TIFFINS BARYTES, ASBESTOS AND PAINTS LTD., CHENNAI,CHENNAI vs. DCIT, CENTRAL CIRCLE-2, HYD, HYDERABAD

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ITA 1048/HYD/2015Status: DisposedITAT Hyderabad06 January 2022AY 2011-124 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT found that the assessee was not given a proper opportunity to present its case before the CIT(A). Therefore, the matter was restored to the CIT(A) for fresh adjudication on merits after providing the assessee with adequate opportunities.

What were the facts?

The assessee failed to appear before the CIT(A) and provide necessary submissions. Consequently, the CIT(A) decided the appeals based on available information. The assessee then appealed to the ITAT, raising a preliminary ground regarding lack of opportunity.

What were the issues?

Whether the CIT(A) provided a reasonable opportunity to the assessee to comply with queries before enhancing the assessment. Whether the appeals should be decided on merits after providing proper hearing opportunities.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 153A,Section 251(2)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCHES “B”: HYDERABAD

Before: SHRI SATBEER SINGH GODARA & SHRI LAXMI PRASAD SAHU

For Respondent: Shri Y.V.S.T. Sai
Hearing: 10/01/2022Pronounced: 11/01/2022

O R D E R PER BENCH: These appeals filed by the assessee are directed against CIT(A) - XI, Hyderabad’s separate orders for AYs 2006-07 to 2011-12 involving proceedings u/s 143(3) rws 153A of the Income Tax Act, 1961.

2.

At the time of hearing, none appeared on behalf of the assessee despite the fact that the cases were called twice.

:- 2 -: to 1048Hyd/2015 M/s Tiffins Barytes, Asbestos and Paints Ltd., Chennai.

Therefore, we proceed to dispose of these appeals ex-parte against assessee after hearing the ld. DR and considering the facts available on record.

3.

In the grounds of appeal, the preliminary ground raised by the assessee is that the CIT(A) failed to give a reasonable opportunity as required u/s 251(2) to the appellant to comply to queries raised by it and enhanced the assessment merely on the basis of information available on record.

3. We have considered the submissions of the ld. CIT-DR and perused the material available on record as well as gone through the orders of revenue authorities. Since the assessee failed to comply with the notices of hearing before the CIT(A) and also failed to file written submissions to explain its case, the CIT(A) decided the appeals on the basis of information available on record. We are, therefore, of the view that larger interest of justice will be served if the matter is restored to the file of first appellate authority for deciding various grounds of appeal of the assessee on merits afresh. Accordingly, the CIT(A) is directed to afford opportunity of being heard to the assessee and thereafter decide the appeals on merits. We direct the assessee to appear before CIT(A) with all the relevant evidences; at its own risk and responsibility to be followed by three effective opportunities of hearing.

:- 3 -: to 1048Hyd/2015 M/s Tiffins Barytes, Asbestos and Paints Ltd., Chennai.

4.

Ld. CIT-DR invited our attention to Tribunal’s decision in the case of C. Satyanarayana and M/s Sri Krishna Constructions (assessee’s group concerns and covered in the very search) in to 490/Hyd/2015 and others for AYs 2005-06 to 2007-08 and 2011-12 vide order dated 06/12/2021 prima-facie adjudicating various inter- connected issues. All assessee’s substantive grounds raised in the instant appeals are remitted to the CIT(A) in foregoing terms.

5.

In the result, the appeals of the assessee are treated as allowed for statistical purposes in above terms. A copy of this common order be placed in the respective case files.

Pronounced in the open court on 11th January, 2022

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