What did the Tribunal hold?

The Tribunal restored the matter to the CIT(A) for re-adjudication, emphasizing the principle of natural justice. The assessee was directed to present their case properly before the CIT(A).

The assessee's appeal contested an ex-parte order from the CIT(A) for AY 2012-13, where significant disallowances were made. The assessee did not appear before the appellate authority.

What were the issues?

Whether the ex-parte order passed by the CIT(A) violated the principles of natural justice, and if the assessee should be given another opportunity to present their case.

Mahesh Agri Exim Private Limited vs DCIT | ITAT Mumbai 2018

Income Tax Appellate Tribunal, “I” BENCH, MUMBAI

Before: SHRI SAKTIJIT DEY, JM & SHRI MANOJ KUMAR AGGARWAL, AM

For Respondent: DR Assessee by :

Per Manoj Kumar Aggarwal (Accountant Member) 1. The captioned appeal by assessee for Assessment Year [AY] 2012-13 contest the ex-parte order of the Ld. Commissioner of Income Tax (Appeals)-24 [CIT(A)], Mumbai, Appeal No.CIT(A)-24/DCIT-15(2)(2)/IT- 260/2015-16 dated 09/03/2017 by raising various grounds of appeal. The Mahesh Agri Exim Private Limited Assessment Year 2012-13 assessment for impugned AY was completed u/s 143(3) by Ld. Deputy Commissioner of Income Tax-15(2)(2) on 19/03/2015 where the assessee has suffered quantum disallowance aggregating to Rs.114.06 Lacs. None is present for assessee before us and therefore, we proceed to dispose-off the same on the basis of material available on record and after hearing Ld. Departmental Representative [DR].

As emanating from records, the appeal has been fixed for hearing on 11/09/2019 and the assessee, vide letter dated 20/12/2017 explaining the reasons of non-appearance before Ld. first appellate authority, has requested for early hearing in the matter. The same is duly supported by the affidavit of the assessee. After going through the grounds of appeal

, it is noted that the assessee has contested the impugned order, inter-alia, on the principle of natural justice since the order of Ld. CIT(A) was an ex-parte order and the assessee could not contest the various additions on merits. The Ld. DR raised no serious objections against remitting the matter back to the file of Ld.CIT(A) for re-adjudication.

3. In view of the above factual matrix and keeping in view the principle of natural justice, without delving much deeper into the issue or adjudicating the petition for early hearing, the matter is remitted back to the file of Ld. CIT(A) for re-adjudication after providing adequate opportunity of being heard to the assessee. The assessee, in turn, is directed to substantiate his claim in this regard before Ld. first appellate authority failing which the Ld. Mahesh Agri Exim Private Limited Assessment Year 2012-13 CIT(A) shall be at liberty to dispose-off the same on the basis of material available on record.

4. Resultantly, the assessee’s appeal stands allowed for statistical purposes on legal grounds. Order pronounced in the open court on 17th January, 2018.

MAHESH AGRI EXIM PRIVATE LIMITED,MUMBAI vs. DEPUTY COMMISSIONER OF INCOME TAX 15(2)(2), MUMBAI

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