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Facts
Kkoutilya Chits Limited, a chit fund business, did not file its ITR for AY 2012-13. The Assessing Officer initiated reassessment proceedings u/s 148, making additions related to disallowed loss of discount and restricted director sitting fees. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with notices.
Held
The Tribunal condoned the delay in filing the appeal. Considering principles of natural justice, it set aside the ex-parte order of the CIT(A) and remitted the entire disputed issues back to the CIT(A) for fresh adjudication on merits, providing the assessee another opportunity of hearing.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte due to non-compliance and if the assessee should be granted another opportunity to present its case for adjudication on merits.
Sections Cited
143(3), 147, 250, 148, 143(2), 142(1)
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Income Tax Appellate Tribunal, “SMC” BENCH PANAJI
Before: SHRI PAVAN KUMAR GADALE
ORDER
PER PAVAN KUMAR GADALE ,JM:
The assesse has filed the appeal against the order of the ADDL/JCIT(A) Varanasi passed u/sec143(3)r.w.s147 and u/sec 250 of the Act. The assesee has raised the grounds of appeal
challenging the order of the CIT(A) sustaining the additions made by the Assessing officer.
2. At the time of hearing, it was brought to the knowledge of the bench, that there is a delay of 67 days in filing the appeal before the Hon’ble Tribunal and the assesse has filed an application and the affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are Kkotilya chits Limited.. reasonable and the Ld. DR has no specific objections. Accordingly, condone the delay and admit the appeal.
3. The brief facts of the case are that, the assessee company is engaged in the chit fund business and has not filed the return of income. The Assessing Officer (AO) based on the information found that the assesse has made time deposits and cash deposits in the bank account in F.Y.2011-12 and also income disclosed as per the Form.no26As.The assessing officer has reason to believe that the income has escaped the assessment and issued notice u/sec148 of the Act. In compliance, the assessee has filed the return of income on 7.12.2019 disclosing a total income of Rs.5,31,263/- and subsequently notice u/sec 143(2) and U/sec 142(1) of the Act are issued to furnish the details and information. The A.O dealt on the financial statements and find that the assesse had debited the loss of discount which is not allowable and disallowed the claim of Rs.1,07,492/- and other disputed issue the assessing officer has disallowed the claim of director sitting fees of Rs.1,05,347/- by restricting the claim to the above extent and assessed the total income of Rs.7,44,102/- and passed the order u/sec143(3) r.w.s147 of the Act dated 27.12.2019.
Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was Kkotilya chits Limited.. no compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has confirmed the action of the A.O and dismissed the appeal. Aggrieved by the order of the CIT(A), the assesse has filed an appeal before the Hon'ble Tribunal.
Heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The Ld. CIT(A) has issued the notices of hearing on 28.01.2021,7.01.2025 &10.03.2025 referred at Page 9 of the CIT(A) order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assesse is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice, shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided Kkotilya chits Limited.. adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal. And the grounds of appeal
of the assessee are allowed for statistical purposes.
6. In the result, the appeal filed by assesse is allowed for statistical purposes. Order pronounced in the open court on 16.09.2025.