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Facts
The assessee filed a return for AY 2013-14. The case was reopened u/s 147 and 148 for non-compliance, leading to an addition of Rs. 40,00,000/- u/s 68. The assessee's appeal before the CIT(A) was dismissed for non-prosecution.
Held
The Tribunal noted that both the AO and CIT(A) passed orders without discussing the merits of the case. The Tribunal held that interest of justice requires giving the assessee an opportunity to present their case before the CIT(A).
Key Issues
Whether the CIT(A) erred in dismissing the appeal for non-prosecution without considering the merits of the case, and whether the assessee should be granted an opportunity to present their case.
Sections Cited
147, 148, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “A” BENCH: KOLKATA
Before: Shri Pradip Kumar Choubey&Shri Rakesh Mishra]
ORDER / आदेश Per Pradip Kumar Choubey, JM:
This is the appeal preferred by the assessee against order of Commissioner of Income Tax (Appeal)- NFAC, Delhi (hereinafter referred to as the Ld. CIT(A)] dated 29.08.2024 for AY 2022-23.
Assessment Year: 2013-14 M/s R R Coal Agencies Pvt. Ltd.
Brief facts of the case of the assessee is that the assessee filed return of income for AY 2013-14 disclosing total income of Rs. 35,230/-. Subsequently on credible information the case was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act. The assessee did not file any return, show cause notice has also been issued but in spite of several opportunities provided to the assessee company, he failed to file any reason or explanation, as a result of which, the AO added disallowance u/s 68 of the Act of Rs. 40,00,000/- and added the same in the income of the assessee.
The said order has been challenged by the assessee before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed for want of non-prosecution.
Being aggrieved and dissatisfied the present appeal preferred by the assessee.
The Ld. Counsel of the assessee instead of arguing into merit of the case has submitted that the Ld. CIT(A) has passed an order in laminae not on merit. His prayer is that the assessee has to give an opportunity to place its case before the Ld. CIT(A).
Contrary to that the Ld. D.R supports the impugned order.
Upon hearing the ld. Counsel for the respective rival parties, we perused the order passed by the AO as well as Ld. CIT(A). It appears that the AO has also passed the order when there was non-compliance on behalf of the assessee and further the Ld. CIT(A) has also passed an order ex-parte without discussing the merit of the case. The Ld. CIT(A) has dismissed and confirmed the order of the AO on the ground that the assessee did not opt to reply the above notice for the reason best known to him. Before us the assessee wants to afford an opportunity to place his case before the Ld. CIT(A). Interest of justice demands to give an opportunity to the assessee to place his case before the Ld. CIT(A). Accordingly, the appeal of the assessee restored in the file of Ld. CIT(A) for fresh adjudication. The order passed by the CIT(A) is hereby set aside.
Order is pronounced in the open court on 13th February, 2025