Loading judgment…
Facts
The assessee filed an appeal against a penalty order. The CIT(A) dismissed the appeal because the assessee had attached grounds of appeal and statement of facts pertaining to a different assessee. The assessee's counsel claimed this was an inadvertent error by the authorized representative.
Held
The Tribunal held that the matter should be adjudicated on its merits rather than dismissed on procedural lapses. The appeal was restored to the CIT(A) to provide the assessee with a reasonable opportunity of being heard.
Key Issues
Whether the appeal should be dismissed on procedural grounds due to an error in filing documents, or adjudicated on merits.
Sections Cited
271(1)(c), 274
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “D” MUMBAI
Before: SHRI OM PRAKASH KANT & SHRI SUNIL KUMAR SINGH
This appeal by the assessee is directed against order dated 07.05.2024, passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short ‘the Ld. CIT(A)’] for assessment year 2009-10, raising following grounds:
1. On the facts, and in circumstances of the case, and in law, learned 1. On the facts, and in circumstances of the case, and in law, learned 1. On the facts, and in circumstances of the case, and in law, learned Commissioner of Income Commissioner of Income-tax (Appeal) erred in not giving opportunity to tax (Appeal) erred in not giving opportunity to rectify detect in filing the appeal. rectify detect in filing the appeal.
2. On the facts, and in 2. On the facts, and in circumstances of the case, and in law, the circumstances of the case, and in law, the Assessing Officer erred in imposing penalty under section 271 (1) (c) of the Assessing Officer erred in imposing penalty under section 271 (1) (c) of the Assessing Officer erred in imposing penalty under section 271 (1) (c) of the Income-tax Act 1961 without appreciating that the notice initiating penalty tax Act 1961 without appreciating that the notice initiating penalty tax Act 1961 without appreciating that the notice initiating penalty under section 274 read with section 271 (1) (c) was bad in l under section 274 read with section 271 (1) (c) was bad in law. aw.
3. On the facts, and in circumstances of the case, and in law, the 3. On the facts, and in circumstances of the case, and in law, the 3. On the facts, and in circumstances of the case, and in law, the Assessing Officer erred in imposing penalty under section 271 (1) (c) of the Assessing Officer erred in imposing penalty under section 271 (1) (c) of the Assessing Officer erred in imposing penalty under section 271 (1) (c) of the Income-tax Act 1961 amounting to RS 104,296 being tax sought to be tax Act 1961 amounting to RS 104,296 being tax sought to be tax Act 1961 amounting to RS 104,296 being tax sought to be evaded on estimated addition sustained @ evaded on estimated addition sustained @ 12.5% of alleged bogus 12.5% of alleged bogus purchases without appreciating that the addition of alleged non purchases without appreciating that the addition of alleged non purchases without appreciating that the addition of alleged non-genuine purchases was made on a difference of opinion; and there was neither purchases was made on a difference of opinion; and there was neither purchases was made on a difference of opinion; and there was neither concealment of income nor filing of inaccurate of income, as the Appellant concealment of income nor filing of inaccurate of income, as the Appellant concealment of income nor filing of inaccurate of income, as the Appellant had furnished all had furnished all material particulars in support of its claim of purchases material particulars in support of its claim of purchases further supported by the order of MAVT Department accepting the same further supported by the order of MAVT Department accepting the same further supported by the order of MAVT Department accepting the same purchases which the Assessing Officer treated as non genuine. purchases which the Assessing Officer treated as non genuine. purchases which the Assessing Officer treated as non genuine. 4. On the facts and circumstances of the case, and in law, the Ass 4. On the facts and circumstances of the case, and in law, the Ass 4. On the facts and circumstances of the case, and in law, the Assessing Officer erred in considering education cess as part of tax although as per Officer erred in considering education cess as part of tax although as per Officer erred in considering education cess as part of tax although as per the definition of tax under the Income the definition of tax under the Income-tax Act 1961, education cess does tax Act 1961, education cess does not partake character of "Tax", and is always added to the sum of tax by not partake character of "Tax", and is always added to the sum of tax by not partake character of "Tax", and is always added to the sum of tax by virtue of the provision of r virtue of the provision of relevant Finance Act. 2. Briefly stated, facts of the case are that against the penalty Briefly stated, facts of the case are that against the penalty Briefly stated, facts of the case are that