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Facts
The assessee's income tax return for AY 2016-17 was scrutinised, leading to an addition of Rs. 2,36,07,905/- as undisclosed income by the AO. The Ld. CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance and failure to furnish documentary evidence.
Held
The Tribunal noted that the CIT(A)'s order was passed without discussing the merits. Considering the assessee's condonation petition for delayed filing and their submission of new evidence, the Tribunal set aside the CIT(A)'s order and restored the appeal for a fresh hearing, directing the CIT(A) to provide an opportunity to the assessee and consider the documents filed.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte due to non-compliance without addressing the merits, and if the assessee should be granted another opportunity to present their case and evidence.
Sections Cited
143(2), 142(1)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “B” BENCH: KOLKATA
Before: Shri Rajesh Kumar&Shri Pradip Kumar Choubey]
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 10.05.2024 for AY 2016-17.
Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd. 2. At the outset, the ld. Counsel for the assessee submitted that the appeal filed by the assessee after a delay of 30 days. For this, a condonation petition has been filed which is as follows:
Brief facts of the case of the assessee are that the assessee company filed its return of income for the AY 2016-17 declaring total income of Rs. 7,69,460/-. The case of the assessee was selected for scrutiny. A notice u/s 143(2) and 142(1) were issued and duly served on the assessee. In response to the notice the assessee company filed submission through e-filing portal but the assessee has failed to produce any satisfactory explanation, as a result of which, A.O. made an addition of Rs. 2,36,07,905/- as undisclosed income.
The said order has been challenged by the assessee before the Ld. CIT(A) wherein the appeal of the assessee has been dismissed as the assessee failed to furnish any documentary evidences and not participated in the proceedings.
Being aggrieved and dissatisfied with the order of Ld. CIT(A).
The Ld. Counsel for the assessee instead of arguing into merit of the case has submitted that the assessee has been given an opportunity to place its case before the Ld. CIT(A) as the appeal of the assessee has been dismissed not on merit rather due to non-compliance from the side of the assessee. The Ld. Counsel has submitted that due to some unavoidable reason the assessee could not be able to appear before the Ld. CIT(A) and now assessee undertakes that he will participate in the proceedings.
Contrary to that the Ld. D.R supported the order of Ld. CIT(A).
We have perused the order of Ld. CIT(A) and find that it has been passed an ex- parte order without discussion on the merit of the case of the assessee. The Ld. CIT(A) has confirmed the addition made by the AO only on this account that despite being provided ample opportunity there is no documentary evidences filed by the assessee. Before us, the Ld. CIT(A) has placed several papers which according to the assessee are essential piece of evidence to come to the right conclusion of the case. The index of the paper filed before us are as below:
Assessment Year: 2016-17 SNG Mercantile Pvt. Ltd. Annexure 1-ITR 6 FY 2015-16 Annexure 2- ITR V FY 2015-16 Annexure 3-Auditor’s Report & Financial Statements FY 2015-16 Annexure 4- 26AS FY 2015-16 Annexure 5- Agreement with Allahabad Zone Annexure 6- Auditor’s Report & Financial Statements FY 2011-12 Annexure 7- ITR 6 FY 2011-12 Annexure 8- ITR V FY 2011-12 Annexure 9 – 26AS FY 2011-12 Annexure 10- List of Sundry debtors Annexure 11- CA Certificate Annexure 12- Bank Statement FY 2015-16
Going over the order of Ld. CIT(A), we are inclined to give an opportunity to the assessee to place its case before the Ld. CIT(A). Accordingly, the order passed by the Ld. CIT(A) is hereby set aside and the appeal is restored to the file of Ld. CIT(A) and the Ld. CIT(A) is directed to pass an order afresh after hearing the assessee and going over the documents filed by the assessee before us.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order is pronounced in the open court on 30th January, 2025