M/s. Abhilasha Marmo Grani Pvt. Ltd. , Rajsamand V. ITO, Ward-1, Rajsamand

ITA 530/JODH/2018

AI Insights

The case involves M/s. Abhilasha Marmo Grani Pvt. Ltd., the appellant, contesting an order from the CIT(A)-1, Udaipur, which upheld an assessment order under sections 143(3)/147 of the Income Tax Act, 1961, and confirmed an addition of INR 25,00,000 as unexplained credit under section 68. The appellant argued that the CIT(A) had dismissed their appeal ex-parte without a meaningful opportunity to present their case, citing medical exigencies that prevented their representative from attending the hearings. The Tribunal, considering the circumstances and the principles of natural justice, decided to set aside the CIT(A)'s order and remand the case for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113013 (ITAT-JODHPUR)
• Duration Of Justice: 4 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-03-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 21-03-2023
• Assessment Year: 2007-2008
• Appeal Filed On: 27-11-2018
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Unexplained cash credit; Principle of natural justice; Reasonable cause; Set aside
• Section: 148; 143(1)

Judgement Text

1 | Page IN THE INCOME TAX APPELLATE TRIBUNAL JODHPUR BENCH, JODHPUR BEFORE SHRI KUL BHARAT, JUDICIAL MEMBER SHRI MANISH BORAD, ACCOUNTANT MEMBER ITA No.530/Jodh/2018 (ASSESSMENT YEAR- 2007-08) M/s. Abhilasha Marmo Grani Pvt.Ltd., Tasol Road, Pasoond, Distt.-Rajsamand. Rajasthan-313333 ITO, Ward-1. Rajsamand, Distt.Rajsamand. (Appellant) (Respondent) PAN No. AADCA5286G Assessee By Shri Rakesh Lodha, CA Revenue By Shri S.M.Joshi, JCIT DR Date of hearing 22/03/2023 Date of Pronouncement 23/03/2023 O R D E R PER KUL BHARAT, J.M.: The present appeal filed by the assessee for the assessment year 2007-08 is directed against the order of Ld. CIT(A)-1, Udaipur dated 03.08.2018. The assessee has raised following grounds of appeal:- 1. “The Ld CIT (A)-1, Udaipur without providing a meaningful opportunity rejected an appeal as none attendant. 2. The Ld CIT(A)-1, Udaipur erred in upholding the assessment order u/s 143(3)/147 as valid and is not bad in law, illegal and against the principle of natural justice. 2 | Page 3. The Ld CIT A-1, Udaipur further erred in upholding addition of Rs. 25,00,000/- on account of unexplained credit u/s 68. 4. The appellant craves leave to add, alter, amend, modify and/or delete all or any of the grounds of the appeal on or before the final hearing, if necessary.” 2. Facts giving rise to the present appeal are that the assessee had filed its return of income at INR NIL on 26.10.2007. The case was processed u/s 143(1) of the Income Tax Act, 1961 (“the Act”) on 28.01.2009. Thereafter, the case was re-opened on the basis of accommodation entry related to share capital and share premium u/s 147 of the Act. The Assessing Officer (“AO”) after issuing the statutory notices to the assessee and after considering the submissions of the assessee, made addition of Rs.25,00,000/- u/s 68 of the Act. 3. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A) who after considering the submissions, giving various opportunities to the assessee, he passed the impugned ex-parte order to the assessee. 4. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 5. Apropos to grounds of appeal, Ld. Counsel for the assessee reiterated the submissions as made in the written submission. He 3 | Page submitted that due to certain medical exigency, Ld. Authorized Representative of the assessee could not appear before Ld.CIT(A). Therefore, there was reasonable cause for non-appearance before Ld.CIT(A). He submitted that in the interest of principle of natural justice, the assessee may be given opportunity to represent its case. 6. On the other hand, Ld. JCIT DR opposed these submissions and supported the order of Assessing authority. 7. We have heard Ld. Authorized Representatives of the parties and perused the material available on record and gone through the orders of the authorities below. Apropos to grounds of appeal, Ld.AR for the assessee has stated as under:- “That the Ld CIT(A)-1, Udaipur has passed an ex-party order fixing the date of hearing on 30-09-2018 for the AY 2007-08. She has claimed that the notices were issued to the AR and on non appearance an ex-party order was passed without determining issues raised during the course of assessment before the assessing officer like non passing of speaking order by the assessing officer on the primary objection raised by the appellant against the invoking provisions of section 148 of the Act, not allowing cross examination of the persons whose statements were used against the appellant for making addition to the declared income etc. The Ld CIT(A)-1, Udaipur has just dismissed the appeal of the appellant on the ground that he failed to put in appearance on 4 | Page the date of hearing fixed on 27-02-2018, 27-03-2018 & 22-06- 2018. On enquire from the AR he has submitted that, he has inadvertently missed to submit an application for adjournment prior to went to Ahmedabad for urgent medical assistance in family, so, he failed to appear before him. It is respectfully submitted that in the interest of justice, one more opportunity may be kindly be granted to the appellant by restore the matter back to the file of the Ld. CIT(A) for decision afresh. It is further stated that, I will fully co-operate with the Commissioner of Income Tax (Appeals)-1, Udaipur and also submit before him/her all the details and documents, required for disposing of the case without failing at even first date of hearing.” 8. The Revenue has not disputed the fact that Ld.CIT(A) has passed an ex-parte order. It is stated by the Ld.AR of the assessee that non-appearance before Ld.CIT(A) was not done deliberately and it was on account of medical exigency in the family of Ld.AR. Therefore, considering the submission made at Bar, we are of the considered view that in the interest of substantive justice and interest of principle of justice, the assessee should be granted an opportunity to represent its case before the First Appellate Authority. We therefore, set aside the impugned order and restore the grounds of appeal to the file of Ld.CIT(A). Grounds raised by the assessee are thus, allowed for statistical purposes. 5 | Page 9. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open Court on 23/03/2023. Sd/- Sd/- (MANISH BORAD) (KUL BHARAT) ACCOUNTANT MEMBER JUDICIAL MEMBER *Amit Kumar* Copy to: 1. The Appellant 2. The Respondent 3. The CIT 4. The CIT(A) 5. The DR 6. Guard File Asstt. Registrar Jodhpur Bench