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Facts
For Assessment Year 2014-15, the assessee's assessment was completed with additions of Rs. 59,89,119/- by the AO. The CIT(A) subsequently dismissed the assessee's appeal ex-parte due to alleged non-compliance, without deciding the case on merits.
Held
The ITAT, noting the assessee's contention of non-receipt of notices and the CIT(A)'s failure to decide on merits, set aside the CIT(A)'s ex-parte order. The matter was restored to the CIT(A) for fresh adjudication on merits, ensuring a reasonable opportunity of being heard to the assessee.
Key Issues
1. Whether the CIT(A) was justified in dismissing the assessee's appeal ex-parte without ensuring service of notices. 2. Whether the CIT(A) erred by not adjudicating the additions on merits, violating principles of natural justice.
Sections Cited
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH, ‘B’: NEW DELHI
Before: SHRI SAKTIJIT DEY & SHRI BRAJESH KUMAR SINGH
ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal by the assessee is directed against the order of the National Faceless Appeal Centre, Delhi, dated 09.11.2023 pertaining to Assessment Year 2014-15.
The grounds of appeal raised by the assessee are as under:-
“That on the facts and circumstances of the case, and in law;
The CIT-A erred in dismissing the appeal of assessee ex parte on the ground of non prosecution of case; and thereby failed to appreciate that notices were not served on assessee.
2. The CIT-A erred in upholding the addition of Rs 59,89,119/- made by AO and further erred in not deciding the case on merits and hence order passed by CIT-A is against the principles of natural justice.”
Brief facts of the case: The assessee company is engaged in the business of dealing in dress materials, dupatta, gharara, kurtis unstitched, lehnga sarees, etc. The assessee filed its return of income on 29.11.2014 declaring total income of Rs.72,15,320/-. The assessment was completed on 29.12.2016 at a total income of Rs.1,32,04,439/- after making the following additions/disallowances:-
Sl. Particulars Addition (in Rs.) No. 1 Out of discounts to dealers 32,57,097/- 2 Brokerage 12,89,500/- 3 Payments subject to short deduction of 14,42,522/- TDS
Aggrieved with the assessment order, the assessee filed an appeal before the Ld. CIT(A). The Ld. CIT(A) dismissed the appeal of the assessee ex-parte as there was no compliance by the assessee, when the case was fixed for hearing on 22.01.2021, 13.09.2023 and 29.09.2023.
Aggrieved by the order of the ld. CIT(A), the assessee is in appeal before us.
The ld. AR submitted that the CIT(A) erred in dismissing the appeal of assessee ex parte on the ground of non -prosecution of case; and thereby failed to appreciate that notices were not served on assessee.
Further, it was submitted that the CIT(A) erred in upholding the addition of Rs.59,89,119/- made by AO and further erred in not deciding the case on merits and hence order passed by CIT(A) was against the principles of natural justice.
The ld. Sr. DR relied upon the orders of the authorities below.
We have heard the rival submissions and perused the material available on record. In view of the submission of the assessee that the notice of the hearing of the ld. CIT(A) was not received and further the fact the ld. CIT(A) did not adjudicate the issue on merit, we hereby set aside the order of the Ld. CIT(A) and the matter is restored to the file of ld. CIT(A) to adjudicate the issue on merits after providing reasonable opportunity of being heard to the assessee. Grounds are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 22nd August, 2024.