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Facts
The assessee filed appeals against the CIT(A)'s orders for AYs 2020-21 and 2021-22, which dismissed the appeals as "not admitted" and upheld significant additions under Section 144 read with Section 144B and Section 68, as well as disallowance of expenses, allegedly without providing adequate opportunity to the assessee.
Held
The Income Tax Appellate Tribunal observed that the CIT(A) dismissed the appeals without admission and that the assessee had not complied with the Assessing Officer's requests. To ensure justice, the ITAT remanded the matter to the Assessing Officer for a de-novo assessment, directing the assessee to comply with notices, failing which penalty proceedings could be initiated.
Key Issues
1. Whether the CIT(A) was justified in dismissing the assessee's appeals as "not admitted" without providing an opportunity. 2. Whether the additions/disallowances were valid given the lack of opportunity and if the case should be remanded for de-novo assessment.
Sections Cited
144, 144B, 68
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “D” BENCH
Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL
PER BENCH: These appeal have been filed by the Assessee as against the appellate orders of even dated 29.07.2024 passed by the Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre, Delhi, relating to the Assessment Years 2020-21 & 2021- 22. Since the issue raised in all the 4 appeals are common, we A.Y. 2014-15 Page No 2 extract the grounds of appeal in for AY 2020-21 for the purpose of adjudication.
ITA No.1721/Ahd/2024 for AY 2020-21
The assessee has raised the following grounds of appeal: [1] The Ld. CIT(A) was grievously erred in dismissing the appeal as appeal is not admitted by upholding the addition of Rs. 15,36,85,3757- made by the Ld. A.O. of the Assessment Unit u/s. 144 r.w.s. 144B of the Act which is illegal and incorrect. The appellant submits that at the time of appellate proceedings, the appellant has made the submission along with relevant documents & information and also mentioned the reasons for the condonation of delay in filing the appeal which were not considered by the Hon. CIT(A) but dismissed the appeal only on the basis of the appeal is dismissed as not admitted which is incorrect against the principles of natural justice. Also the appellant submits that the Ld. A.O. has mistaken in comparing the P.Y. and made an adhoc addition is incorrect and the purchase and sale was duly recorded, which was not considered by the Ld. CIT(A) by giving an opportunity to the appellant. [2] From the various judgments the unverified purchases cannot be created as unexplained purchase as the sales were made from the purchase which were obviously made. [3] The Ld. CIT(A) was grievously erred before making the dismissal of appeal, no opportunity was given to the appellant which is illegal. The appellant relies on the Hon'ble Supreme Court in case of Union of India v. Jesus Sales Corporation which is also taken into note by the Hon'ble Gujarat High Court in case of Aggarwal Dyeing and Printing Works reported in 1996 (4) SCC 69.
1. [4] The Ld. CIT (A) has mistaken in respect of considering the disallowance of expenses of 1,87,905/- without giving an opportunity to the appellant, which is illegal and incorrect.
A.Y. 2014-15 Page No 3
[5] The Ld. CIT(A) was grievously erred in making an addition of Rs. 10,00,000/- u/s. 68 without giving any opportunity to the appellant as the details are available with him to prove the genuineness.
At the outset the Ld.AR for the assessee submitted that during the appellate proceedings the assessee has made submission along with the relevant documents & information and also mentioned the reasons for the condonation of delay in filing the appeals. The Ld.CIT(A) has dismissed the appeals of the assessee as not admitted. We also find that assessee has not complied even before the Assessing Officer, hence in the interest of justice the matter is remanded to Assessing Officer for conducting assessment de-novo. The assessee shall comply to the notices issued by the Assessing Officer failing which the Assessing Officer would be at liberty to initiate penalty proceeding as per the provisions of the Act.
In the result, the appeals of the assessee are allowed for statistical purposes.
Order pronounced in the open court on 20.02.2025 Sd/- Sd/- (SIDDHARTHA NAUTIYAL) (DR.BRR KUMAR) JUDICIAL MEMBER VICE PRESIDENT (True Copy) Ahmedabad : Dated 20.02.2025 manish A.Y. 2014-15 Page No 4