EMGEE HOUSING PRIVATE LIMITED,GOA V. JCIT(A), KANPUR

ITA 273/PAN/2024

AI Insights

Emgee Housing Private Limited appealed against the order of the CIT(A) which had dismissed their earlier appeal due to non-compliance and non-appearance at multiple hearings. The original dispute arose from additions made under sections 22 and 37(1) of the Income Tax Act by the Assessing Officer, which were sustained by the CIT(A). The Tribunal found that the CIT(A) had not adequately considered the reasons for the assessee's non-appearance and decided to provide another opportunity for the assessee to present its case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 32343 (ITAT-PANAJI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: WT(D)
• Assessment Year: 2017-2018
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NAZEERA MOHAMAD.
• Keywords: Set aside; Principle of natural justice
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL PANAJI BENCH PANAJI BEFORE SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER & SHRI G D PADMAHSHALI ACCOUNTANT MEMBER I T A. Nos. 273/PAN/2024 (A.Y. 2017-18 ) Emgee Housing Private Limited, 608, City Center Patto Plaza, Panjim-403001, Goa. Vs . ACIT-Circle 1(1), Aaykar Bhavan, EDC complex, Patto Plaza, Panjim-403001, Goa. PAN .No.AABCE6688E (अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Assessee by None(letter 10-03-25) Revenue by Ms.Nazeera Mohamad.Sr.DR सुनवाई कȧ तारȣख/Date of Hearing 11.03.2025 घोषणा कȧ तारȣख/Date of Pronouncement 17.03.2025 ORDER PER PAVAN KUMAR GADALE, JM: The appeal is filed by the assesse against the order of the Addl/ JCIT(A) Kanpur passed u/sec 143(3) and u/sec 250 of the Act. 2. At the time of hearing, it was found that there is a delay in filing the appeal before the Hon’ble Tribunal and the assesse has filed an affidavit for condonation of delay. Whereas, the facts mentioned in the affidavit are reasonable and sufficient cause was explained and the Ld. DR has no specific objections. Accordingly, we condone the delay and admit the appeal. The assessee has raised 2 ITA. No. 273/PAN/2024 Emgee Housing Private Limited. the grounds of appeal challenging the additions u/sec22 and u/sec37(1) of the Act sustained by the CIT(A). 3. The brief facts of the case are that, the assessee company is engaged in the business of property developers. The assessee has filed the return of income for the A.Y 2017-18 on 31.10.2017 disclosing a total loss of Rs.1,91,68,762/- Subsequently the case was selected for scrutiny under CASS and notice u/sec143(2) and u/sec 142(1) of the Act are issued calling for details in respect of claims and the information supporting the return of income filed. The assesse has filed the details and the Assessing Officer (A.O) has dealt on the submissions/details and was asked the assessee to provide detailed working of closing stock. The A.O found that the assessee has unsold inventory in completed projects and invoked provisions of section 23 of the Act. Further the A.O. was not satisfied with the explanations and dealt on the provisions and judicial decisions and made addition under income from house property of Rs.1,99,08,000/- and also disallowed the expenses u/sec37(1) of the Act of Rs.4,31,468/- and finally assessed the total income of Rs.11,70,706/- and passed the order u/sec 143(3) of the Act dated 25.12.2019. 4. Aggrieved by the order, the assesse has filed an appeal before the CIT(A), whereas the CIT(A) has considered the grounds of appeal, statement of facts and findings of the AO and has issued notices of hearing and since there was 3 ITA. No. 273/PAN/2024 Emgee Housing Private Limited. no compliance by the assesse to notices. Therefore the CIT(A) considering the information on record has dismissed the appeal. Aggrieved by the order of the CIT(A), the assessee has filed an appeal before the Hon'ble Tribunal. 5. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the order considering the fact that there is no compliance nor appearance in spite of providing adequate opportunity of hearing and the notices were issued. Therefore, the CIT(A) was of the opinion that the assesse is not interested in prosecuting the appeal and passed the ex parte order. The CIT(A) has issued the notices of hearing on 26.02.2021,12.07.2021,12.12.2023 &21.06.2024 referred at Para 4 of the order and there was no response and thus the Ld.CIT(A) came to a conclusion that the assesse is not interested and decided the appeal based on the information available on record. Whereas the assesse has raised grounds of appeal challenging the additions made by the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the facts and principles of natural justice, we shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assesse should be provided adequate opportunity of hearing and shall cooperate in 4 ITA. No. 273/PAN/2024 Emgee Housing Private Limited. submitting the information for early disposal of the Appeal. And, we allow the grounds of appeal of the assesse for statistical purpose. 6. In the result, the appeal filed by assessee is allowed for statistical purposes. Order pronounced in the open court on 17.03.2025. Sd/- Sd/- (GD PADMAHSHALI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Panaji Dated: 17/03/2025 Copy of the Order forwarded to: 1. The Appellant, 2. The Respondent 3. The CIT(A)- 4. CIT 5. DR, ITAT, 6. Guard file. //True Copy// BY ORDER, (Asstt. Registrar)ITAT, Panaji 5 ITA. No. 273/PAN/2024 Emgee Housing Private Limited. Date Initial 1. Draft dictated on PS 2. Draft placed before author PS 3. Draft proposed & placed before the second member PS 4. Draft discussed/approved by Second Member. PS 5. Approved Draft comes to the Sr.PS/PS PS 6. Kept for pronouncement on 7. File sent to the Bench Clerk 8. Date on which file goes to the AR 9. Date on which file goes to the Head Clerk. 10. Date of dispatch of Order. 11. Dictation Pad is enclosed "