M/S. BHARAT HEAVY ELECTRICAL EMPLOYEES COOPERATIVE LTD.,BHOPAL vs. ITO-5(2), BHOPAL
Facts
The assessee filed an appeal against the order of the CIT(A) which dismissed their first appeal. The CIT(A) had dismissed the assessee's appeal against the assessment order passed by the AO, which computed the total assessed income at Rs. 2,02,60,939/-.
Held
The Tribunal held that the impugned order had not examined the merits of the case as required by law and that no opportunity of hearing was afforded to the assessee. Therefore, the Tribunal set aside the impugned order and remanded the case back to the CIT(A) for a fresh order after giving a reasonable opportunity to the assessee.
Key Issues
Whether the CIT(A) passed an ex-parte order without providing the assessee with a proper opportunity of hearing and without examining the merits of the case.
Sections Cited
253, 143(3), 246A, 250(6), 80P(2)(C)(i), 40A(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, INDORE BENCH, INDORE
Per Paresh M Joshi, J.M.:
This is an appeal filed by the assessee Under Section 253 of
the Income Tax Act, 1961 (hereinafter referred to as the “Act” for
sake of brevity) before this Tribunal as and by way of Second
appeal under the Act. The assessee is aggrieved by the order
bearing Number ITBA/NFAC/S/250/2024-25/1066023601(1)
dated 25.06.2024 passed by Ld. CIT(A) u/s 250 of the Act which
is hereinafter referred to as the “Impugned order”. The relevant
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Bharat Heavy Electrical Employees Cooperative Ltd ITA No. 643/Ind/2024 - A.Y.2013-14
Assessment Year is 2013-14 and the corresponding previous year
period is from 01.04.2012 to 31.03.2013.
FACTUAL MATRIX
2.1 That as and by way of an assessment order made u/s 143(3)
of the Act the assessee’s total assessed income was computed at
Rs.2,02,60,939/-. Additions were made to the return of income.
That the assessment order is dated 18.01.2016 u/s 143(3) of the
Act which is hereinafter referred to as the “Impugned
Assessment Order”.
2.2 That the assessee being aggrieved by the aforesaid
“Impugned Assessment order” prefers first appeal u/s 246A of
the Act before Ld. CIT(A) who by the “Impugned order” has
dismissed the appeal of the assessee.
2.3 That the assessee being aggrieved by the “Impugged order”
has preferred the instant second appeal before this Tribunal and
has raised following grounds of appeal in Form No.36 against the
“Impugned order” which are as under:-
That on the facts and circumstances of the case and in law, the order passed by the Hon'ble CIT(A) in passed in an ex-parte manner and without following to the principles of natural justice hence it is humbly requested that the said case may kindly be set aside to Hon'ble CIT-(A) for proper representation.
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Bharat Heavy Electrical Employees Cooperative Ltd ITA No. 643/Ind/2024 - A.Y.2013-14
That on the facts and in the circumstances of the case and in law, the Hon'ble CIT-(A) erred in confirming the erroneous disallowance made by the Ld. AO by denying deduction of Rs. 1,00,000/-claimed u/s 80P(2)(C)(i) of the Income Tax Act. 1961 without properly appreciating the facts of the case and the submissions on record.
That on the facts and in the circumstances of the case and in law, the Hon'ble CIT-(A) erred in confirming the addition made by the Ld. AO of Rs. 29,041/- by disallowing the revenue expenses on account of repairs of Rolling Shutter and erroneously treating the same as a capital expenditure.
That on the facts and in the circumstances of the case and in law, the Hon'ble CIT-(A) erred in confirming the addition made by Ld. AO of Rs. 13,81,314/- on account of disallowances u/s 40A(3) of the Income Tax Act without properly appreciating the facts of the case and the submissions on record.
That on the facts and in the circumstances of the case and in law, the Hon'ble CIT-(A) erred in confirming the addition made by Ld. AO of Rs. 1,77,90,722/-, on account of variation in receipts as per the books of accounts and as per Form 26AS, without properly appreciating the facts of the case and the submissions made before him.
The appellant seeks to leave, add, alter, amend, abandon or substitute any of the above grounds during the hearing of the appeal.”
Recording of Hearing
3.1 The hearing in the matter took place before this Tribunal on
21.04.2025 when Ld. AR for and on behalf of the assessee
appeared before us interalia stated that the “Impugned Order”
is illegal, bad in law, and not proper. It is in violation of the
principles of natural justice. The “Impugned Order” deserves to
be set aside. It was contended by the Ld. AR that no hard copy of
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Bharat Heavy Electrical Employees Cooperative Ltd ITA No. 643/Ind/2024 - A.Y.2013-14
notice regarding personal hearing was ever received by him.
Further the assessee does not regularly see the portal. Hence no
communication with regard to hearing was ever received and
hence no opportunity of hearing could be availed off by the
assessee due to bonafide reasons.
3.2 Per contra Ld. DR for and on behalf of the Revenue
contended that Revenue has no objection if the “Impugned
order” is set aside and matter is remanded back to the file of
CIT(A) for denovo adjudication and adjudgement.
Observations,findings & conclusions.
4.1 We now have to decide the legality, validity and the
proprietary of the “Impugned Order” basis records of the case
and rival contentions canvassed before us.
4.2 We have carefully perused the records of the case.
4.3 We basis records of the case and after hearing and upon
examining the contentions, are of the considered opinion that
“Impugned order” has just not examined merits of the case as
contemplated by law u/s 250(6) of the Act and further no
opportunity of hearing was afforded to the assessee. Under these
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Bharat Heavy Electrical Employees Cooperative Ltd ITA No. 643/Ind/2024 - A.Y.2013-14
circumstances we set aside the “Impugned order” and remand
the case back to the file of CIT(A) to pass a fresh order on Denovo
basis after giving reasonable opportunity to the assessee to
present case.
Order
5.1 The impugned order is set aside as and by way of remand
back to the file of CIT(A) on denovo basis.
5.2 Appeal of the assessee is allowed for statistical purpose.
Order pronounced in open court on 29.04.2025.
Sd/- Sd/-
(SMT. ANNAPURNA GUPTA) (PARESH M JOSHI) ACCOUNTANT MEMBER JUDICIAL MEMBER
Indore िदनांक/ Dated : 29/04/2025 Dev/Sr. PS
Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order COPY Senior Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore
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