SANDEEP KUMAR GUPTA,HYDERABAD vs. DCIT., CIRCLE-2(1), HYDERABAD

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ITA 1402/HYD/2024Status: DisposedITAT Hyderabad20 March 2025AY 2018-19Bench: the Ld. CIT(A). However, the assessee did not make any compliances to the notices issued by Ld. CIT(A). Therefore, the Ld. CIT(A) dismissed the appeal of the assessee.4 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal acknowledged that the assessee failed to comply with notices before the CIT(A) but, considering the principles of natural justice and the assessee's willingness to produce evidence, decided to set aside the CIT(A)'s order. The matter was restored to the CIT(A) for a fresh order on merits after providing the assessee due opportunity of hearing.

What were the facts?

The assessee appealed against the CIT(A)'s order for A.Y. 2018-19, which had dismissed the assessee's appeal due to non-compliance with notices issued by CIT(A). The original assessment by the AO involved various disallowances including diesel expenditure, Hamali charges, and loans taken over.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal for non-compliance without affording sufficient opportunity to the assessee, and if the case should be remanded for a fresh hearing on merits.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, Hyderabad ‘A’ Bench, Hyderabad

Before: SHRI VIJAY PAL RAO & SHRI MADHUSUDAN SAWDIA

Hearing: 12/03/2025

(निर्धारण वर्ा/Assessment Year:2018-19) Shri Sandeep Kumar Gupta, Dy. Commissioner of Income Tax, Vs. Circle-2(1), Hyderabad. Hyderabad. PAN:BDEPG3748M (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri P. Vinod, Advocate रधजस् व द्वधरध/Revenue by: Shri Srinath Sadanala, SR-DR सुिवधई की तधरीख/Date of hearing: 12/03/2025 घोर्णध की तधरीख/Pronouncement: 20/03/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by Shri Sandeep Kumar Gupta (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 09.12.2024 for the A.Y. 2018-19.

2.

The assessee has raised the following grounds :

3. At the outset, the Ld. AR submitted that the assessee had filed appeal against the order u/s 143(3) r.w.s. 144B of the income tax Act,1961(“ the Act”) dated 20/09/2021, passed by the learned Assessing Officer (“Ld. AO”) before the Ld. CIT(A). However, the assessee did not make any compliances to the notices issued by Ld. CIT(A). Therefore, the Ld. CIT(A) dismissed the appeal of the assessee.

4. Feeling aggrieved with the order of Ld. CIT(A), the assessee is now in appeal before us, contending that the Ld. CIT(A) did not provide sufficient opportunity to the assessee to submit explanations/evidence in support of the disallowances made by the Ld. AO. It is further contended that the Ld. CIT(A) has passed the order without providing proper opportunity. The Ld. AR also submitted that the assessee does not stand to gain by allowing the appeal to be disposed of without any documentary evidence being produced and it is only due to the reasons beyond the control of the assessee, the assessee could not submit the explanations/evidences in support of the additions made by the Ld. AO. By consolidating all the grounds, he further submitted that given an opportunity, the assessee is now ready to produce all such details and conduct the proceedings diligently and get the matter disposed of on merits.

5. Per contra, Ld. DR placed heavy reliance on the orders of the authorities below, and submitted that sufficient opportunity has already been given by the authorities, but the assessee failed to avail the same. He opposed the grant of further opportunity to the assessee.

6.

We have heard the rival contentions and also gone through the record in the light of the submissions made on either side. It could be seen from the order of the Ld. CIT(A) that in spite of many the assessee failed to produce the opportunities given, explanations/evidence in support of the additons made by the Ld. AO, which resulted in passing the order without consideration thereof. It is a fact that the assessee does not stand to gain by not producing such documents. Be that as it may, now the assessee is ready to produce all such documentary evidence in support of his contentions and get the matter disposed of on merits. The least that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. With this view of the matter and considering the principle of natural justice, we are of the view that fresh opportunity should be given to the assessee. Accordingly, we set aside the impugned order and restore the issue to the file of the Ld. CIT(A) for passing a fresh order on merits after affording the opportunity of hearing to the assessee. Grounds of appeal are answered accordingly.

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