R G DEVELOPERS,PUNE vs. COMMISSIONER INCOME TAX OFFICER, CIRCLE 7,PUNE, PUNE

The Ld. Counsel for the assessee at the outset submitted that the earlier Counsel appointed by the assessee neither made any submission before the Ld. CIT(A) nor communicated the notice of hearing to the assessee for which all these unfortunate events happened. He submitted that in the interest of justice the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. Addl./JCIT(A).

Ld. DR on the other hand strongly opposed the arguments advanced by the Ld. Counsel for the assessee. Referring to page 2 and 3 of the order of the Ld. Addl./JCIT(A), the Ld. DR submitted that the assessee was given as many as seven opportunities. However, the assessee has never made any submission before the Ld. CIT(A) for which the Ld. CIT(A) sustained the addition made by the Assessing Officer in absence of any material available before him. He accordingly submitted that the order passed by the Ld. Addl./JCIT(A) should be upheld and the grounds raised by the assessee be dismissed.

We have heard the rival arguments made by both the sides and perused the orders of the Assessing Officer and Ld. Addl./JCIT(A). It is an admitted fact that despite number of opportunities granted by the Ld. Addl./JCIT(A), the assessee did not make any submission for which the Ld. Addl./JCIT(A) dismissed the appeal for want of prosecution. It is the submission of the Ld. Counsel for the assessee that in the interest of justice, the assessee should be given an opportunity to substantiate its case by filing the requisite details before the Ld. Addl./JCIT(A). Considering the totality of the facts of the case and in the interest of justice, we deem it proper to restore the issue to the file of the Ld. Addl./JCIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case by filing requisite details and decide the issue as per fact and law after giving due opportunity of being heard to the assessee. The assessee is also hereby directed to make its submissions, if any, before the Ld. Addl./JCIT(A) on the appointed date without seeking any adjournment under any pretext, failing which the Ld. Addl./JCIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

Facts of the case, in brief, are that the Assessing Officer in the instant case completed the assessment u/s 143(3) of the Act on 31.03.2021 determining the total income of the assessee at Rs.1,54,08,120/- as against the returned income of Rs.1,13,14,520/- by making the addition of Rs.40,93,600/- under the head ‘Income from house property’.

Since the assessee did not make any submission before the Ld. CIT(A) / NFAC despite two opportunities granted, the Ld. CIT(A) / NFAC in the ex-parte order passed by him dismissed the appeal for want of prosecution.

Aggrieved with such order of the Ld. CIT(A) / NFAC, the assessee is in appeal before the Tribunal by raising the following grounds:

In the result, both the appeals filed by the assessee are allowed for statistical purposes.