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Income Tax Appellate Tribunal, “B’’BENCH: BANGALORE
Before: SHRI B.R. BASKARAN, ACCOUTANT SMT. BEENA PILLAI
This appeal filed by the assessee is directed against order dated 7.6.2019 passed by Ld. CIT(A)-3, Bengaluru and it relates to the assessment year 2016-17. The ITANo.1744/Bang/2019 M/s. Garage Labs Technologies Pvt. Ltd., Bangalore assessee is aggrieved by the decision of Ld. CIT(A) in confirming the addition made u/s 56(2)(viib) of the Income-tax Act,1961 ['the Act' for short] relating to the share premium received by the assessee.
2. At the time of hearing, an adjournment request was moved by the representative of the assessee seeking time to file paper books. The said letter was presented by a messenger of the representative. However, on going through the order passed by Ld. CIT(A), we notice that the first appellate authority was constrained to pass ex-parte order, since the assessee did not appear before him despite giving opportunity to the assessee three times.
Hence we reject the adjournment request and proceed to dispose of the appeal.
ITANo.1744/Bang/2019 M/s. Garage Labs Technologies Pvt. Ltd., Bangalore
3. We also notice that the assessee has not filed any written submissions before Ld. CIT(A). Under these set of facts, the Ld. CIT(A) has passed the order ex-parte, without presence of the assessee. We also notice that the Ld. CIT(A) has passed a detailed order and confirmed the addition made by the Assessing Officer u/s 54(2)(viib) of the Act.
4. We heard Ld. D.R., who submitted that the order passed by Ld. CIT(A) should be upheld since the Ld. CIT(A) has passed a reasoned and detailed order.
However, we notice that the assessee did not appear before Ld CIT(A). Hence, in the interest of natural justice, we are of the view that the assessee should be given an opportunity to present its case. Since the assessee was delinquent before Ld. CIT(A), we are of the view that the assessee should bear a cost of Rs.5,000/- (Rs. Five
ITANo.1744/Bang/2019 M/s. Garage Labs Technologies Pvt. Ltd., Bangalore thousand only), which shall be paid to the credit of the Income Tax department as “other fees” within 30 days from the date of receipt of this order. Subject to the payment of above fee, we set aside the order passed by Ld. CIT(A) and restore all the issues to his file for adjudicating them afresh, after affording adequate opportunity of being heard to the assessee. We also direct the assessee to fully cooperate with Ld. CIT(A) for expeditious disposal of the appeal.
In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.
Order pronounced in the open court on 11.03.2020 Sd/- Sd/- (Beena Pillai) (B.R. Baskaran) Judicial Member Accountant Member Bangalore, Dated 11th March, 2020. /VG/
ITANo.1744/Bang/2019 M/s. Garage Labs Technologies Pvt. Ltd., Bangalore Copy to:
1. The Applicant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR, ITAT, Bangalore. 6. Guard file By order
Asst. Registrar, ITAT, Bangalore.
ITANo.1744/Bang/2019 M/s. Garage Labs Technologies Pvt. Ltd., Bangalore
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