THE KESRI UNION FARMERS SERVICE COOPERATIVE SOCIETY LIMITED,AMBALA vs. INCOME TAX OFFICER, WARD-4, AMBALA, AMBALA
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Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘SMC’, CHANDIGARH
Before: DR KRINWANT SAHAY & SHRI PARESH M. JOSHI
आदेश/Order Per Dr. Krinwant Sahay, A.M.:
Appeal in this case has been filed by the Assessee against the order dated 22.09.2023 of the ld. Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi.
Grounds of appeal taken by the Assessee are as under: - 1. That the learned CIT(A) NFAC Delhi has erred in law and on facts in dismissing the appeal on ex-parte basis without providing adequate opportunity of being heard.
688-Chd-2023 – The Kesri Union Farmers Service Cooperative Society Limited, Ambala 2
That the learned CIT(A) has erred in law and on facts in dismissing the appeal in so far as it relates to rejection of the audited books of accounts u/s 145 and completion of the assessment u/s 144 of the Act.
That the learned CIT(A) has erred in law and on facts in dismissing the appeal in so far as it relates to estimation of the business income by the AO at 10 percent of gross receipts.
That the learned CIT(A) has erred in law and on facts in dismissing the appeal in so far as it relates to denial of the deduction u/s 80P of the Act.
That the learned CIT(A) has erred in law and on facts in dismissing the appeal in so far as it relates to additions of Rs. 20,20,582/- being made on basis of suspicions and without considering facts of the matter.
That the learned CIT(A) has erred in law and on facts in dismissing the appeal in so fax as it relates reopening of the assessment proceedings for AY 2018-19 u/'s 148.
That the appellant craves leave to add, alter, amend or to substitute the above ground(s) of appeal either before or at the time of hearing of case. 3. During the proceedings before us, the ld. Counsel of the Assessee submitted that the ld. CIT(A) has passed an ex-parte order in this case without discussing anything on merit. Also, during the
688-Chd-2023 – The Kesri Union Farmers Service Cooperative Society Limited, Ambala 3 course of hearing before us, the Counsel of the Assessee has filed an Affidavit on this issue in which he has mentioned as under: - “1. That as per facts, assessment order u/s 144B r.w. 147 was passed by NFAC in case of assessee society on 24.03.2023 and an appeal was filed against the same on 25.04.2023 before the CIT(A) NFAC.
That since the staff of the society is limited and not trained in income tax litigation, assessee had hired the services of CA Lalit Garg for the purpose of pursuing the appeal. The hearing notices u/s 250 were issued by Id CIT(A) in the month of August and September and communication received via SMS were forwarded to counsel to check the portal and take appropriate action.
That the society was under the impression that necessary compliance was made by the counsel.
That however on 22.09.2023, order of CITA was received by assessee wherein appeal was dismissed ex-parte due to non filing of replies and upon confronting the same to counsel, he informed that he had been occupied with audit report filings in Aug- Sep 2023 and thus inadvertently missed the SMS forwarded to him and thus reply to the notices were not filed.
That therefore ex-parte dismissal of the appeal had only taken place due to above mentioned circumstances and there was no ill intention in the same.
688-Chd-2023 – The Kesri Union Farmers Service Cooperative Society Limited, Ambala 4 6. That assessee has immediately taken corrective action and filed appeal before the Hon'ble ITAT Chandigarh and is sanguine of substantial relief.”
The ld. DR relied on the order of the CIT(A).
We have considered the order passed by the CIT(A) in this case and we find that despite being an ex-parte order, the Commissioner of Income Tax (Appeal) has not touched upon any issue on merit nor he has discussed and given any findings on any issue raised before him in the appeal on merit. Therefore, keeping in view the principles of natural justice, the case is restored back to the file of the ld. CIT(A) for adjudication afresh on merits, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly.
In the result, the appeal of the Assessee is allowed for statistical purposes.
Order pronounced on 29.07.2024. Sd/- Sd/- (PARESH M. JOSHI) (DR KRINWANT SAHAY) Judicial Member Accountant Member
688-Chd-2023 – The Kesri Union Farmers Service Cooperative Society Limited, Ambala 5 “आर.के.” आदेश क� ��त�ल�प अ�े�षत / Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar
