DURGA RAO SOLA,VIJAYAWADA vs. INCOME TAX OFFICER, CIRCLE-1(1), VIJAYAWADA

This appeal is filed by the assessee against the order of Learned Commissioner of Income Tax (Appeals), Ahmedabad [hereinafter in Durga Rao Sola short “Ld. CIT(A)”]in DIN & Order No. ITBA/APL/S/250/2023- 24/1061515048(1) dated 26.02.2024 arising out of intimation passed under section 143(1) of the Income Tax Act, 1961 (in short ‘Act’) for the A.Y.2020-21.

Brief facts of the case are that, assessee being an individual filed his return of income for the A.Y. 2020-21 admitting a total income Rs.1,03,62,230/-. The return was summarily processed under section 143(1) of the Act by the Centralized Processing Centre, Bangalore [hereinafter in short “CPC”] on 30.11.2021 determining total income at Rs. 1,14,38,471/-. The addition made in the intimation was due to adjustment towards the late payment of EPF & ESI pertaining to employees’ contribution as deciphered from the Tax Audit Report submitted under section 44AB of the Act.

Before Ld. CIT(A), the assessee has not complied with various notices issued by the Ld. CIT(A). Ld. CIT(A) therefore dismissed the appeal of the assessee, considering that assessee is not interested in pursuing the appeal and has not provided any documents and material evidences before the Ld. CIT(A).

At the outset, Ld. Authorized Representative [hereinafter in short “Ld.AR”] submitted that the order of the Ld. CIT(A) is exparte and pleaded that one more final opportunity may be given to the assessee to substantiate and submit the documentary evidences with respect to disallowances.

Per contra, Ld. Departmental Representative [hereinafter in short “Ld. DR”] relied on the order of the Ld. CIT(A).

We have heard both the sides. Admittedly assessee has failed to respond to any of the notices issued by the Ld. CIT(A). The Ld. CIT(A) considering the non-compliances by the assessee and by relying on various judicial pronouncements have dismissed the appeal of the assessee. However, following the principles of natural justice, we find it deem fit to provide one more opportunity to the assessee as pleaded by the Ld.AR to substantiate his claim and submit material evidences before Ld. CIT(A) and thereby remitting the matter back to the file of the Ld.CIT(A). We also direct the assessee to comply with the notices before the Ld. CIT(A) and provide material evidences in connection with Page No. 3

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