VASUDHA SHELTERS,VIJAYAWADA vs. ASSIATANT COMMISSIONER OF INCOME TAX, CIRCLE-1(1), VIJAYAWADA

Brief facts of the case are that the assessee, engaged in the business of civil construction, filed it’s return of income for the A.Y.2010-11 admitting total income of Rs.23,79,162/-. Assessment u/s 143(3) of the Act was completed on 28.01.2013, determining the total income at 9% of the gross turnover as net profit and after allowing remuneration to partners, the income was assessed at Rs.45,65,564/-. The assessment order passed by the AO was considered as erroneous in so far as it was prejudicial to the interest of revenue. Hence, case was reopened u/s 263 of the Act by the then jurisdictional CIT and order u/s 143(3) r.w.s. 263 of the Act was passed on 21.03.2018 assessing the total income at Rs.53,11,776/-. Aggrieved, the assessee preferred an appeal before the Tribunal and pleaded the Ld.CIT(A) to adjourn till the disposal of the said appeal by the Tribunal. The Tribunal passed order vide ITA 137/Viz/2015 and 417/Viz/2018 dated 15.06.2022 for the A.Y.2010-11. Hence, the Ld.CIT(A) held that the reply of the assessee is incorrect as the assessee’s appeal before the Tribunal was disposed off and the assessee was allowed for withdrawal of the appeal as pleaded by the assessee, which was not brought to the notice of the Ld.CIT(A). The assessee’s case 228/Viz/2023, A.Y. 2010-11 M/s Vasudha Shelters, Vijayawada was posted for hearing on various occasions before the Ld.CIT(A), but the assessee did not comply with the notices. Hence, the Ld.CIT(A) dismissed the appeal of the assessee holding that the assessee is not interested in pursuing the appeal and not having any documents / explanation and evidence in support of grounds of appeal raised and thus has not discharged the onus to prove the genuineness of transactions / addition made by the AO.

Aggrieved by the order of the Ld.CIT(A), the assessee preferred an appeal before the Tribunal by raising the following grounds of appeal :

Per contra, the Ld.DR contended that the assessee failed to furnish material evidences or documents or even written submissions before the appellate authorities despite many opportunities were being given to the assessee. He, therefore, pleaded to uphold the order passed by the Ld.CIT(A) and dismiss the appeal of the assessee.

We have heard both the parties and perused the material available on record. As is evident, the Ld.CIT(A) dismissed the appeal of the assessee ex-parte as there was no response from the assessee for various notices issued with proper material evidences and the assessee sought adjournments even after the disposal of assessee’s appeal before the 228/Viz/2023, A.Y. 2010-11 M/s Vasudha Shelters, Vijayawada Tribunal. However, keeping in view the principles of natural justice, we are inclined to remit the matter back to the file of the Ld.CIT(A) with a direction to dispose of these appeals on merits by affording one more opportunity of being heard to the assessee to substantiate it’s case with proper evidences. The assessee is also directed to adhere to the notices issued by the revenue authorities with relevant material evidences. Accordingly, all the grounds filed by the assessee are allowed for statistical purpose.

In the result, appeals of the assessee are allowed for statistical purpose.