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Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE
Before: SHRI DR. DIPAK P. RIPOTE & SHRI VINAY BHAMORE
ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 29.12.2023 passed by Ld CIT(A)/NFAC for the assessment year 2017-18.
The appellant has raised the following grounds of appeal :- “1] The learned CIT(A) erred in confirming the disallowance of Rs.71,90,315 towards interest cost incurred for earning interest income credited to profit and loss account without appreciating that the said disallowance was not justified on facts and in law. 2] The learned CIT(A) failed to appreciate that the fact that the interest expenditure of Rs. 71,90,315 was incurred in respect of loans borrowed for the purposes of earning the interest income ITR and financial statements filed for A.Y. 2017 - 18 which were available on record of the A.O. and hence, the disallowance made by the A.O. in the asst, order passed u/s 144 was arbitrary and unjustified on facts of the case. 3] Without prejudice to the above grounds, the appellant undertakes to make proper compliance before the A.O. if one more opportunity of hearing is granted in the interest of justice and hence, it is prayed that the matter may please be set aside to the file of the A.O. for passing the asst, order after proper appreciation of facts already available on his record. 4] The appellant craves leave to add/ alter/ amend any of the grounds of appeal.”
3. The facts, in brief, are that the assessee is an individual filed his return of income for the assessment year 2017-18 on 24.03.2018, declaring taxable income of Rs.18,01,790/-. The case was selected for scrutiny under CASS & It was seen by the AO that the assessee has claimed deduction of Rs.71,90,315/- u/s 57 of the I. T. Act. Notices under the provisions of section 143(2) and section 142(1) of the IT Act were issued and served upon the assessee. In reply, the assessee vide letter dated 18.07.2019 made partial submission and prayed for time to file documents in support of claim u/s 57 of the IT Act. In the absence of documents in support of claim, the Assessing Officer without providing further opportunity proceeded to disallow the deduction of Rs.71,90,315/- claimed by the assessee u/s 57 of the IT Act on the ground of non- verification of above deduction and completed the assessment u/s 144 of the IT Act vide order dated 01.10.2019 determining total income at Rs 89,92,105/- 4. Being aggrieved with the above order of the Assessing Officer, an appeal was preferred before Ld CIT(A)/NFAC. Since the assessee remained absent, Ld CIT(A)/NFAC vide order dated 29.12.2023 dismissed the appeal of the assessee.
Being aggrieved with the decision of Ld. CIT(A)/NFAC, the assessee is in appeal before this Tribunal.
Ld counsel of the assesse submitted before us that that the notices were issued only on ITBA portal & not on email of the assessee, therefore they could not see the notices & consequently could not reply in support of grounds of appeal
before Ld CIT(A)/ NFAC. It was also submitted before us that along with return of income computation of income P&L account & other relevant information was already available which was not considered by the AO while passing the assessment order ex-parte. It was also informed that the computer of the assessee was hacked by CETORIE Virus due to which timely compliance could not be made before the AO. It was the contention of the counsel of the assessee that each & every details are available with the assessee in support of deduction claimed u/s 57 of the IT Act. Under all these circumstances, it was prayed before the bench that one more 57 of the IT Act.
7. LD DR on the other hand supported the order passed by revenue authorities.
8. We have heard Ld. counsels from both the sides & perused the material available on the record. We find that due to unavoidable circumstances the assessee could not reply timely to the notices of hearing. The reason being CETORIE Virus due to which the computer was hacked. Therefore we deem it proper in the interest of justice to provide one more opportunity to the assesse to submit his reply before LD CIT(A)/NFAC in support of grounds of appeal. We therefore set-a-side the ex-parte order passed by LD CIT(A)/NFAC & restore the matter back to him for fresh adjudication on the merits of the case deciding each grounds of appeal after providing reasonable opportunity of hearing to the assesse. LD CIT(A)/NFAC shall pass the order as per fact & Law deciding each ground of appeal by speaking order after providing reasonable opportunity of being heard to the assessee. The assessee is also hereby directed to respond to the notice issued by Ld. CIT(A)/NFAC and submit the requisite details on the appointed date without seeking any adjournment under any pretext, failing which Ld. CIT(A)/NFAC is at liberty to pass appropriate order as