What did the Tribunal hold?

The Tribunal found that the notices might have been sent to an incorrect address, leading to the assessee's non-representation. Therefore, the impugned order was set aside to provide the assessee with a fair opportunity to be heard.

The assessee's appeal before the CIT(A) was dismissed ex parte due to non-representation. The assessee claimed they did not receive the notices, and the address used by the CIT(A) differed from the one provided by the assessee.

What were the issues?

Whether the CIT(A) erred in passing an ex parte order without proper service of notice on the assessee, and whether the assessee was given a reasonable opportunity of being heard.

M/S Agni Bio Power Energy Pvt… vs ITO | ITAT Chandigarh 2018

Income Tax Appellate Tribunal, DIVISION BENCHES ‘A’, CHANDIGARH

Before: MS. DIVA SINGH & SHRI B.R.R.KUMAR

For Appellant: Shri Sushil

For Respondent: Smt Chander Kanta, Addl. CIT

Hearing: 06.02.2018Pronounced: 13.03.2018

PER DIVA SINGH, JM

The present appeal has been filed by the assessee assailing the correctness of the order dated 08.06.2017 of CIT(A)-2 Gurgaon pertaining to 2012-13 assessment on various grounds, however, the parties were heard only in respect of ground Nos. 1 to 3 which read as under : 1 . On the facts and circumstances of the case and in law, the C1T(A) erred in passing an ex parte order and confirming all the adhoc disallowances made by the AO. 2. On the facts and circumstances of the case and in law, the CIT(A) erred in stating that the appellant has not responded to the notices issued by the them and further erred in stating that the appellant is not interested in appeal. 3. On the facts and circumstances of the case and in law, the CIT(A) erred in considering the fact that out of three notices mentioned by the CIT(A) in its order; the appellant has only received one notice which was duly responded by the appellant.

The relevant facts of the case are that the assessee's return was picked up for scrutiny assessment wherein certain additions were made by the AO by way of disallowing expenses. These were challenged in appeal before the CIT(A). However, the appeal was dismissed on account of non-representation o n the part of the assessee. A perusal of para 2 shows that from the three notices stated to have been issued, only notice dated 12.05.2017 is stated to have been served/not received back. The ld. AR addressing the above grounds stated that he has been instructed to state that none of the notices were received by the assessee. We notice

ITA 1482/CHD/2017. A.Y. 2012-13 Page 2 of 2

from the record that in the Memo of Appeal filed before the ITAT, the assessee has given the following address in column No. 10 which requires the assessee to indicate where notices may be sent by the ITAT :

M/s Agni Bio Power Energy P.Ltd., 344, Tower B-2, Spaze I-Tech Park, Sector 49, Sohna Road, Gurgaon-122018.

2.1 It is seen that the address mentioned in the impugned order in column No. 4 on the other hand is as under :

M/s Agni Bio Power Energy P.Ltd., Plot No. 625, Indl. Area, Phase-9, Mohali.

2.2. Accordingly, it appears that the notices may have been sent by the CIT(A) at the address available on record. Presumably the correct address was not updated by the assessee on account of which fact the assessee remained unrepresented. Notwithstanding the fact that the duty and responsibility to bring the correct address on record rests with the assessee, however, in the interests of the substantial justice, we deem it appropriate to set aside the impugned order back to the file of the CIT(A) with the direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. The opportunity so provided, it is hoped is not abused by the assessee and the assessee participates fully and fairly in the proceedings before the CIT(A). It is made clear that in the eventuality of abuse of the same, the CIT(A) would be at liberty to pass an order in accordance with law on the basis of material on record. 3. In the result, the appeal of the assessee is allowed for statistical purposes. Order pronounced in the Open Court on 13.03. 2018.

Sd/- Sd/- ( Dr.B.R.KUMAR) ( DIVA SINGH) ACCOUNTANT MEMBER JUDICIAL MEMBER ‘Poonam’ Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR

Asstt. Registrar ITAT,Chandigarh.

M/S AGNI BIO POWER ENERGY PVT. LTD.,MOHALI vs. ITO, W-6(1), MOHALI

What did the Tribunal hold?

What were the facts?

What were the issues?

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