SHIV TOOLS ENGINEERING PRIVATE LIMITED,FARIDABAD vs. ACIT CIRCLE II, FARIDABAD

ORDER Per Dr. B. R. R. Kumar:- The present appeal has been filed by the assessee against the order of ld. CIT(A)/NFAC dated 15.06.2023. 2. The assessee has raised the following grounds of appeal:-

1. Because the action for initiation, continuation and conclusion of assessment proceedings u/s 143(3) is being challenged on facts and law.

2. Because the action is being challenged on facts and law for not providing reasonable opportunity of being heard. The assessment order being passed is in violation of the principle of natural justice and without giving adequate time and opportunity to the appellant to present the case.

3. Because action is being challenged on facts and law for making addition of Rs 40,00,000/- u/s 68 overlooking the submissions filed and documentary evidences furnished in support of having taken unsecured loans Rs 40,00,000/ - (Rs 20,00,000/ - borrowed from M/s

Yug Computers Pvt Ltd and Rs 20,00,000 from Bharat Heights Limited). 4. For any consequential relief and / or legal claim arising out of this appeal and for any addition, deletion, amendment and modification in the grounds of appeal before the disposal of the same in the interest of substantial justice to the assessee.

3. We find that the ld. CIT(A) has issued five notices from 30.12.2022 to 01.06.2023. In response to the notice issued on 30.12.2020, the assessee sought adjournment, which was granted by the ld. CIT(A). The assessee has not complied nor responded to the notices issued subsequently by the ld. CIT(A). Owing to the non-compliance of the assessee, the ld. CIT(A) dismissed the appeal of the assessee.

4. Before us, it was pleaded that given an opportunity the assessee would comply to the notices issued to the ld. CIT(A). The ld. DR argued that there was no reason for remanding the matter to the file of the ld. CIT(A), as already sufficient opportunities have been given, but assessee choose not to comply to the notices.

5. We have seen the facts on record and find that there is failure on the part of the assesee to comply to the notices. The assessee has failed to appear on five occasions before the ld. CIT(A) and has taken up the grounds before the Tribunal pertaining to legal principles of “audi alteram partem” and sustenance of order of the AO by the ld. CIT(A) on “ex-parte” basis. We strongly believe that every assessee has a right to appeal before the authorities against any addition or disallowance made to the returned income, at the same time, it is least expected that the assessee would comply to the notices issued by the authorities in an appropriate way. The assessee having miserably failed to attend before the ld. CIT(A) has taken the grounds of “audi alteram partem” before us. While the grievance of the assessee is not being preempted by us, at the same time, we feel that the conduct of the assessee is clogging the already burdened justice delivery system. Hence, we hereby direct the assessee to pay an amount of Rs.10,000/- to the “Prime Minister’s National Relief Fund” and approach the ld. CIT(A) for a fresh hearing denovo which shall be considered. The ld. CIT(A) is hereby directed to afford an opportunity of being heard to the assessee before conclusion of the proceedings.