VIPLESH MONGA,GURUHARSAHAI vs. DCIT CENTRAL CIRCLE-1, LUDHIANA
What did the Tribunal hold?
The Tribunal noted that the CIT(A)'s order was ex-parte and lacked findings on the merits of the case. Applying the principle of substantial justice, the matter was set aside and remanded to the CIT(A) for a fresh decision on merits after providing the assessee a reasonable opportunity to present their case.
What were the facts?
The assessee's assessment was completed under Section 143(3) for AY 2019-20, bringing to tax unaccounted business receipts totaling Rs 32,86,316/-, with assessed income determined at Rs 61,58,760/-. The CIT(A) subsequently sustained the AO's order due to the assessee's non-prosecution of the appeal.
What were the issues?
Whether the CIT(A) was justified in upholding the assessment order ex-parte due to non-prosecution, without adjudicating the appeal on its merits, thereby denying the assessee a fair opportunity.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Order PER VIKRAM SINGH YADAV, A.M. : This is an appeal filed by the Assessee against the order of the Ld. CIT(A)-5, Ludhiana dt. 30/08/2023 pertaining to Assessment Year 2019-2000.
Briefly the facts of the case are that the assessment was completed u/s 143(3) vide order dated 30/09/2021 wherein the AO brought to tax a sum of Rs 32,86,316/- as unaccounted business receipts and assessed income was determined at Rs 61,58,760/-. Against the order of the AO, the assessee carried the matter in appeal before the Ld. CIT(A) who has since sustained the order of the AO on account of non-prosecution.
Against the said order, the assessee is in appeal before us. None has appeared on behalf of the assessee nor was any adjournment application filed. Given that an ex-parte order has been passed by the Ld. CIT(A) and no finding has been recorded on merits of the case, it was decided that no useful purpose would be served in adjourning the matter any further and after hearing the Ld. Senior DR who has not raised any specific objection where the matter is set aside to the file of the Ld. CIT(A) and keeping in view the principle of substantial justice, we believe that the assessee deserve one more opportunity to come forward and furnish necessary explanation and supporting documentation. The matter is hereby set-aside to the file of the ld CIT(A) to decide the same afresh on merits as per law after providing reasonable opportunity to the assessee.
Needless to say, the assessee is hereby directed to attend to the appellate proceedings and to file requisite information/documentation as so directed and/or as advised, and in an event, where the conduct of the assessee remain non-cooperative/non-compliant, the appellate authority is at liberty to decide the matter as per law.
In the result, appeal of the Assessee is allowed for statistical purposes.
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