SATISH KUMAR SHARMA,PINJORE vs. COMMISSIONER OF INCOME TAX, CHANDIGARH

The assessee’s case was taken up for scrutiny assessment by the Assessing Officer (AO). The AO framed the assessment ex parte, as the assessee did not appear during the course of assessment proceedings. Aggrieved, the assessee carried the matter before the Ld. CIT(A). However, it is noticed from the impugned order that even before the first appellate authority, the assessee remained absent and failed to file requisite submissions/evidence in support of the grounds taken. Consequently, the Ld. CIT(A), after considering the material available on record, confirmed the additions made by the AO.

At the time of hearing before us, the Ld. Authorised Representative submitted that the assessee could not appear before the AO and even before the Ld. CIT(A) due to unavoidable circumstances, and thus, the matter was decided ex parte at both the stages. It was contended that the assessee has a good case on merits and is in a position to produce necessary documentary evidence to substantiate its claims, if one more opportunity is granted. The Ld. AR further submitted that principles of natural justice require that the assessee be heard and adequate opportunity be provided to present its case. Accordingly, it was prayed that the matter be restored to the file of the AO for fresh consideration.

The Ld. Departmental Representative, on the other hand, supported the orders of the authorities below and submitted that despite sufficient opportunities, the assessee failed to discharge the onus cast upon it. It was contended that the conduct of the assessee in remaining non-compliant both before the AO and the CIT(A) shows lack of diligence. Therefore, the order of the lower authorities may be upheld.

I have considered the rival submissions and perused the orders of the authorities below. It is evident that the assessment was framed ex parte, and the first appellate proceedings also concluded without participation of the assessee. The assessee has explained to me the reasons for their non- appearance and has expressed readiness to cooperate in the proceedings if given another opportunity fully. Considering the totality of facts and in the interest of substantial justice, I am of the considered view that one more opportunity should be afforded to the assessee to present its case on merits before the AO.