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Income Tax Appellate Tribunal, HYDERABAD BENCHES “A” , HYDERABAD
Before: SHRI R.K. PANDA & SHRI LALIET KUMAR
O R D E R PER LALIET KUMAR, J.M.
This appeal is filed by the assessee, feeling aggrieved by the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi dated 18.09.2023 for the AY 2013-14 on the following grounds :
2. The grounds raised by the assessee reads as under :
“1. That on factss and circumstances of the case and in law, the Order u/s 143(3) rws 147 of the Income-tax Act, 1961 ('Act') is bad in law.
That on the facts and circumstances of the case, the Ld.AO/CIT(A) erred in carrying out an addition towards sundry creditors amounting to Rs.2,53,77,255.
3. That on the facts and circumstances of the case, the Ld.AO/ CIT(A) erred in carrying out an addition towards sundry debtors amounting to Rs.2,20,86,882.
4. That on the facts and circumstances of the case, the Ld.AO/ CIT(A) have erred in ignoring the written submission as well as the information filed and carried out the addition in respect of Sundry Debtors and Sundry Creditors.”
Facts of the case, in brief, are that assessee, who is an individual, filed her return of income on 25.07.2018 in response to a notice u/s 148 declaring a loss of Rs.2,97,586/-. Thereafter, notices were issued u/ s. 143(2) and 142(1) of the Income Tax Act, 1961 calling for information. As there was no response from the assessee by 24.12.2018, show cause and final opportunity letter along with notice u/ s. 142(1) dated 24.12.2018 was issued and served on the assessee. Subsequently, AR of the assessee has appeared on 28.12.2018 and requested for two days time to furnish the information as required. Accordingly, the AR was permitted to furnish information on 31.12.2018 failing which the assessment will be completed based on the information available on record and as proposed in the above said show cause and final opportunity letter. However, neither the assessee nor the said AR has appeared on the stipulated date.
3.1. On verification of record, Assessing Officer noticed that the assessee has shown sundry creditors of Rs.2,53,77,257/- and sundry debtors of Rs.2,20,86,882/-. As the assessee has failed to furnish proper evidence for the said sundry creditors and the sundry debtors, the same were added to the income returned. Thus, Assessing Officer completed the assessment and passed assessment order on 31.12.2018 u/s 143(3) r.w.s. 147 of the Act, assessing the income at Rs.4,74,64,140/-.
Feeling aggrieved by the order passed by the assessing officer, assessee filed appeal before the Ld. CIT(A) / NFAC, who dismissed the appeal of assessee on account of non-prosecution and on merits.
Feeling aggrieved with the order of ld.CIT(A), assessee is now in appeal before us.
Before us, ld.AR submitted that the assessee has failed to provide necessary information and appear before the lower authorities. Hence, the ld. AR requested the Bench to remand the matter back to the file of Assessing Officer. Ld.AR further submitted that as the assessee has sufficient cause from putting in appearance before the ld.CIT(A), matter may kindly be remitted back to the authorities below for afresh adjudication.
Per contra, the ld.DR has not raised any objection for remanding the matter back to the file of lower authorities.
8 We have heard the rival contentions of both the parties and perused the material available on record and also the order passed by the lower authorities. On perusal of the impugned order passed by ld.CIT(A), we found that ld.CIT(A) passed an order confirming the action of the Assessing Officer in his assessment framed on 31.12.2018. The merits of the assessee’s appeal before the ld.CIT(A) have neither been discussed nor decided by the ld.CIT(A). From para 4 of the order of ld.CIT(A), it is clear that ld.CIT(A) was forced to decide the appeal on the basis of material available on record, as there was no representation on behalf of the assessee. In view of the above reasons, in our view, the ends of justice will be met if the matter is remanded back to the file of ld.CIT(A) with a direction to decide the issue after considering the documents available on record and affording the opportunities of hearing to the assessee in accordance with law subject to payment of costs of Rs.5,000/- (Rupees Five Thousand only) in favour of Prime Minister National Relief Fund which shall be payable within one month or from the date of receipt of this order or whichever is earlier.
The assessee shall be at liberty to file documents, if any, as required for proving her case and the ld.CIT(A) shall consider the evidences, if any, filed by the assessee. Needless to say the ld.CIT(A) shall examine those documents / evidence filed by the assessee and also the other documents available on record. After considering the documents filed by the assessee and the submissions made by the assessee, the ld.CIT(A) shall pass a detailed speaking order dealing with the contentions of the assessee. We have not adjudicated the other grounds on merits as we are setting aside the orders passed by the lower authorities to the file of ld.CIT(A) for fresh adjudication. Thus, the grounds of the assessee are allowed for statistical purposes.
In the result, the appeal of the assessee is treated as allowed for statistical purposes.
Order pronounced in the Open Court on 28th February, 2024.