SHIVAM ENTERPRISES,HARDA vs. NATIONAL FACELESS ASSESSMENT CENTRE, DELHI

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ITA 224/IND/2024Status: DisposedITAT Indore31 July 2024AY 2016-17Bench: SHRI VIJAY PAL RAO (Judicial Member), SHRI B.M. BIYANI (Accountant Member)5 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had sent notices to email addresses not provided by the assessee. Therefore, the ex-parte order of the CIT(A) was set aside, and the matter was remanded for fresh adjudication.

What were the facts?

The assessee's appeal before the CIT(A) was dismissed for non-prosecution. The assessee contended that notices from the CIT(A) were sent to incorrect email addresses, thus not coming to their knowledge. The Revenue did not object to a remand.

What were the issues?

Whether the CIT(A) erred in dismissing the appeal for non-prosecution when notices were sent to incorrect email addresses, and whether the reassessment proceedings were validly initiated.

Which sections of the Income-tax Act were involved?

Section 148,Section 142(3),Section 69A,Section 115BBE,Section 147,Section 153C,Section 144B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: Ms. Nisha Lahoti, AR
For Respondent: Shri Ashish Porwal, Sr. DR
Hearing: 31.07.2024

This appeal by assessee is directed against the order dated 07.02.2024 of the Commissioner of Income Tax (Appeal), National Faceless Appeal Centre, Delhi for A.Y.2016-17. The assesse has raised following grounds of appeal:

“1. On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in sustaining the assessment order passed by Ld. AO which is contrary to ITANo.224/Ind/2024 Shivam Enterprises the material on records and provisions of the Act, unjust and bad in law.

2.

On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in not providing the copy of the approval obtained for issuing notice u/s 148 3. On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in treating the return of income filed in response to notice u/s 148 as invalid.

4. On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in not complying with the provisions of section 142(3) by not providing the information and documents gathered which formed the basis of inquiry and in the absence of an opportunity of being heard given to the assessee in respect such gathered material 5. On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in sustaining the addition made u/s 69A rws 115BBE of Rs. 5,83,27,676 as undisclosed money arising out of unexplained receipt of income 6. On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in sustaining the reassessment proceedings initiated on the basis of the document seized during search operations carried out in the case of third person 7. On the facts and circumstances of the case and applicable law, Ld. CIT(A) and Ld. AO erred in not providing opportunity of cross examination of the searched person 8. On the facts and circumstances of the case and applicable law, Ld. CIT(A) erred in sustaining the reassessment proceedings w/s 147 based on the material seized from search operations carried out at the premises

ITANo.224/Ind/2024 Shivam Enterprises of third person more particularly when specific provisions are laid down u/s 153C 9. On the facts and circumstances of the case and applicable law, 1,74,98,303 Ld. CIT(A) erred in sustaining addition made u/s 69A rws 115BBE of Rs. 5,83,27,676 as undisclosed money arising out of unexplained receipt of income without giving sufficient opportunity of being heard 10. The appellant craves leave to add, amend, alter or otherwise raise any other ground of appeal

.”

2. At the time of hearing Ld. AR of the assessee has submitted that the CIT(A) has dismissed the appeal of the assessee for non- prosecution. She has pointed out that the CIT(A) has issued the notices to e-mail ID other than the e-mail ID given by the assesse in form

35. She has referred to the form no.35 and e-mail ID given by the assesse as well as the record taken from the e-filing portal of the department shown the notices issued by the CIT(A) were sent to different e-mail ID not given in the form 35 and therefore, these notices were not in the knowledge of the assessee and consequently there was no response to those notices. Thus, the ld. AR has pleaded that the impugned order of the CIT(A) be set aside and matter may be remanded to the record of the AO for fresh adjudication.

3.On the other hand, ld. DR has not raised any objection if the matter is remanded to the record of the AO and submitted that the AO has passed the best judgment assessment when the assesse failed to furnish any reply to the questionnaire issued by the AO as ITANo.224/Ind/2024 Shivam Enterprises well as supporting evidences as recorded in para 9.2 of the assessment order.

4.

We have considered rival submissions as well as relevant material on record. The CIT(A) has passed ex-parte impugned order whereby the appeal of the assesse was dismissed for want of any submissions/documentary evidences despite various notices issued. The details of the notices are given by the CIT(A) as under: s.no. Notice issue date Date of compliance Response of (through ITBA) appellant 1 11.09.2023 26.09.2023 No written submission filed in support 04.10.2023 19.10.2023 of grounds of appeal. No 22.11.2023 07.12.2023 request of adjournment 08.12.2023 and 22.12.2023 and made. 08.01.2024 23.01.2024 4.1 Ld. AR has filed copies of the e-filing portal of the department showing the notices issued by the CIT(A) and sent to the e-mail ID carajneesh67@gmail.com & hiteshharda@gmail.com whereas the assessee has given e-mail ID in form 35 for communication of notices/orders as spplharda@gmail.com. Therefore, it is clear that ITANo.224/Ind/2024 Shivam Enterprises the notices were sent by the CIT(A) to the e-mail IDs which were not given by the assesse for the purpose of communication of notices. Accordingly in the facts and circumstances of the case when the appeal of the assesse was not decided on merits but was dismissed due to non-prosecution and the assessment order was also passed u/s 144B then the impugned order of the CIT(A) is set aside and matter is remanded to the record of the AO for fresh adjudication after giving an appropriate opportunity of hearing to the assessee.

5.

In the result, the appeal of the assessee is allowed for statistical purposes.

Order pronounced in the open court on conclusion of hearing on 31.07.2024.

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