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Facts
The assessee, engaged in running a petrol pump and plying buses, filed a return for AY 2017-18. The case was selected for scrutiny, and despite multiple notices and a show cause notice, the assessee failed to comply. Consequently, the Assessing Officer made additions under section 144 of the Act.
Held
The assessee's appeal before the CIT(A) was dismissed ex-parte due to non-compliance. The Tribunal, considering the interest of justice, decided to set aside the CIT(A)'s order and restore the matter for a fresh hearing.
Key Issues
Whether the ex-parte order of CIT(A) dismissing the appeal due to non-compliance is justified, and if an opportunity for fresh hearing should be granted to the assessee.
Sections Cited
144, 143(2), 142(1), 142(3)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AGRA BENCH ‘DB’ AGRA
Before: SHRI SUNIL KUMAR SINGH & SHRI BRAJESH KUMAR SINGH
Date of Hearing 01.04.2025 Date of Pronouncement 01.04.2025 ORDER PER BRAJESH KUMAR SINGH, AM,
This appeal filed by the assessee is directed against the ex-parte order dated 08.11.2024 of National Faceless Appeal Centre, Delhi, relating to Assessment Year 2017-18 arising out of order u/s 144 of the Income Tax Act, 1961 (hereinafter referred to ‘the Act’) dated 03.12.2019 passed by the Asst. Commissioner of Income Tax, Circle-4(1)(1), Aligarh.
None appeared on behalf of the assessee. However, the appeal of the assessee is being decided after hearing the ld. Sr. DR and on the basis of materials available on record.
Brief facts of the case: The assessee is engaged in running Petrol Pump Station and plying buses on contract basis. The assessee has shown income from business and other sources. The assessee has filed return of income on 30.12.2017 declaring total income of Rs.18,46,500/-. The case was selected for scrutiny under CASS. Thereafter a notice u/s 143(2) was issued on 21.09.2018. The Assessing Officer noted that no compliance was made. Subsequently, the Assessing Officer issued statutory notice u/s 142(1) along-with questionnaire on 14.01.2019. The assessee did not furnish any reply. Later on notices u/s 142(1) was again issued on 06.05.2019 but the assessee did not file any reply/information. Finally a show cause notice u/s 142(3) for non-compliance of these notices was issued on 31.10.2019 and again the assessee did not respond to this show cause notice. Therefore, the Assessing Officer completed the assessment u/s 144 of the Act in which following additions were made:
I. 30% of expenditure claimed by the assessee in Profit & Loss Account for wants of supporting documents- Rs.41,96,197/- II. Depreciation of Rs.5,55,0000/- III. Cash deposits during the demonetization period Rs.2,07,00,000/-
Aggrieved with the said order, the assessee filed an appeal before the Ld. CIT(A). The ld. CIT(A) gave several opportunities but the assessee failed to respond to the said notices. Therefore, the Ld. CIT(A) decided the appeal ex-parte and dismissed the appeal of the assessee.
Aggrieved with the order of the Ld. CIT(A), the assessee is in appeal before us.
We have heard the ld. Sr. DR and perused the grounds of appeal filed by the assessee. Considering the facts mentioned in the grounds of appeal, we are of the considered view that in the interest of justice, one more opportunity be given to the assessee to represent its case effectively before the ld. CIT(A). We, therefore, 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 for the assessee is allowed for statistical purpose.
Order pronounced in the open court on 1st April, 2025.