UNITED EDUPRENEUR PRIVATE LIMITED,GANDHINAGAR vs. THE INCOME TAX OFFICER, WARD-1(1), AHMEDABAD
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Income Tax Appellate Tribunal, AHMEDABAD “SMC” BENCH, AHMEDABAD
Before: Ms. SUCHITRA KAMBLE
ITA No.570/Ahd/2022 Assessment Year: 2018-19 Page 1 of 3
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “SMC” BENCH, AHMEDABAD
BEFORE Ms. SUCHITRA KAMBLE, JUDICIAL MEMBER
ITA No.570/Ahd/2022 Assessment Year: 201819
United Edupreneur Pvt. Ltd., Income Tax Officer, 431-B, Supermall-1, Ward – 1(1), Sector-1, Ahmedabad. Infocity, Vs. Gandhinagar - 382 007. (Gujarat) [PAN – AABCU 3141 L] (Appellant) (Respondent) Assessee by Ms. Amrin Pathan, AR Revenue by Shri Ramesh Kumar, Sr. DR Date of Hearing 14.08.2024 Date of Pronouncement 29.08.2024
O R D E R This appeal is filed by the assessee against order dated 21.10.2022 passed by the CIT(A), National Faceless Appeal Centre (NFAC), Delhi for the Assessment Year 2018-19.
The assessee has raised the following grounds of appeal :-
“1. As per applicability of Section 69C and observation made by various ITAT, Hon’ble High Courts and Hon’ble Supreme Court, it is very clear that disallowance made by respected CIT merely on the base of non- compliance of notice issued to third parties u/s.133(6) is bad in law and assessment order passed in that reference is invalid and need to be quashed.
On the base of above grounds, penalty proceedings-initiated u/s.274 r.w.s. 271(1)(c) deserves to be stopped.”
The case of the assessee was selected for complete scrutiny assessment in respect of business expenses. The assessee company is engaged in the business of education-based services and products, tour operator service like planning holidays
ITA No.570/Ahd/2022 Assessment Year: 2018-19 Page 2 of 3
and tours, fabrics and clothings etc. The assessee filed return of income for Assessment Year 2018-19 on 19.10.2018 declaring total income at Rs.2,31,340/-. The return was processed under Section 143(1) of the Income Tax Act, 1961 on 24.02.2019. Reason for selectin of case for scrutiny assessment was “large commission expense and low net profit”. Accordingly, notice under Section 143(2) of the Act was issued on 23.09.2019 and subsequently notice under Section 142(1) of the Act alongwith relevant questionnaire. The assessee filed details such as Profit and Loss Account, Balance Sheet etc. The Assessing officer observed that the assessee has shown turnover of Rs.1,23,98,240/- on which it has claimed commission expenses of Rs.48,92,450/-. The party-wise details of commission expenses were called for. Since the assessee has not responded notices, the Assessing Officer made addition Rs.9,00,400/- under Section 69C of the Act on account of Commission paid and treated the same as unexplained.
Being aggrieved by the Assessment Order, the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee.
The Ld. AR submitted that the CIT(A) passed ex-parte order without giving opportunity to the assessee. The Ld. AR further submitted that since the assessee has not received the notices through e-mail, the matter was heard ex-parte, therefore, the Ld. AR prayed that the matter may be remanded back to the file of the CIT(A) for fresh adjudication on merits.
The Ld. DR relied upon the Assessment Order and the order of the CIT(A).
Heard both the parties and perused all the relevant material available on record. It is pertinent to note that the details given by the assessee before the Assessing Officer was noted in paragraph no.3 of the Assessment Order but, after perusal of the Assessment Order, the Assessing Officer has not taken cognisance of the same. Besides this, the CIT(A) also passed ex-parte order without mentioning whether the notices were served to the assessee or not. Therefore, it will be appropriate to remand back this matter to the file of the CIT(A) for proper adjudication of the issue on merit, after taking cognisance of the evidences filed by the assessee before the Tribunal.
ITA No.570/Ahd/2022 Assessment Year: 2018-19 Page 3 of 3
Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice.
In the result, appeal of the assessee is partly allowed for statistical purpose.
Order pronounced in the open Court on this 29th August, 2024.
Sd/- (SUCHITRA KAMBLE) Judicial Member Ahmedabad, the 29th day of August, 2024 PBN/* Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File
By order UE COPY
Assistant Registrar Income Tax Appellate Tribunal Ahmedabad benches, Ahmedabad
