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Facts
The assessee's assessment for A.Y. 2018-19 resulted in an addition of Rs. 4,99,481/- by the AO, confirming a total income of Rs. 11,74,411/-. The CIT(A) dismissed the assessee's appeal ex-parte due to non-compliance with hearing notices, sustaining the addition.
Held
The ITAT, applying principles of natural justice, set aside the CIT(A)'s ex-parte order. It remitted the matter back to the CIT(A) to provide the assessee a fresh opportunity to present evidence and for adjudication afresh on the disputed issues.
Key Issues
Whether the CIT(A) erred in confirming the addition ex-parte without providing adequate opportunity of hearing, violating principles of natural justice.
Sections Cited
143(3), 250, 143(2), 142(1), 80C, 143(3A), 143(3B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, PANAJI BENCH
Before: SHRI PAVAN KUMAR GADALE & SHRI G D PADMAHSHALI
सुनवाई क� तार�ख/Date of Hearing 03.03.2025 घोषणा क� तार�ख/Date of Pronouncement 04.03.2025 ORDER
PER PAVAN KUMAR GADALE, JM:
The appeal is filed by the assesse against the order of NFAC/CIT(A) passed u/sec 143(3) and u/sec 250 of the Act. The assessee has raised the grounds of appeal
challenging the ex-parte order of the CIT(A) sustaining the addition made by the Assessing Officer.
2. The brief facts of the case are that, the assessee is an individual and has filed the return of income for the Sunil Baburao Tate. Belagavi. A.Y.2018-19 on 30-06-2018 disclosing a total income of Rs.6,74,930/-.Subsequently the case was selected for complete scrutiny under the E-assessment scheme 2019..Further the notice U/sec 143(2) and u/sec 142(1) of the Act calling for the explanations and evidences to substantiate the claim made u/sec80C of the Act. Whereas the assessee has filed the partial details by letter dated 28.01.2021. The AO considering the information was not satisfied with the details and made the addition of Rs.4,99,481/- and assessed the total income of Rs.11,74,411/- and passed the order u/sec143(3) r.w.s143(3A)&132(3B) of the Act dated 09.02.2021.
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 no compliance by the assessee 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 assessee has filed an appeal before the Hon'ble Tribunal.
4. At the time of hearing, the Ld.AR submitted that the CIT(A) has erred in confirming the action of the Assessing officer overlooking the information of the assessment proceedings. Further the assesse has a good case on merits Sunil Baburao Tate. Belagavi. and shall substantiate with the material evidences and prayed for an opportunity to explain before the lower authorities. Per Contra, the Ld.DR supported the order of the CIT(A).
We heard the rival submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. The CIT(A) has issued the notices of hearing referred at Page 3 Para3 of the order but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the addition by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we 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 the disputed issue and the assesse Sunil Baburao Tate. Belagavi. should be provided adequate opportunity of hearing and shall cooperate in submitting the information. And we allow the grounds of appeal of the assessee for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes.
Order pronounced in the open court on 04.03.2025.