Loading judgment…
Facts
The assessee, a partnership firm, filed its return of income for AY 2017-18. The Assessing Officer assessed total income at Rs.3,40,61,893/- as against the returned income of Rs.2,94,060/-. The CIT(Appeals) confirmed this assessment. The assessee filed an appeal before the ITAT.
Held
The ITAT noted that the assessee failed to make submissions despite opportunities, citing principles of natural justice not being observed. The Tribunal decided to give one last opportunity to the assessee and remit the matter back to the CIT(Appeals) for fresh adjudication.
Key Issues
Whether the addition to the assessee's income was justified, and if the principles of natural justice were followed in the ex parte assessment order.
Sections Cited
250, 143(1), 143(2), 142(1), 144
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH, AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI MANISH AGARWAL
ORDER
Per Sunil Kumar Singh, Judicial Member:
This appeal has been preferred by assessee against the impugned order dated 27.09.2023(communication of order on 03.02.2025) passed in Appeal No. CIT (APPEALS) 1, AGRA/10237/2019-20 by the Ld. Commissioner of Income-tax (Appeals), NFAC, Delhi u/s. 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”), wherein the learned first appellate authority has confirmed assessee’s total assessed income of Rs.3,40,61,893/- as against returned income of Rs.2,94,060/- determined by the Assessing Officer vide assessment order dated 18.10.2019 passed u/s. 144 of the Act and dismissed assessee’s first appeal.
Briefly stating, the assessee is a partnership firm and e-filed its return of income for A.Y. 2017-18 on 25.10.2017 showing income of Rs.2,94,060/- The return was processed u/s. 143(1) of the Act. Thereafter, case was selected for scrutiny. Statutory notices u/s. 143(2) and 142(1) of the Act were issued and served upon the assessee. After considering the submissions of the assessee, ld. Assessing Officer assessed total income at Rs.3,40,61,893/- u/s. 144 of the Act.
Aggrieved, assessee preferred an appeal before the ld. CIT(Appeals), who dismissed assessee’s appeal.
This appeal has been filed on the ground that the said addition in assessee’s returned income is unjustified, arbitrary and legally untenable, ignoring the deposits recorded in the assessee’s cash book.
None responded for the assessee. Perused the records and heard the learned Departmental Representative in attendance, who supported the impugned order.
Perusal of the impugned order shows that certain submissions were made by the assessee through ITBA Portal before CIT(Appeals)-1, Agra.
However, after the migration of the appeal to NFAC, Delhi, the assessee did not make any compliance/submission in response to notice dated 2 | P a g e 18.07.2023. Thereafter, another opportunity was granted to the assessee to submit its submission latest by 23.08.2023, but for no avail. The irresponsive conduct of the assessee cannot be appreciated. However, it appears that the principles of natural justice have not been observed in substance. The impugned order seems to have been passed ex parte for want of assessee’s submissions. In the interest of justice and fair play, we deem it just and appropriate to afford last opportunity to the assessee and remit the matter back to the file of learned CIT(Appeals) for adjudication of the matter afresh. We order accordingly. We further direct the assessee to be diligent and cooperative in attending the hearings and making submissions before the learned CIT(Appeals) for the expeditious and effective disposal. Assessee shall refrain from seeking any adjournment but for compelling and unavoidable reasons. Needless to say that learned CIT(Appeals) shall ensure the observance of the principles of natural justice. The appeal is liable to be allowed accordingly.
In the result, the appeal is allowed for statistical purposes. The impugned order dt. 27.09.2023 is set aside. Order pronounced in the open court on 29.05.2025.