DILIP JAYANTILAL SHAH,MUMBAI vs. DCIT CEN CIR 4(3), MUMBAI

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ITA 5412/MUM/2017Status: DisposedITAT Mumbai02 November 2017AY 2012-132 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal, in the interest of justice, granted the assessee one more opportunity to present their case before the AO. This was subject to the assessee paying a cost of Rs. 5,000/- for their failure to appear before the tax authorities.

What were the facts?

The assessee failed to appear before the CIT(A), leading to an ex-parte order. The assessee's counsel argued that the failure to appear was due to reasons beyond control and requested another opportunity. The department noted the assessee also did not appear before the AO.

What were the issues?

Whether the assessee should be granted another opportunity to present their case before the tax authorities after failing to appear before the CIT(A) and AO.

Which sections of the Income-tax Act were involved?

Section 144

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “SMC” Bench, Mumbai

Before: Shri B.R. Baskaran (AM)

For Appellant: Ms. Neelam Jadhav
For Respondent: Ms. N. Hemalatha
Hearing: 2.11.2017Pronounced: 2.11.2017

The appeal filed by the assessee is directed against the order dated 26.5.2017 passed by CIT(A)-52, Mumbai and it relates to A.Y. 2012-13.

2.

Ld. Counsel appearing for the assessee submitted that the assessee could not appear before CIT(A) for reasons beyond his control. However, CIT(A) has passed ex-parte order, without hearing the assessee. Accordingly, she prayed that the assessee may be given one more opportunity to present his case before CIT(A).

3.

Ld. DR submitted that the assessee has not appeared before the AO also and hence he was constraint to pass the order u/s. 144 of the Act to the best of his judgement.

4.

In the rejoinder, ld. AR submitted that the assessee has got all material before it and most of the items were furnished before the AO by way of letter dated 17.3.2015. However, the AO did not refer to them. Accordingly, she submitted that the assessee should be given an opportunity to explain his case properly.

2 Shri Dilip Jayantilal Shah

5.

Having regard to the rival submissions, I am of the view that, in the interest of justice, the assessee should be given one more opportunity to present his case properly. At the same time I am of the view that the assessee should bear a cost of Rs. 5000/- for his failure to appear before the tax authorities. Accordingly, I direct the assessee to pay a sum of Rs. 5,000/- to the credit of Income Tax Department as “other fees” on or before 30.11.2017. Subject to the payment of above said fees, I set aside the order passed by CIT(A) and restore all the issues to the file of the AO with the direction to examine them afresh after affording adequate opportunity of being heard to the assessee. I also direct the assessee to cooperate with the AO for expeditious disposal of the matter.

6.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order has been pronounced in the Court on 2.11.2017.

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