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Facts
The assessee, proprietor of M/s. S.A. Steel Traders, had their income assessed at Rs. 1,59,68,337 against a returned income of Rs. 6,13,410, with an addition of Rs. 1,53,52,987 towards 'Bogus Purchasers'. The assessee's appeal before the CIT(A) was dismissed ex-parte.
Held
The Tribunal held that the CIT(A) erred by dismissing the appeal ex-parte without considering the assessee's filed adjournment petitions. The CIT(A)'s observation that the assessee did not respond to notices was deemed incorrect.
Key Issues
Whether the CIT(A) was justified in dismissing the appeal ex-parte without considering the adjournment petitions filed by the assessee.
Sections Cited
143(3), 143(3A), 143(3B), 250
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “C’’ BENCH: BANGALORE
Before: SHRI CHANDRA POOJARI & SHRI SOUNDARARAJAN K.
PER SOUNDARARAJAN K., JUDICIAL MEMBER:
This appeal by assessee is directed against order of NFAC, Delhi for the assessment year 2018-19, passed u/s 250 of the Income Tax, Act, 1961 (in short “The Act”) dated 22.1.2024.
Brief facts of the case are that the assessee Mr. Mohammed Waseem is the proprietor of M/s. S.A. Steel Traders dealing in purchase and sales of M.S. Scrap. The ld. AO has passed his orders u/s 143(3) r.w.s. 143(3A) & 143(3B) of the Act on 16.4.2021. As against the returned income of Rs.6,13,410/-, the ld. AO has assed the income at Rs.1,59,68,337/- making an addition of Rs.1,53,52,987/-. The addition is towards “Bogus Purchasers” to the extent of Rs.1,53,52,987/-. Against this, the assessee has filed an appeal before CIT(A). The ld. CIT(A) issued notice for hearing as follows:
Mohammed Waseem, Bangalore Page 2 of 3
Date of Notice Date of compliance Status 06.10.2023 11.10.2023 No compliance 03.01.2024 10.01.2024 No compliance 11.01.2024 18.01.2024 No compliance (Final opportunity)
2.1 The assessee filed an adjournment petition on 10.1.2024 through e-mail addressed to the mail address of the department which was also acknowledged by the department. Thereafter, another notice was issued by the CIT(A) and directed the assessee to file written submissions electronically on or before 18.1.2024. On receipt of above said notice, the assessee again sought for an adjournment by filing a petition dated 17.1.2024, which was also sent by e-mail on 17.1.2024, which was duly acknowledged by the department. Inspite of the adjournment petitions filed by the assessee, the ld. CIT(A) without considering the petitions had proceeded to decide the issue ex-parte and finally dismissed the appeal of the assessee. 2.1 Before us, the assessee also filed a paper book enclosing the adjournment petitions and the acknowledgements downloaded from the portal of the department and contended that the ex-parte order of the ld. CIT(A) is not sustainable and prayed to grant one more opportunity of hearing before the ld. CIT(A).
We have heard the rival submissions and perused the materials available on record. As seen from the paper book filed by the assessee, it is a fact that the assessee had filed two adjournment petitions which were also acknowledged by the revenue but inspite of that without considering the adjournment petitions dated 10th & 17th January, 2024, and without communicating anything about the adjournment petitions filed by the assessee, the ld. CIT(A) has decided the issue ex-parte on merits. Against this assessee is in appeal before us. We find that, prima facie the ex-parte order passed by the ld. CIT(A) is erroneous since he has not considered the Mohammed Waseem, Bangalore Page 3 of 3 adjournment petitions dated 10th & 17th Jan’24 and therefore the observation that the assessee had not responded to the notices are not correct and therefore, the order of the ld. CIT(A) is liable to be set aside on the sole ground that the ld. CIT(A) has not considered the adjournment petitions filed by the assessee through e-mail. Therefore, in the interest of justice, we set aside the order of ld. CIT(A) and remit the matter to his file to decide the matter afresh after giving an opportunity of being heard to the assessee. The assessee is also directed to cooperate with the department by furnishing necessary details in support of it’s claim. Accordingly, the issue in dispute is remitted to the file of ld. CIT(A) for de-novo consideration.
In the result, appeal of the assessee is partly allowed for statistical purposes.
Order pronounced in the open court on 17th Apr, 2024