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Income Tax Appellate Tribunal, “C” BENCH : BANGALORE
Before: SHRI SUNIL KUMAR YADAV & SHRI A. K. GARODIA
Per Sunil Kumar Yadav, Judicial Member
This appeal is filed by the assessee against the order of CIT(A), interalia, on the following grounds:
The learned Commissioner of Income Tax (Appeals) ['CIT(A)'] erred on facts and circumstances of the case and in law in dismissing the appeal of the appellant without considering the written submissions and details submitted by the appellant before him.
2. The learned CIT(A) erred on facts and circumstances of the case and in law in dismissing the appeal of the appellant without giving sufficient opportunity to the appellant to represent his case further. 3. The learned CIT(A) erred on facts and circumstances of the case and in law in not appreciating the merits of the case of the appellant in confirming the addition of (i) Rs 18,63,402 as unexplained expenditure without considering the complete cash book and explanations submitted to the CIT(A). (ii) Rs 74,122 as unexplained sundry expenses for the balances payable to sundry creditors without considering the transactions between the parties during the earlier and the subsequent financial years. (iii) Rs 4,84,105 as difference in balance of sundry creditors without proper verification of facts. (iv) Rs 26,70,000 as unexplained cash credits without appreciating the source of funds which was explained and without appreciating the business expediency.
4. The learned CIT (A) erred on facts and circumstances of the case and in law in confirming the Asallowance under section 40A(3) of the Act amounting to Rs 1,60,000 without appreciating the business expediency under which a part of the payment to the sundry creditors was made in cash and another part was made through cheque.
5. The learned CIT (A) erred on facts and circumstances of the case and in law in confirming the levy of interest under section 234B of Rs 5,90,313 and under section 234C of Rs 1,107.
6. That the Appellant craves leave to add to and / or to alter, amend, rescind, modify, the grounds herein above or produce further documents before or at the time of hearing of this appeal.
During the course of hearing, the learned counsel for the assessee has invited our attention that the CIT(A) has not afforded proper opportunity of being heard and disposed the appeal summarily having recorded that the assessee has not appeared to prosecute its appeal.
The learned counsel for the assessee has also invited our attention to the notice issued by the CIT(A) in which it has been categorically mentioned that attendance is not necessary and written submissions may be filed on behalf of the assessee on the basis of which the appeal can be disposed off. Relying upon the contents of the notice, the assessee has filed the details but the CIT(A) did not take cognizance of the same and dismissed the appeal having observed that the assessee is not interested in prosecuting the appeal. Copy of the notice issued is placed on record.
The learned DR placed reliance upon the orders of the CIT(A).
Having carefully examined the orders of the lower authorities, in the light of the notice from the office of the CIT(A), we find that when CIT(A) has itself mentioned in the notice that attendance is not necessary and assessee may file the written submissions, then he should have examined the written submissions filed by the assessee while disposing of the appeals. But he did not do so. He ignored the written submissions and disposed off the appeal having observed that the assessee is not interested in prosecuting its appeal. We therefore are of the view that CIT(A) has not afforded proper opportunity of being heard to the assessee. We therefore
Page 4 of 4 set aside the order of the CIT(A) and restore the matter to his file with the direction to readjudicate the appeal afresh after affording an opportunity of being heard to the assessee.
In the result, appeal of the assessee is allowed for statistical purposes.
Pronounced in the open court on 28th April, 2017.