HARAKCHAND V.SHAH,PUNE vs. ASSISTANT COMMISSIONER OF INCOME-TAX, CIRCLE - 2, PUNE

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ITA 94/PUN/2019Status: DisposedITAT Pune28 July 2022AY 2014-154 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the CIT(A) had provided opportunities, the assessee failed to avail them. However, in the interest of justice, a final opportunity should be given to the assessee to represent their case on merits.

What were the facts?

The assessee's appeals before the ITAT concerned disallowances made by the CIT(A) for AY 2013-14 and 2014-15. The CIT(A) had passed an ex parte order without a substantive representation from the assessee.

What were the issues?

Whether the CIT(A) followed principles of natural justice in passing an ex parte order. Whether the assessee should be granted a final opportunity to present their case on merits.

Which sections of the Income-tax Act were involved?

Section 14A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘A’ BENCH, PUNE

For Appellant: Shri A.R. Bhide
For Respondent: Shri Arvind Desai

ORDER PER PARTHA SARATHI CHAUDHURY, JM These appeals preferred by the assessee emanates from the common order of the ld. CIT(A)-13, Pune, dated 19-11-2018 for A.Y. 2013-14 and 2014- 15 as per the grounds of appeal on record.

2.

That on perusal of grounds of appeal, ground No. 1 is that the assessee is aggrieved that the ld. CIT(A) has not followed the principles of natural justice while disallowing the issue of addition u/s 14A of the Act. Both the parties herein agreed that the facts and circumstances and the issues involved in both these appeals are identical and therefore, these cases were heard together and are disposed of by this consolidated order.

3.

We would first take up for A.Y. 2013-14 which is the lead case. We find that in the common order passed by the ld. CIT(A) for both these assessments years it is an ex parte order where the rights and liabilities of the parties have not been deliberated. The CIT(A) has given several opportunities to the assessee for hearing as appearing in para 1.4 of his order. The assessee has neither attended nor filed any written submissions in pursuance of his appeal. The ld. CIT(A) has relied on statement of facts, grounds of appeal and assessment order. Thus, there has not been substantive representation by the assessee before the ld. CIT(A). We are also of the considered view that principles of natural justice was followed by the ld. CIT(A) since he has provided ample opportunities to the assessee to represent his case on merits. However, the assessee for some reasons best known to him has not availed of these opportunities of hearing dates and has evaded from the proceedings before the ld. CIT(A). However, the income-tax Act is welfare legislation and in that regard, we are of the considered view that one final opportunity should be given to the assessee to represent his case on merits before the ld. CIT(A). Even the ld. A.R prayed before us if this opportunity is given, they would represent substantially on merits before the ld. CIT(A) with relevant documents/evidences. The ld. D.R did not raise any objection if the matter is restored to the file of the CIT(A) for re-adjudication as per law.

4. Having heard the parties and in the interest of justice, we set aside the order of the ld. CIT(A) and remand the matter back to his file to re-adjudicate as per law. We also direct the assessee to remain present before the ld. CIT(A) with relevant documents/evidences for proper representation of his case immediately on receipt of the hearing notice. The appeal of the assessee in is allowed for statistical purposes.

5.

Since the issues except the amount involved in shall apply mutatis mutandis to I.T.A. No. 94/PUN/2019. Therefore, ITA No. 94/PUN/2019 for A.Y. 2014-15 is also allowed for statistical purposes. & 94/PUN/2019 Harakchand V. Shah A.Y. 2013-14 & 2014-15

6.

In the combined result, both the appeals of the assessee are allowed for statistical purposes.

Order pronounced in the open court on 28th day of July 2022.

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