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Facts
The assessee filed a return of income. Subsequently, the case was reopened based on information that the assessee had taken accommodation entries for bogus purchases. The Assessing Officer added the entire purchase amount as bogus and finalized the assessment ex parte.
Held
The assessee's appeal before the CIT(A) was dismissed for non-compliance with hearing notices, and the addition made by the AO was sustained. The Tribunal noted that the CIT(A) did not adjudicate on merit and restored the case for fresh adjudication.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal without adjudicating on merit, and if the case should be remanded for fresh adjudication.
Sections Cited
250, 144, 147
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Income Tax Appellate Tribunal, MUMBAI BENCH “A”, MUMBAI
Before: SHRI AMARJIT SINGH & SHRI SANDEEP SINGH KARHAIL
PER AMARJIT SINGH, ACCOUNTANT MEMBER:
This appeal of the assessee for the assessment year 2011-12 is directed against the order u/s 250 of the Income-tax Act, 1961 dated 09.10.2023 passed by the ld. Commissioner of Income-tax (Appeal), National Faceless Appeal Centre, Delhi.
Facts in brief are that the return of income declaring the total income of Rs.1,62,040/- was filed on 28th September, 2011. Subsequently, the case of the assessee was reopened on the basis of the information received from Maharashtra Sales-tax Department/DIGT (INV), Mumbai that the assessee had taken Amforge Industries, Mumbai. A.Y. 2011-12 accommodation entries in the form of bogus purchases from Hawala operators. The assessee has not made any compliance before the Assessing Officer, therefore, the AO has added the whole amount of purchases of Rs.1,32,99,193/- as bogus purchases to the total income of the assesse and assessment was finalized u/s 144 r.w.s.147 of the Act ex parte on 12th December, 2018.
Against the order of the Assessing Officer, the assessee has preferred appeal before the ld.CIT(A). The ld.CIT(A) has passed order u/s 250 of the Act on 9th October, 2023 and dismissed the appeal of the assessee for not making any compliance to the notices of hearing issued during the course of appellate proceedings and sustained the addition made by the AO.
Heard the ld. DR and perused the material on record. Without reiterating the facts as discussed above in this order, the ld.CIT(A) has dismissed the appeal filed by the assessee without adjudicating on merit since the assessee has not made any compliance to the notices of hearing issued by the ld.CIT(A). Since the Assessing Officer has made 100% disallowance of purchases made by the assessee which was sustained by the ld.CIT(A), therefore, we consider it appropriate to restore the case to the file of the ld.CIT(A) for adjudicating on merit after providing three more opportunities of hearing to the assessee. Accordingly, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 16.10.2024.