SALOCHAN BIR SINGH,LUDHIANA vs. DCIT, CC-1, LUDHIANA
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Income Tax Appellate Tribunal, CHANDIGARH
Before: SHRI A.D.JAIN & SHRI KRINWANT SAHAY
आदेश/ORDER
PER A.D.JAIN, VICE PRESIDENT
This is assessee's appeal for assessment year 2019-20
against the order dated 31.08.2023 passed by the ld. CIT(A)-
5, Ludhiana [in short ‘the CIT(A)].
The facts of the case are that the assessee is a
manufacturer of lifts. The assessee filed its return of income
on 31.10.2019 declaring income of Rs.11,28,970/-. The case
was selected under manual scrutiny as per CBDT guidelines
ITA 657/CHD/2023 A.Y. 2019-20 2 and statutory notice u/s 143(2) of the Income Tax Act, 1961 was
issued on 29.09.2020 electronically on the ITBA Portal.
Thereafter, notice u/s 142(1) of the Act dated 09.09.2021
alongwith detailed questionnaire, was issued to the assessee
electronically. Vide questionnaire, the assessee was required to
furnish detailed explanation and to produce the invoices/bills
viz-a-vis the stock for the valuation of remaining items of the
stock inventory prepared during the survey conducted on
30.08.2018. In response, the assessee furnished the reply. The
Assessing Officer was not satisfied with the reply/information
submitted by the assessee and accordingly, the Assessing Officer
assessed the income of the assessee at Rs.21,76,480/-, against
which the assessee went in appeal before the ld. CIT(A).
Before the ld. CIT(A), as stated in the impugned order,
the assessee was issued as many as ten notices on ITBA
Portal for the hearings fixed on 25.05.2022, 22.06.2022,
08.09.2022,04.11.2022,25.11.2022,19.12.2022, 11.01.2023,
19.04.2023, 29.05.2023 and 31.07.2023, but the assessee
did not respond to any of the notices issued by the ld.
CIT(A). Accordingly, the ld. CIT(A) passed ex-parte order
against the assessee and dismissed the appeal of the
assessee.
ITA 657/CHD/2023 A.Y. 2019-20 3 4. Aggrieved, the assessee is in appeal before this
Tribunal.
We have heard the parties and have perused the
material on record. A perusal of the record shows that the
assessee was issued a number of notices by the ld. CIT(A) on
ITBA Portal. The ld. Counsel for the assessee has submitted
that the notices were not viewed by the assessee as the
assessee was not aware of issuance of any such notice and
further, that the Counsel of the assessee was changed. The
ld. Counsel for the assessee has stated that in some notices,
including last notice, adjournment was sought, but the ld.
CIT(A) dismissed the appeal for non-appearance. The ld.
Counsel for the assessee has requested that the impugned
order of the ld. CIT(A) be set aside and the assessee be
given appropriate opportunity of being heard to present its
case.
5.1 It is noticed that the assessee was issued many
notices on ITBA Portal by the ld. CIT(A) for filing
submissions and supporting documents. The matter now
stands covered by the decision of the Hon'ble jurisdictional
High Court in the case of ‘Munjal BSU Centre of Innovation
ITA 657/CHD/2023 A.Y. 2019-20 4 and Entrepreneurship, Ludhiana through its authorized
signatory Shri Bharat Goyal Vs Commissioner of Income Tax
(E), Chandigarh’, in CWP 21028-2023 (O&M), wherein, vide
order dated 04.03.2024, their Lordships have held that the
provisions of Section 282(1) of the Income Tax Act and Rule
127(1) of the Income Tax Rules, 1962, envisage that it is
essential that before any action is taken, a communication of
the notice must be in terms of these provisions; that these
provisions do not make mention of communication to be
“deemed” by placing the notice on the e-portal of the
Department; that an pragmatic view has always to be
adopted in these circumstances; that an individual or a
company is not expected to keep the e-portal of the
Department open all the times so as to have knowledge of
what the Department is supposed to be doing with regard to
the submissions of forms, etc.; and that the principles of
natural justice are inherent in the Income Tax provisions
and the same are required to be necessarily followed.
5.2 Considering all the facts and circumstances of the
case and in the interest of justice, the appeal is restored
to the file of ld. CIT(A) to decide the matter afresh in
accordance with law after giving reasonable opportunity of
ITA 657/CHD/2023 A.Y. 2019-20 5
being heard to the assessee. The assessee, no doubt, shall
cooperate in the fresh proceedings before the ld. CIT(A).
In the result, the appeal of the assessee is allowed for
statistical purposes.
Order pronounced in the Open Court on 11.06.2024.
Sd/- Sd/-
(KRINWANT SAHAY) (A.D.JAIN ) ACCOUNTANT MEMBER VICE PRESIDENT “Poonam” आदेश क� �ितिलिप अ�ेिषत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�/ CIT 4. िवभागीय �ितिनिध, आयकर अपीलीय आिधकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar
