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Facts
The assessee's appeal was dismissed by the Addl. CIT(A) ex-parte, as the assessee failed to appear or provide submissions despite opportunities. The assessee claimed the notice for hearing was not received and that the dismissal was against natural justice. The assessee had also faced disallowances related to late deposit of ESI and PF contributions.
Held
The Tribunal noted that the assessee was indeed ex-parte before the lower authorities and thus could not present its defense. While acknowledging the assessee's lethargy, the Tribunal decided to restore the matter to the AO for a decision on merits, providing one last opportunity to be heard, to ensure the principles of natural justice are upheld.
Key Issues
Whether the ex-parte dismissal by the lower appellate authority was justified, and if the matter should be remanded for a decision on merits.
Sections Cited
36(1), 143(1), 43B
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Income Tax Appellate Tribunal, JAIPUR BENCHES,”SMC” JAIPUR
Before: DR. S. SEETHALAKSHMI, JM & SHRI RATHOD KAMLESH JAYANTBHAI, AM vk;dj vihy la-@ITA No. 1286/JP/2024
vkns'k@ORDER PER: DR. S. SEETHALAKSHMI, J.M. This appeal filed by the assessee is directed against the order of the ld. Addl. CIT(A)-11, Delhi dated 25-08-2022 for the assessment year 2012-13 raising following the grounds of appeal
1. That on law and facts the Ld. Add. CIT(A)-11, Delhi has grossly erred in rejecting appeal filed by appellant on dated 21.06.2023. The notice issued on dated 21.06.2024 was not received by assessee, and further in response to notice dated 06.08.2024, assessee move an application for adjournment for upto 31.08.2024 on dated 14.08.2024, but appeal order was passed on dated 27.08.2024. As such the action of Ld. Addl. CIT(A), Delhi was totally wrong and illegal, and against the principal of natural justice and deserves to be quashed.
RAJASTHAN EX-SERVICE MEN WELFARE CORP. SOCIETY LTD VS ITO, WARD 1(2), JAIPUR 2. That on law and facts the Ld. AO CPC has grossly erred in disallowing contribution of employees of provident fund and ESI of Rs. 2093886/- u/s. 36(1) (va) while during the assessment year 2022-23 only Rs. 751286/- was deposited late by two days to 14 days only. As such disallowances of Rs. 2093886/- u/s. 36(1)(va) is totally unjustified and as such order deserves to be quashed.
That share of employee PF of Rs. 751286/- were deposited late by 2 days to 14 days due to peak period of COVID-19, hence late deposit of above PF may please be condone due to above reason and addition of Rs. 751286/- u/s. 36(1) (va) may not be made in intimation issued u/s. 143(1).
That the Ld. AO CPC has grossly erred in processing return of income u/s. 143(1) of the Act without following the proceedings as laid down under said section. The action of the Ld. AO CPC is unjustified and against the facts of the case. Hence the intimation passed u/s. 143(1) deserves to be quashed.
That the order of the Ld. CPC is bad in law and deserves to be quashed.
2.1 It is noted from the order of the ld. Addl. CITA) that the appeal was transferred to him on 13-08-2023 under e-assessment scheme by NFAC and he dismissed the appeal of the assesssee treating it as an ex-parte order by observing as under:- ‘’3. The facts of the case as noted above are that the appellant has not pursued the appeal despite being granted several opportunities as elaborated supra. No details, documents or submission have been provided to come to any conclusion other than those arrived at by the assessing officer in the order. The notices have been duly served upon the assessee via e-mail. Regrettably no response whatsoever was forthcoming on the appointed date. Thus, nothing has been placed on record to substantiate as to why the addition made by the AO should not be sustained.
RAJASTHAN EX-SERVICE MEN WELFARE CORP. SOCIETY LTD VS ITO, WARD 1(2), JAIPUR 4. In view of the above, the undersigned is left with no option but to decide the case on the basis of material on record. Bare perusal of the facts shows that the appellant has not pursued the appeal despite being granted to several opportunities as elaborated supra. The grounds of appeal are therefore dismissed. Despite several notices being issued, the appellant has not made any compliance. The appeal is dismissed.’’ 2.2 At the outset of the hearing of the appeal, the ld. AR of the assessee submitted that the orders passed by the lower authorities are ex-parte orders and the assessee was deprived off to contest the case before the lower authorities. Thus the assessee may be given one more chance to contest the case before the AO so that the issue could be decided on merit. The ld. AR of the further submitted that he sent the letter to the Addl. CIT (A)-11, Delhi communicating therein his submission of the assessee. ‘’In connection with our appeal, we submit as under:-
1. 1. That assessee filed return of income on dated 11-10-2022 and declared income of Rs. 584164. In intimation issued u/s 143(1) dated 7- 06-2023 addition of Rs.2093886/- were made by CPC due to late deposit of ESI and PF by the assessee.