of the CIT(A) with the direction that the CIT(A) shall refix the said appeal and decide the appeal afresh after giving proper and sufficient opportunity of being heard to the assessee. The assessee is also directed to be present on the date of hearing fixed by ld. CIT(A) and not to seek undue adjournment and co- operate with ld. CIT(A) in disposing of the appeal. 4. In the result, the appeal of the assessee stands allowed for statistical purposes. Order pronounced in the open court on 03/05/2019.
Sd/- Sd/- (T.S. Kapoor) (A.D. Jain) Accountant Member Vice President Aks – Dtd. 03/05/2019 Copy of order forwarded to: (1) The appellant (2) The respondent (3) Commissioner (4) CIT(A) (5) Departmental Representative (6) Guard File By order Assistant Registrar