SURYA GLOBAL HOSPITALS PVT LTD,KAKINADA vs. INCOME TAX OFFICER, TDS WARD-1, RAJAHMUNDRY

(िनधा�रण वष�/Assessment Year: 218-19) Surya Global Hospitals (P) Vs. Income Tax Officer(TDS) Ltd, KAKINADA Ward 1 PAN:AAPCS7094C Rajahmundry (Appellant) (Respondent) िनधा��रती �ारा/Assessee by: Shri G.V.N. Hari, Advocate राज� व �ारा/Revenue by:: Dr. Aparna Villuri, Sr. AR सुनवाई की तारीख/Date of hearing: 17/07/2025 घोषणा की तारीख/Pronouncement: 25/07/2025 आदेश/ORDER

Per Vijay Pal Rao, Vice President

Page 1 of 5 “1. The order of the learned Counsel for the assessee is contrary to the facts and also the law applicable to the facts of the case, 2. The learned CIT (A) is not justified in deciding the appeal ex- parte without granting sufficient opportunity to the appellant.

3. At the time of hearing, the learned Counsel for the assessee has submitted that the learned CIT (A) has dismissed the appeal of the assessee while passing the impugned order ex-parte. He has pointed out that the learned CIT (A) has issued 3 notices as stated in the impugned order out of which the assessee has responded to the 2nd notice issued by the learned CIT (A), dated 3/12/2024 vide reply dated 9/12/2024 whereby the assessee sought the adjournment of the hearing. However, the learned CIT (A) has issued a 3rd notice on 16/12/2024 without giving a reasonable time to the assessee and therefore, the assessee could not respond to the 3rd notice and consequently, the appeal of the assessee was dismissed while passing the impugned order ex- parte. Thus, he has pleaded that the assessee may be given one more opportunity to explain its case and produce the relevant record to show that the assessee cannot be held as “assessee in default” u/s 201(1) of the Act. He has pointed out that it is a case of short deduction of TDS and payment made to the parties who have considered the same in their return of income and therefore,

Page 2 of 5 as per proviso to section 201(1) of the Act, the assessee cannot be deemed to be an “assessee in default”.

4. On the other hand, the learned DR has submitted that despite the 3 opportunities given by the learned CIT (A), the assessee failed to furnish any details or submissions to show how the assessee cannot be held to be an “assessee in default”. He has relied upon the impugned order of the learned CIT (A).

Date of Date of Date of Mail ID to which the notices issued hearing compliance of response have been delivered as per Income notice notice Tax Portal 18/11/2024 22/11/2024 No suryaglobalaccounts&yahoo.in response 03/12/2024 09/12/2024 09/12/24 suryaglobalaccounts&yahoo.in 16/12/2024 20/12/2024 No response suryaglobalaccounts&yahoo.in 5.1 Thus, the learned CIT (A) has given all 3 notices in a span of less than one month and then passed the impugned order. The assessee responded to the 2nd notice issued by the assessee and sought the adjournment, but immediately thereafter the learned CIT (A) has issued the 3rd notice and then passed the impugned order, therefore, we find that an effective opportunity of Page 3 of 5 hearing was not afforded to the assessee before passing the impugned order. Even otherwise, in the facts and circumstances of the case and in the interest of justice, we grant one more opportunity to the assessee to present its case as well as the relevant details and record before the learned CIT (A). Accordingly, the impugned order of the learned CIT (A) is set aside, and the matter is remanded to the record of the learned CIT (A) for fresh adjudication after giving an appropriate opportunity of hearing to the assessee. We order accordingly.