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Facts
The assessee filed an appeal against an ex-parte order of the Ld.CIT(A) confirming an addition made by the AO. The assessee had not appeared before the Ld.CIT(A). The issue concerned the disallowance of 12.5% of the value of alleged bogus purchases.
Held
The Tribunal noted that the Ld.CIT(A) passed an ex-parte order without hearing the assessee, which is against the principles of natural justice. Therefore, the Tribunal set aside the ex-parte order and restored the issues to the Ld.CIT(A) for fresh adjudication.
Key Issues
Whether the ex-parte order passed by the Ld.CIT(A) without hearing the assessee violates principles of natural justice.
Sections Cited
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Income Tax Appellate Tribunal, MUMBAI “F” BENCH : MUMBAI
Before: SHRI B.R. BASKARAN & SHRI ANIKESH BANERJEE
Assessment Year : 2009-10 M/s. Vishal Babulal Shah, Income TaxOfficer-19(3)(5), Damodhar Lotawala Bldg, Matru Mandir Building, 456, Sindhi Lane, vs. Tardeo Road, Grant Road, Mumbai Mumbai PAN : AYTPS6260K (Appellant) (Respondent) For Assessee : NONE For Revenue : Shri Paresh Deshpande Date of Hearing : 17-12-2024 Date of Pronouncement : 18-12-2024 ORDER PER B.R. BASKARAN, A.M :
The assessee has filed this appeal challenging the order passed by the Ld. Commissioner of Income Tax (Appeals)-30, Mumbai [„Ld.CIT(A)‟] and it relates to the assessment year(AY.) 2009-10.
None appeared on behalf of the assessee. We notice that the issue contested in this appeal relates to disallowance of Rs. 12.5% of the value of alleged bogus purchases made by the AO. We notice that the assessee did not appear before the Ld.CIT(A) and hence, he was constrained to pass order ex-parte, without the presence of the assessee, wherein he confirmed the addition made by the AO. Since the Ld.CIT(A) has decided the issue against the assessee without hearing him, in the interest of natural justice, we are of the view that the assessee may be provided with one more opportunity to present his case properly before the Ld.CIT(A).
Accordingly, we set aside the ex-parte order passed by the Ld.CIT(A) and restore all the issues to the file of Ld.CIT(A) for adjudicating them afresh, after affording adequate opportunity of being heard to the assessee. We also direct the assessee to fully co-operate with the Ld.CIT(A) for expeditious disposal of the issue in appeal.
In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.