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Facts
The assessee's appeal was filed against the order of the Learned Commissioner of Income-tax (Appeals) which confirmed an addition of Rs. 2,99,41,825/- made by the Assessing Officer (AO). The assessee claimed non-receipt of notices and requested another opportunity to present their case.
Held
The Tribunal noted that the assessee failed to comply with multiple notices from the CIT(A) without providing a satisfactory explanation, leading to an ex-parte assessment and appeal order. However, acknowledging that the assessee did not get an opportunity to present evidence before any authority, the Tribunal restored the issues to the CIT(A) for adjudication on merits.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte due to non-compliance with notices, and whether the assessee had a reasonable cause for such non-compliance.
Sections Cited
144, 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, MUMBAI BENCH “C”, MUMBAI
Before: SHRI B.R. BASKARAN & SHRI ANIKESH BANERJEE
Instant appeal of the assessee was filed against the order of theLearned Commissioner of Income-tax (Appeals) / Addl CIT (A)-2, Guwahati, [for brevity, ‘Ld.CIT(A)’] passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’), for Assessment Year 2014-15, date of order 05.04.2024. The impugned order was emanated from the order of the Learned Deputy
The assessee has taken the following grounds of appeal:-
“1] The learned CIT(A) erred in dismissing the appeal of the assessee ex-parte on the ground that there was non compliance on the part of the assessee to the various notices issued by him and thereby erred in confirming the addition of Rs.2,99,41,825/- made by the learned A.O.
2] The assessee submits that there was a reasonable cause on its part for the non compliance to the notices issued by the learned CIT(A) and accordingly, requests for one more opportunity to present its case before the learned CIT(A).
3] The assessee submits that it had not received the notices issued by the learned CIT(A) and therefore, there was non compliance on its part to the notices issued by the learned CIT(A) and hence, requests for one more opportunity to present its case before the learned CIT(A). 4] The assessee submits that the loss disallowed by the learned A.O. of Rs.2,99,41,825/- is not justified and accordingly, the learned CIT(A) ought to have deleted the said addition. 5] The learned CIT(A) erred in holding that the learned A.O. was justified in passing the asst. order u/s 144 without appreciating that there was a reasonable cause on the part of the assessee in not attending before the learned A.O. and accordingly, the addition made of Rs.2,99,41,825/- may kindly be deleted. 6] The assessee submits that the loss of Rs.2,99,41,825/- claimed by it in the return of income was justified and hence, there was no reason to make any disallowance in respect of the loss claimed by the assessee. 7] The assesseerequests for admission of additional evidence in support of its case. 8] The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal
.”
3. When the appeal was called for hearing, none was present on behalf of the assessee. The adjournment petition was filed. But the reasons for adjournment Power Cube Electro Controls Private Limited was not convincing before the bench. So, considering the merit of the case, we proceed to dispose of the appeal on exparte qua for assessee, after hearing the Ld.DR.
4. We heard the Ld.DR and considered the documents available on the record and perused the orders of the revenue authorities. The assessment was completed exparte under section 144 of the Act. In the appeal proceedings, the Ld.CIT(A) had allowed several opportunities for hearing the matter, but none of the notices was complied with. The assessee has not explained the proper reason for noncompliance of the notices before the Ld.CIT(A). Accordingly, the addition amount of Rs.2,99,41,825/- is confirmed. We find that the assessee has not got the opportunity to submit its evidence before any of the authorities. Accordingly, one more opportunity should be allowed, for the sake of justice. Since the assessee is not able to provide satisfactory explanation about noncompliance of notices issued by the ld. CIT(A), we are of the view that the assessee should be imposed a cost in order to make him understand the importance of income tax proceedings. Accordingly, we impose the cost amount to Rs.5,000/- (Rupees five thousand only) upon the assessee which shall be paid to the credit of Income Tax Department within two months from the date of receipt of this order.
Subject to the payment of above cost which shall be verified by the ld. CIT(A). All the issues are restored to the file of the ld. CIT(A) for adjudicating the case on merits. We are not expressing any views on the merits of the case so as to limit the appellate procedure before the Ld. CIT(A). Needless to say, theassessee should get a reasonable opportunity of hearing. The assessee should be diligent in appeal proceeding for expeditious disposal of appeal.