against the penalty order dated 20.03.2019 passed by the Assessing Officer u/s order dated 20.03.2019 passed by the Assessing Officer u/s order dated 20.03.2019 passed by the Assessing Officer u/s 271(1)(c) of the Income 271(1)(c) of the Income-tax Act, 1961 (in short ‘the Act’) for tax Act, 1961 (in short ‘the Act’) for assessment year under consideration, t sment year under consideration, the assessee preferred appeal ee preferred appeal before the Ld. CIT(A) and filed Form No. 35 before the Ld. CIT(A) and filed Form No. 35 , grounds of appeal and grounds of appeal and statement of the facts etc. However, the Ld. CIT(A) has noted that statement of the facts etc. However, the Ld. CIT(A) has noted that statement of the facts etc. However, the Ld. CIT(A) has noted that assessee had attached the grounds of appeal and statement of the assessee had attached the grounds of appeal and statement of the assessee had attached the grounds of appeal and statement of the facts with the Form no. 35 pertainin with the Form no. 35 pertaining to different assessee namely different assessee namely Shri Mahesh Kumar Shri Mahesh Kumar Joshi. The Ld. CIT(A) has noted in the The Ld. CIT(A) has noted in the impugned order that he provided several opportunities to the impugned order that he provided several opportunities to the impugned order that he provided several opportunities to the assessee to furnish the relevant documents including grounds and assessee to furnish the relevant documents including grounds and assessee to furnish the relevant documents including grounds and statements of the facts statements of the facts of the case of assessee, however same was however same was not complied and therefore, appeal was dismissed. not complied and therefore, appeal was dismissed.
Before us, the Ld. counsel for the assessee submitted that Before us, the Ld. counsel for the assessee submitted that Before us, the Ld. counsel for the assessee submitted that inadvertently, the concerned authorized representative though filed inadvertently, the concerned authorized representative though inadvertently, the concerned authorized representative though the Form No. 35 correctly the Form No. 35 correctly, but attached the grounds and statement s and statement of the facts of the other person. The various notices issued by the of the facts of the other person. The various notices issued by the of the facts of the other person. The various notices issued by the Ld. CIT(A) could not be complied as same were not received by the could not be complied as same were not received by the could not be complied as same were not received by the assessee . Before us, the Ld. counsel for the assessee has expressed . Before us, the Ld. counsel for the assessee has expressed . Before us, the Ld. counsel for the assessee has expressed willingness to appear before the Ld. willingness to appear before the Ld. CIT(A) and file the correct CIT(A) and file the correct grounds of appeal , statement of facts in relation to the case of the statement of facts in relation to the case of the statement of facts in relation to the case of the assessee and necessary documents necessary documents in support of his claim. support of his claim.
3.1 In light of the facts and circumstances surrounding this case, In light of the facts and circumstances surrounding this case, In light of the facts and circumstances surrounding this case, we are of the view that the matt we are of the view that the matter should be adjudicated on its er should be adjudicated on its substantive merits rather than being dismissed on procedural substantive merits rather than being dismissed on procedural substantive merits rather than being dismissed on procedural lapses, specifically the non , specifically the non-filing of the grounds of appeal due to an filing of the grounds of appeal due to an error by the authorized representative. error by the authorized representative. Accordingly Accordingly, we hereby restore the appeal back to the Learned Commissioner of Income Tax restore the appeal back to the Learned Commissioner of Income Tax restore the appeal back to the Learned Commissioner of Income Tax (Appeals) for adjudication adjudication in accordance with the law. The Learned in accordance with the law. The Learned CIT(A) shall afford the assessee a reasonable opportunity of being CIT(A) shall afford the assessee a reasonable opportunity of being CIT(A) shall afford the assessee a reasonable opportunity of being heard. Upon receipt of the notice of hearing heard. Upon receipt of the notice of hearing from the Learned from the Learned CIT(A), the assessee is instructed to promptly submit the grounds of CIT(A), the assessee is instructed to promptly submit the grounds of CIT(A), the assessee is instructed to promptly submit the grounds of appeal along with a statement of facts pertinent to the case. appeal along with a statement of facts pertinent to the case. appeal along with a statement of facts pertinent to the case.
In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Order pronounced in the open Court on 19/08/2024. /08/2024.