SHRI. PINAL D SHAH,SURAT vs. ITO 25(3)(3), MUMBAI

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ITA 1796/MUM/2019Status: DisposedITAT Mumbai09 July 2020AY 2007-083 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) erred in dismissing the appeal ex parte without adjudicating on the merits. The matter was remitted back to the CIT(A) for a fresh adjudication after providing the assessee with another opportunity of hearing.

What were the facts?

The assessee appealed to the CIT(A) against an assessment order. The CIT(A) dismissed the appeal ex parte without considering the merits of the case or the material on record. The assessee's appeal to the ITAT challenged the CIT(A)'s order.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal ex parte without considering the merits, and whether reassessment proceedings were validly initiated.

Which sections of the Income-tax Act were involved?

Section 147,Section 144,Section 271(1)(c),Section 234A,Section 234B,Section 234C,Section 234D

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI ‘SMC- I’ BENCH, MUMBAI

ORDER Per Pramod Kumar, VP:

1.

By way of this appeal, the assessee appellant has challenged correctness of the order dated 18th February 2015, passed by the CIT(A) for the assessment year 2007-08.

2.

Grievances raised by the appellant are as follows:-

1. On the facts and circumstances of the case and in law the Ld CIT(A) erred in confirming the initiation of the reassessment proceeding under section 147. On the facts and circumstances of the case and in law the Ld CIT(A) failed to consider that reassessment proceeding cannot be initiated. a) No reassessment can be made just to make an enquiry or verification. b) Reassessment proceeding cannot be initiate merely on the information received from investigation wing.

Assessment year: 2007-08 Page 2 of 3 c) Reassessment proceeding cannot be initiated when the LD. CIT(A) have reason to suspect and not reason to believe.

2. On the facts and circumstances of case and law the Ld CIT(A) erred in confirming the assessment order under section 144 r w s 147 of income tax Act which is passed against the principal of natural justice.

3. On the facts and circumstances of the case the Ld CIT(A) erred in confirming the addition the Rs.90,360/-on account of deemed rent from residential property and added the same as to the total income of the assessee.

4. On the facts and circumstances of the case the Ld. CIT(A) erred in confirming the computed unexplained gift received by the assessee of Rs.82,250/- and thereby erred in confirming the addition made by the AO to the total income of the assessee.

5. On the facts and circumstances of the case the Ld. CIT (A) erred in confirming the genuine unsecured loan of Rs.4,50,000/- received from Shri Sanjay Gandhi and thereby erred in confirming the addition made by the AO to the total income of the assessee.

6. The Ld. CIT(A) erred in confirming the charging of interest Disallowed under section 234A, 234B 234C and 234D of the Income Tax Act 1961.

7. The Ld. CIT(A) erred in confirming the initiation of the Disallowed penalty proceeding under section 274 r.w.s. 271(1)(c) of the Income Tax Act 1961.

3.

When this appeal was taken up for the hearing, it was noticed that the learned CIT(A) has summarily dismissed the matter ex parte by observing as follows:-

The assessee is in appeal against all these additions. However despite fixing the case for hearing on a number of occasions no one has appeared nor any explanation/written submission filed to substantiate the grounds of appeal. Therefore in the appeal filed is hereby dismissed.

4.

Learned CIT(A) did not deal with the facts as set out in the statement of facts filed before him, or with the grounds of appeal before him. It is only elementary that irrespective of whether someone appears before him to plead for the appeal, an appeal is to be decided on merits in the light of material on record. Obviously, that exercise is not carried out in the impugned order.

Assessment year: 2007-08 Page 3 of 3

5.

Explaining the position as learned Departmental Representative was asked whether he has any objection to the matter being set aside to the file of the CIT(A) for adjudication de nova, after giving yet another opportunity of hearing to the assessee, and in the light of, inter alia, material on record. Learned Departmental Representative graciously leaves the matter to the bench.

6.

In view of the above discussions, I deem it fit and proper to remit the matter to the file of the CIT(A) for adjudication with direction as above. Ordered, accordingly.

7.

In the result, the appeal is allowed for statistical purposes, in the terms indicated above. Order pronounced under rule 34(4) of the Income Tax (Appellate Tribunal) Rules, 1962, by placing the details on the notice board. S

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