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Facts
The assessee filed an appeal before the Income Tax Appellate Tribunal against the order of the Ld. CIT(A) for Assessment Year 2015-16. The Ld. CIT(A) had dismissed the assessee's appeal *in limine* because the assessee failed to pursue it despite being granted several opportunities, where the underlying issue concerned an addition of Rs. 43,61,745 for expenses.
Held
The Tribunal, noting the assessee's non-appearance but also the substantial addition sustained by the CIT(A), decided to grant the assessee another opportunity for a merit-based hearing. The matter is remitted back to the Ld. CIT(A) to decide the issue on merit after giving the assessee a proper opportunity to be heard and make submissions, thus the appeal is allowed for statistical purposes.
Key Issues
Whether the CIT(A) was correct in dismissing the appeal *in limine* due to non-prosecution, and if the assessee should be given a fresh opportunity to present its case on the merits of the sustained addition.
Sections Cited
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Income Tax Appellate Tribunal, DELHI BENCH ‘I’: NEW DELHI
Order
: 19.06.2024 ORDER
PER S.RIFAUR RAHMAN,AM:
The assessee has filed appeal against the order of the Learned Commissioner of Income Tax (Appeals)-8, New Delhi [“Ld. CIT(A)”, for short] dated 17.02.2020 for the Assessment Year 2015-16.
At the time of hearing, we observed from the order of ld. CIT (A) that the ld. CIT (A) decided the issue against the assessee by observing that assessee has not pursued the appeal despite being granted several opportunities and the details are given in the first appellate order and dismissed the appeal in limine.
None appeared on behalf of the assessee and we are deciding the appeal after hearing the ld. DR for the Revenue and material placed on record. We observed that the addition was sustained by the ld. CIT (A) relating to claim for expenses of Rs.43,61,745 incurred on change of scope of works and considering the addition sustained by the ld. CIT (A), in our considered view, assessee should be given one more opportunity of being heard on merit. Ld. DR for the Revenue did not have any objection of remitting the matter back to the ld. CIT (A). Therefore, we direct ld. CIT (A) to give an opportunity of being heard to the assessee and decide the issue on merit as per law. We also direct assessee to make proper submissions and appear before the ld.CIT (A) on the date of hearing and cooperate with the tax authorities. Accordingly, the appeal filed by the assessee is allowed for statistical purposes.
In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on this 19TH day of June, 2024 after the conclusion of the hearing.