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Income Tax Appellate Tribunal, DELHI BENCH: ‘SMC-II’ NEW DELHI
Before: SHRI H.S. SIDHU
ORDER This appeal is filed by assessee against the order dated 28.12.2015 passed by the Ld. CIT(A)-I, Gurgaon relating to Assessment Year 2008-09 on the following grounds:-
1. On the facts and circumstances of the case, the Commissioner(Appeals) erred in holding that the action of assessing officer in making the addition of Rs 21,42,210/- u/s 144, is upheld while he was provided evidence that show cause notices dt 16.07.2014 and 121..08.2014 never reached the assessee.
2. On the facts and circumstances of the case, the Commissioner (Appeals) was not justified in forming an opinion that assessee intentionally avoided remand proceedings because he was explained that notice was received on 06.11.2015 for the date of 03.11.2015.
On the facts and circumstances of the case, the Commissioner (Appeals) was unjustified in ignoring the submission made by the assessee before him of all the information and evidences asked by Ld AO in his remand proceedings like Service tax returns, TDS returns and bank references, etc.
4. The assessee craves leave to add/alter any of the grounds of appeal on or before the date of hearing.
Facts narrated by the revenue authorities are not disputed by the assessee, hence, the same are not repeated here for the sake of convenience.
3. At the time of hearing, Ld. Counsel of the assessee has stated that Revenue authorities has passed the order in violation of the principle of natural justice and without giving adequate time and opportunity to the assessee to represent its case and to file its replies and clarifications. He requested that Ld. CIT(A) has remanded back the matter to the AO who gave a single opportunity which went a begging because it was received on 6.11.2015 for date of 3.11.2015. He further stated that Ld. CIT(A) handed over copy of remand report on 27.11.2015. On 1.12.2015, the assessee made representation to this fact to Ld. CIT(A) and enclosed service tax returns, complete set of final accounts, confirmation of payment of commission made together with detail of service rendered by them, TDS returns and copy of bank accounts to support the payment of commission made. He further stated that the assessee was asked to appear before the Ld. CIT(A) on 17.12.2015, but Ld. CIT(A) instead chose to close our case and concurred with the view of the AO since the assessee missed the opportunity of defending its case during the remand proceedings before the AO. He further stated that Ld. CIT(A) has decided the issue against the assessee exparte and without providing sufficient opportunity to the assessee. He further stated that the assessee is having all the necessary evidences which can be produced before the AO, if this Bench granted an opportunity to the assessee.
In this case, Notice of hearing to the parties were sent, in spite of the same, none appeared on behalf of the Revenue nor filed any application for adjournment. Keeping in view the facts and circumstances of the present case and the issue involved in the present Appeal, I am of the view that no useful purpose would be served to issue notice again and again to the Revenue, therefore, I am deciding the present appeal exparte qua Revenue, after hearing the Ld. AR of the assessee and perusing the records.
I have heard Ld. Counsel of the assessee and carefully gone through the orders passed by the authorities below and the contention raised. I have carefully gone through the impugned order passed by the Ld. CIT(A) and keeping in view of the facts and circumstances of the case, we are of the view that facts and circumstances of the case shows that the Revenue has not given sufficient opportunity to the assessee for substantiating its claim. Therefore, in the interest of justice, I am of the view that the matter requires thorough examination at the level of the AO, hence, the issues in dispute are set aside to the file of the AO to decide the same afresh under the law, after giving adequate opportunity of being heard to the assessee.
Assessee is also directed to fully cooperate with the AO during the proceedings before him and not to take any unnecessary adjournment in the case and also produce all the necessary evidences/ documents before the AO to substantiate his claim.
In the result, the appeal filed by the assessee stands allowed for statistical purposes.