HIMATLAL PANACHAND SHAH (HUF),MUMBAI vs. ITO 24(3)(4), MUMBAI

This appeal in A.Y.2014-15 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-40, Mumbai in appeal No.ITBA/APL/S/250/2019-20/1021088705(1) dated 26/11/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 29/12/2016 by the ld. Income Tax Officer- 29(1)(4), Mumbai (hereinafter referred to as ld. AO).

Though the assessee has raised various grounds contesting addition made on account of long term gains as unexplained cash credit u/s.68 of the Act and corresponding commission income thereon, we find that the ld. CIT(A) had passed an exparte order without securing the presence of the assessee. In fact, in the entire order of ld. CIT(A), he has not even mentioned the fact whether at all any notice of hearing was issued to the assessee. But we find that the ld. AR before us had placed on record the notice of hearing issued by the ld. CIT(A) in page 43 of the paper book wherein it is mentioned that hearing was scheduled on 15/11/2019 at 11:45 am. The ld. AR also drew attention to the page No. 41 of the paper book wherein, on behalf of the assessee, the authorised representative had sought an adjournment vide letter dated 14/11/2019 on the ground that they are pre-occupied with the finalisation of uploading GST audited accounts that are due by 30/11/2019. Accordingly, an adjournment was sought to 15/12/2019. The existence of these papers on record is not disputed by the Revenue before us. Despite the same, the ld. CIT(A) proceeded to dispose of the appeal exparte vide his order dated 26/11/2019.

In view of the aforesaid facts, we deem it fit and appropriate in the interest of justice and fair play, to restore this appeal to the file of ld. CIT(A) for denovo adjudication in accordance with law. The ld. CIT(A) is directed to provide sufficient opportunities to the assessee. The assessee is also directed to co-operate with the ld. CIT(A) for expeditious disposal of the appeal and not to take adjournment except due to unavoidable or exceptional circumstances. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.