Balaganeswararao Dasari , Palakol V. Income Tax Officer, Ward-1, Palakole

ITA 226/VIZ/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 5063 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 5 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-04-2022
• Appeal Filed By: Assessee
• Order Result: PartlyAllowed
• Bench Allotted: SMC
• Assessment Year: 2017-2018
• Appeal Filed On: 31-10-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3); 250

Judgement Text

आयकर अपीऱीयअधिकरण, विशाखापटणम पीठ, विशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM श्री द ु व्ि ू रु आर एऱ रेड्डी, न्याययक सदस्य एिं श्री एस बाऱाक ृ ष्णन, ऱेखा सदस्य के समक्ष BEFORE SHRI DUVVURU RL REDDY, HON’BLE JUDICIAL MEMBER & SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अऩीऱ सं./ I.T.A. No.226/Viz/2021 (ननधधारण वषा / Assessment Year :2017-18) Balaganeswararao Dasari, D.No.8-10, Chitra Cheruvu Gattuchivara, Palakol-534260. PAN: BOQPD 4127 N Vs. Income Tax Officer, Ward-1, Palakol. (अऩीऱधथी/ Appellant) (प्रत्यथी/ Respondent) अऩीऱधथी की ओर से/ Appellant by : Sri C. Subrahmanyam प्रत्यधथी की ओर से / Respondent by : Sri SPG Mudaliar, Sr. AR स ु नवधई की तधरीख / Date of Hearing : 15/03/2022 घोषणध की तधरीख/Date of Pronouncement : 06/04/2022 O R D E R PER DUVVURU RL REDDY, Judicial Member : This appeal filed by the assessee against the order of the Ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi in DIN & Order No. ITBA/NFAC/S/250/2021-22/1035239033(1), dated 02/09/2021 passed U/s. 143(3) r.w.s 250(6) of the Act for the AY 2017-18. 2 2. The assessee has raised five grounds in his appeal and they are extracted herein below for reference: “1. That under the f acts and circumstances of the case the order passed by C IT(A), NFAC U/s. 250 of the Act dated 2/9/2021 is contr ary to the provisions of the l a w and f acts of the case. 2. the Ld. C IT(A) erred in dismissing the appeal on the ground that the A ssessee did not respond to the notices of hearing, when the f act of the matter is that assessee had f il ed written submissions through e-f il ing portal on 27/07/2021. Theref ore, dismissing the appeal by the Ld. CIT(A) due to al l eged non-compl iance is not acceptabl e. 3. Even if it is to be accepted, without conceding that assessee did not respond to the notice of hearing, the Ld. CIT(A) ought to have decided the issue on merits, instead of dismissing the appeal f or al l eged non-compl iance, theref ore impugned order passed is ag ainst the provisions of l aw. 4. The Ld. C IT(A) by dismissing the appeal , erred in conf irming the additions made by the AO of Rs. 8,13,994/- wi thout considering the f acts and submissions on record. 5. For these and other reasons that are to be urged at the time of hearing of the appeal , the appell ant prays that the order passed by the Ld. C IT (A) is erroneous both on f acts and as wel l as in l aw, theref ore, the same needs to be set aside in the interest of justice.” 3. Before us, at the outset the Ld. AR submitted that in the case of the assessee the Ld. AO passed order U/s. 143(3) of the Act vide order dated 04/12/2019 wherein the Ld. AO made addition of Rs. 8,13,994/- on account of difference in gross receipts as per the P & L Account and as per the statement in Form 26AS. Aggrieved by the order of the Ld. AO, the assessee filed an appeal before the Ld. CIT(A). On appeal, the Ld. CIT (A), National Faceless Appeal Centre (NFAC), Delhi had passed ex-parte order without providing proper opportunity to the assessee of being heard. It was therefore pleaded that the matter may be remitted back to 3 the file of the Ld CIT (A) in order to provide one more opportunity to the assessee of being heard. Ld. DR, on the other hand, vehemently opposed to the submissions of the Ld. AR and argued that sufficient opportunities had been provided to the assessee however, on the given dates of hearing none appeared before the Ld. CIT (A). Therefore the Ld. CIT (A) had no other option but to pass ex-parte order based on the materials available on record. Hence, it was pleaded that the order passed by the Ld. CIT(A) does not call for any interference. 4. We have heard the rival submissions and carefully perused the materials on record. On examining the facts of the case, we find that the Ld. CIT (A), NFAC had posted the case on certain occasions which is apparent at para 4 of the Ld. CIT(A)’s order. However, none appeared on behalf of the assessee before the CIT(A) on the given dates of hearing. Therefore, the Ld. CIT (A) was left with no other option except to adjudicate the appeal ex-parte. In this situation, considering the nature of issues involved in the appeal and the prayer of the Ld. AR, following the principles of natural justice as well as in the interest of justice, we hereby remit the matter back to the file of Ld. CIT (A) in order to consider the appeal afresh on merits by providing one more opportunity to the assessee of being heard. At the same breath, we also hereby caution the assessee to promptly co-operate before the Ld. CIT (A) in the proceedings 4 failing which the Ld. CIT (A) shall be at liberty to pass appropriate order in accordance with law and merits based on the materials on record. It is ordered accordingly. 5. In the result, appeal filed by the assessee is allowed for statistical purposes as indicated hereinabove. Pronounced in the open Court on the 06 th April, 2022. Sd/- Sd/- (एस बाऱाक ृ ष्णन) (द ु व्ि ू रु आर.एऱ रेड्डी) (S.BALAKRISHNAN) (DUVVURU RL REDDY) ऱेखा सदस्य/ACCOUNTANT MEMBER न्याययकसदस्य/JUDICIAL MEMBER Dated : 06.04.2022 OKK - SPS आदेश की प्रतिलिपि अग्रेपिि/Copy of the order forwarded to:- 1. ननधधाररती/ The Assessee– Balaganeswara Rao Dasari, D.No.8-10, Chitra Cheruvu Gattuchivara, Palakol – 534260, Andhra Pradesh. 2. रधजस्व/The Revenue – Income Tax Officer, Ward-1, Income Tax Buildings, Doddipatla Road, Palakol, West Godavari, Andhra Pradesh – 534260. 3. The Principal Commissioner of Income Tax, 4. आयकर आय ु क्त (अऩीऱ)/ The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi. 5. ववभधगीय प्रनतननधध, आयकर अऩीऱीय अधधकरण, ववशधखधऩटणम/ DR, ITAT, Visakhapatnam 6. गधर्ा फ़धईऱ / Guard file आदेशधन ु सधर / BY ORDER Sr. Private Secretary ITAT, Visakhapatnam