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Facts
The assessee, Apni Sahkari Awas Samiti Ltd., challenged an addition of Rs. 33,94,100/- made by the AO for cash deposits, after the assessment for AY 2011-12 was reopened under section 148 and completed ex-parte under section 144 due to the assessee's non-response to notices. The CIT(A) upheld the addition, noting the assessee's continued failure to respond to notices during the first appellate proceedings.
Held
The Tribunal observed that it was not clear whether notices were properly served on the assessee by the lower authorities. It decided to grant the assessee one more opportunity, restoring the appeal to the CIT(A) for de novo adjudication with a direction to provide a reasonable opportunity of hearing. The assessee was also instructed to respond diligently to notices issued by the CIT(A).
Key Issues
Whether the lower authorities properly served notices to the assessee; and if the assessee should be granted a fresh opportunity to present its case before the CIT(A) for an addition made to its income.
Sections Cited
148, 142(1), 144, 147
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH “SMC”, DELHI
(A.Y.2011-12) Apni Sahkari Awas Samiti Ltd., Plot No. 111, Golf Vista Apartments, Sector-Alpha-2, Greater Noida, Uttar Pradesh 201306 ...... अपीलाथ�/Appellant PAN: AABAA-5581-G बनाम Vs. Income Tax Officer, Ward-1(1), Noida ..... �ितवादी/Respondent Uttar Pradesh अपीलाथ� �ारा/ Appellant by : None �ितवादी�ारा/Respondent by : Ms. Shivani Bansal, Sr. DR सुनवाई क� ितिथ/ Date of hearing : 12/09/2024 घोषणा क� ितिथ/ Date of pronouncement : 12/09/2024 आदेश/ORDER
PER VIKAS AWASTHY, JM:
This appeal by the assessee is directed against the order of Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi [in short 'the CIT(A)’] dated 13.06.2023, for Assessment Year 2011-12.
An examination of appeal file reveals that appeal was first listed for hearing on 27.09.2023. None appeared to represent the assessee. A fresh notice was issued to the assessee through RPAD as well as email for 01.11.2023. On the said date, again none appeared to represent the assessee. The appeal was adjourned to 04.12.2023, and fresh notice was issued to the assessee through RPAD. On 04.12.2023, on the written request of the assessee appeal was adjourned to 03.01.2023. On 03.01.2024 appeal was adjourned to 12.02.2024. On the said date one Shri Satyajeet Goel, Advocate appeared on behalf of the assessee and filed an application for admission of additional evidences. Thereafter, appeal was adjourned to 09.04.2024. Again none appeared to represent the assessee. On account of non appearance of anyone from assessee’s side, appeal was adjourned to 26.06.2024. On the said sate, for similar reason appeal was adjourned to today i.e. 12.09.2024. On eight dates out of nine fixed for hearings, the assessee remained unrepresented. Hence, this appeal is taken up for hearing with the assistance of ld. DR and on the basis on documents already on record.
Ms. Shivani Bansal, representing the department vehemently defended the impugned order and prayed for dismissing appeal of the assessee. The ld.DR submitted that the assessee has been non cooperative before the AO and CIT(A) as well.
Submissions made by ld. DR heard and order of the authorities below examined. The assessment for AY 2011-12 was reopened on the basis of AIR information. Notice u/s. 148 of the Act was issued to the assessee. The assessee did not respond to the said notice. Thereafter multiple notices u/s. 142(1) of the Act were issued to the assessee, but the assessee remained unresponsive. The Assessing Officer completed the assessment u/s. 144 of the Act. The AO made addition of Rs. 33,94,100/- on account of cash deposits in saving bank account during Financial Year 2010-11, that is the period relevant to assessment year under appeal. Aggrieved by the assessment order dated 14.12.2018 passed u/s. 144 r.w.s 147 of the Act, the assessee filed appeal before the CIT(A). In First Appellate proceedings, again the assessee failed to respond to the notices issued on 24.04.2023 and 30.05.2023. The CIT(A) in the absence of any contrary material upheld the addition made by AO and dismissed appeal of the assessee.
A perusal of assessment order and the order of CITA() show that notices were issued to the assessee but is it not emanating from the orders of authorities below that the said notices were served on the assessee. Taking into consideration entire facts of the case, I deem it appropriate to grant one more opportunity to the assessee. The appeal of assessee is restored to CITA() for denovo adjudication. The CIT(A) shall grant reasonable opportunity of hearing to the assessee before deciding appeal, in accordance with law.
The assessee is directed to respond to the notice served by the CIT(A), without fail.