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Facts
The assessee's case was reopened under section 148 after noting a Rs.11,04,60,000/- transaction as an accommodation entry. The Assessing Officer added this amount under section 69C r.w.s. 115BBE. The assessee's appeal before the CIT(A) was dismissed ex-parte for non-compliance and failure to respond to notices.
Held
The Tribunal, while acknowledging the CIT(A)'s view that adequate opportunities were given, decided to grant one more opportunity to the assessee in the interest of justice. The order of the CIT(A) was set aside, and the matter was restored for a fresh assessment after providing a reasonable opportunity of being heard.
Key Issues
Whether the CIT(A) erred in dismissing the appeal ex-parte without affording the assessee an adequate opportunity to present their case, and whether the order should be restored for a fresh hearing.
Sections Cited
144, 147, 148, 69C, 115BBE
AI-generated summary — verify with the full judgment below
Date of Hearing 21.04.2025 Date of Pronouncement 21.04.2025 ORDER, PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against an ex-parte order dated 23.04.2024 of National Faceless Appeal Centre (NFAC)/Ld. CIT(A), Delhi, relating to Assessment Year 2013-14 arising out of order u/s 144 r.w.s. 147 of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 30.03.2022 passed by the National Faceless Assessment Centre, Delhi.
Brief facts of the case: The case was reopened vide notice u/s 148 of the Act dated 31.03.2021 after recording reasons that the transaction of Rs.11,04,60,000/- made by the firm assessee M/s Shiv Shakti Traders with M/s Orcha Trading company during the Financial Year 2012-13 pertaining to AY 2013-14 was an accommodation entry. During the assessment proceedings, the Assessing Officer did not accept the explanation of the assessee and added the said amount of Rs.11,04,60,000/- u/s 69C r.w.s.
115BBE of the Act.
Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A). The ld. CIT(A) dismissed the appeal of the assessee ex-parte as according to the Ld. CIT(A) the sought adjournments on five occasions and did not file any response on final date of hearing on 27.02.2024. The details of the same are mentioned on page no.5 of the order of the Ld. CIT(A).
Against the order of the ld. CIT(A), the assessee is in appeal before us.
The ld. AR submitted that the Ld. CIT(A) erred in confirming the assessment order ex-parte without affording the assessee an adequate opportunity to present his case. In this regard, he referred to the ground no.1 of the appeal, which is reproduced as under:-
“That, on the facts and circumstances of the case and in law, and in any view of the matter, the Ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre has erred in dismissing the appeal as ex-party mentioning in para 4.1 of the order that "the appellant had been given ample opportunities by way of issuing notices as detailed above but, the appellant had neither responded to the notices nor filed any written submission in compliance to such notices issued, whereas, the appellant had not received the last notice of hearing dated 27.02.2024 and however, requested for adjournment in response to previous notice of hearing dated 05.01.2024 fixed for hearing on 22.01.2024.”
The ld. Sr. DR supported the orders of the authorities below.
We have heard both the parties and perused the material available on record. In view of the fact stated in ground no.1 as above, we are of the considered view that the ld. CIT(A) did provide adequate opportunity to the assessee before dismissing the appeal. However, in interest of justice, we give one more opportunity to the assessee and set-aside the order of the ld. CIT(A) and restore the matter to his file to pass an order afresh after giving a reasonable opportunity of being heard to the assessee. Further, the assessee is also directed to appear before the Ld. CIT(A). Accordingly, grounds of appeal raised by the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is allowed for statistical purpose.
Order pronounced in the open court on 21st April, 2025.