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Income Tax Appellate Tribunal, “F” BENCH, MUMBAI
AadoSa / O R D E R महावीर स ुंह, न्याययक दस्य/ PER MAHAVIR SINGH, JM:
This appeal filed by the assessee is arising out of the order of the Commissioner of Income Tax (Appeals)]-20, in short CIT(A), in appeal No. CIT(A)-20/ITO-12(3)(1)/IT-10786/16-17 vide dated 01.09.2017. The Assessment was framed by the Income Tax Officer, Ward 12(3)(1), Mumbai (in short ITO/ AO) for the A.Y. 2014-15 vide order dated 30.12.2016, under section 143(3) of the Income-tax Act, 1961 (hereinafter ‘the Act’).
2 2. At the outset, it is noticed that this appeal is time barred by 154 days and assessee has filed condonation petition supported by affidavit. The learned Counsel for the assessee stated that the assessee received the order of CIT(A) on 01.09.2017 and last date for filing of this appeal before Tribunal was 31.10.2017, whereas, actually, the appeal was filed before the Tribunal on 03.04.2018. Thereby, there is a delay of 154 days. The learned Counsel for the assessee stated the reasons that there are two untimely deaths in the family i.e. the founding director Mr. Tarun Khakhar, his father and Mr. Jignesh Khakhar, a key managerial persons, his brother. The learned Counsel for the assessee drew our attention to the affidavit filed by the director and the relevant clause 4 to 6 states the reason and the same read as under: - “4. The company is a family run business managed by Khakhar family and is going through crisis due to untimely death of the Founding Directors Mr. Tarun Khakhar, my father and Mr. Jignesh Khakh, a Key Managerial Persons and my brother. Post these tragic events, the responsibility of managing the operations were taken over by Me and Mrs. Laxmi lawn Khakhar, my mother and Director of the company, who is unfortunately diagnosed with Cancer. She is currently undergoing Treatment for the same.
5. The company has been suffering huge financial losses in past few years and is unable to carry on the operations smoothly. In order to 3 repay Loans undertaken by the company for unsuccessful expansion and carrying out daily operations, the Factory of the company is being under distressed Sale.
Amid Personal, Administrative and Financial Losses, I could not give any time to the business operation and consequently could not take appropriate action with regards to the Appeal Order and filing of Appeal before the Hon' Bench of the Income Tax Appellate - Tribunal. The cumulative effect of the above has lead to heavy stress and mental anxiety.”
When, these reasons were confronted to the learned Sr. DR, he fairly conceded the position.
After hearing both the sides and going through the reasons that untimely death of the key managerial person and founding Director of the assessee company for which the appeal being filed delay. The reasons stated by the learned counsel for the assessee is sufficient and reasonable. Hence, we condone the delay and admit the appeal.
At the outset, the learned Counsel for the assessee first of all drew our attention to first ground of appeal
, that the appeal is decided by CIT(A) as ex-parte and in violation of principle of natural justice. For this assessee has raised the following ground No.1 before CIT(A): - 4 “1. The order passed by the Learned Commissioner of Income Tax (Appeal 20) is bad in law as No Opportunity of hearing has been provided to your Appellant and is also against the Facts and Circumstances of the Case.”
6. First of all, the learned Counsel for the assessee took us through the order of CIT(A) and stated that the order of CIT(A) is ex- parte and even, he took us through the decision of CIT(A) on each of the grounds. We have gone through the reasons and noted that in all the grounds the CIT(A) has simply confirmed the action of the AO without speaking anything on merits. As the order of CIT(A) is ex-parte and passed in total violation of natural justice without providing opportunity of being heard to the assessee. Secondly, the order of CIT(A) is totally non-speaking. Hence, we set aside the order of CIT(A) and remand the matter back to the file of the CIT(A) for fresh adjudication. Needless to say that the CIT(A) will pass speaking order after allowing reasonable opportunity of being heard to the assessee. The appeal of the assessee is allowed for statistical purposes.