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Facts
The assessee filed an appeal challenging the order of the Ld CIT(A) which dismissed the appeal ex-parte as the assessee did not appear. The grounds of appeal relate to the validity of reopening of assessment and addition made under section 56(2)(vii)(c). The assessee's authorized representative submitted that the issues are legal.
Held
The Tribunal observed that the issues involved were both legal and factual. Considering that the Ld CIT(A) passed an ex-parte order, the assessee was granted another opportunity to present their case properly. The order of the Ld CIT(A) was set aside, and all issues were restored for adjudication on merits.
Key Issues
Whether the reopening of assessment and the addition made under section 56(2)(vii)(c) are valid. Whether the assessee should be given another opportunity to present their case before the Ld CIT(A) after an ex-parte order was passed.
Sections Cited
56(2)(vii)(c)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, Mumbai “C” Bench, Mumbai.
IN THE INCOME TAX APPELLATE TRIBUNAL Mumbai “C” Bench, Mumbai. Before Shri B.R. Baskaran (AM) & Shri Sunil Kumar Singh (JM) (A.Y. 2012-13) Nigel Peter Andrade Vs. ACIT, Circle-7(1)(2) (Legal Heir of Peter Mumbai-400020. Andrade) 204, Sumer Kendra, Pandurag Budhkar Marg, Worli, Mumbai-400018. PAN : AAAPA5059M (Appellant) (Respondent) Assessee by Shri Vijay Mehta Department by Shri H. M. Bhatt (Sr. DR) Date of Hearing 25.06.2024 Date of Pronouncement 04.07.2024 O R D E R PER B.R.BASKARAN (AM) :-
The assessee has filed this appeal challenging the order dated 13-02- 2024 passed by Ld CIT(A), NFAC, Delhi and it relates to the AY 2012-13.The grounds of appeal, the assessee is challenging the validity of reopening of assessment and the addition made u/s 56(2)(vii)(c) of the Act.
2. We notice that the assessee did not appear before Ld.CIT(A) and hence, the First Appellate Authority was constrained to pass the order ex-parte dismissing the appeal of assessee. The Ld A.R, however, submitted that the issues contested by the assessee are legal issues and hence the Tribunal may decide them.
3. However, on a perusal of the record, we notice that the issues contested by the assessee involve legal issues as well as issues on facts. Since the Ld CIT(A) has passed order ex-parte, we are of the view that the assessee may be Peter Andrade (Through Legal Heir)
provided with one more opportunity to present his case properly before Ld CIT(A). Accordingly, we set aside the order passed by Ld CIT(A) and restore all the issues to his for adjudicating them on merits, after affording adequate opportunity of being heard to the assessee. We also direct the assessee to fully co-operate with the Ld CIT(A) for expeditious disposal of the appeal.
In the result, the appeal filed by the assessee is treated as allowed.
Order pronounced in the open court on 04/07/2024