SIDDHANATH CHEMICALS INDIA PVT LTD., MUMBAI V. ITO 15(3)(3), MUMBAI

ITA 810/MUM/2020

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 0431 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: 2012-2013
• Appeal Filed On: 30-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Reasonable cause
• Section: 143(3); 143(1); 250; 69A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI PRASHANT MAHARSHI, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA No. 810/Mum/2020 (A.Y: 2012-13) Siddhanath Chemicals India Pvt Ltd Silver Birch, Vasant Garden, Near Swapna Nagari, Mulund West, Mumbai – 400080. Vs. ITO – 15(3)(3) Aayakar Bhavan Mumbai – 400020 ./ज आइआर ./PAN/GIR No. : AAFCS5278N Appellant .. Respondent Appellant by : None Respondent by : Mr.Vivek Upadhay. DR Date of Hearing 10.01.2022 Date of Pronouncement 12.01.2022 आद श / O R D E R PER PAVAN KUMAR GADALE JM: The assessee has filed the appeal against the order of the CIT(A)-24, Mumbai passed u/s 143(3) r.w.s 147 and 250 of the Act. 2. None appeared on behalf of the assessee. We find there is a delay of 26 days in filing of the appeal by the assessee with the Honble Tribunal. The assessee has filed an application for condonation of delay along with the affidavit mentioning the reasonable cause. We are satisfied with the sufficient cause of ITA No. 810/Mum/2020 Siddhanath Chemicals India P ltd, Mumbai. - 2 - delay which is neither willful nor wanton and the Ld.DR has no serious objections. Accordingly, we condoned the delay and admit the appeal. 3. The Brief facts of the case are that, the assessee is engaged in the business of production of ethanol.The assessee has filed the return of income for the A.Y 2012-13 on 28.09.2012 with a total loss of Rs.12,606/- and the return of income was processed u/s 143(1) of the Act. Subsequently, the case reopened u/s 147 of the Act by issuing notice u/s 148of the Act. The assessee has received money in transactions with sundry creditors and the A.O has dealt on the facts .Since the assessee has failed to explain the reasons for receiving the cash on sale of shares, the A.O has made an addition u/s 69A of the Act. Similarly, in respect of the cash deposits, the assessee could not file the explanations and the amount was credited in books of account. The A.O. is of the opinion that it is unexplained money in the hands of the assessee found credited in bank account and accordingly made addition of Rs 39,92,880/- and assessed the total income of Rs.84,68,480/- and passed the order u/s 143(3) r.w.s 147 of the Act dated 25.12.2018. Aggrieved by the order, the assessee has filed an appeal with the CIT(A) and the CIT(A) has confirmed the additions and passed a ex parte order. Aggrieved by the CIT(A) order, the assesee has filed an appeal with the Honble Tribunal. ITA No. 810/Mum/2020 Siddhanath Chemicals India P ltd, Mumbai. - 3 - 4. At the time of hearing, the Ld.DR submitted that the Ld.CIT(A) has passed an ex parte order for non prosecution of appeal by the assessee and supported the order of the CIT(A). 5. We heard the Ld.DR submissions and perused the material on record. Prima-facie the CIT(A) has passed the ex-parte order considering the fact that there is no appearance nor any submissions are filed by the assessee in spite of providing adequate opportunity of hearing. Therefore, the CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. We on perusal of the CIT(A) found that the Ld.CIT(A) has issued the notices of hearing, but there was no response and thus the Ld.CIT(A) came to a conclusion that the assessee is not inclined to prosecute the appeal. 6. We find that the assessee has raised grounds of appeal challenging the additions of the A.O. and there could be various reasons for non appearance which cannot be overruled. We considering the principles of natural justice shall provide one more opportunity of hearing to the assessee to substantiate the case along with evidences and information. Accordingly, we set aside the order of ITA No. 810/Mum/2020 Siddhanath Chemicals India P ltd, Mumbai. - 4 - the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh on merits and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of appeal and allow the grounds of appeal of the assessee for statistical purposes. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 10.01.2022. Sd/- Sd/- (PRASHANT MAHARISHI) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated 10.01.2022 KRK, PS /Copy of the Order forwarded to : 1. / The Appellant 2. / The Respondent. 3. आ र आ / The CIT(A) 4. आ र आ ( ) / Concerned CIT 5. "#$ % & &' , आ र ) र*, हमद द / DR, ITAT, Mumbai 6. % -. / 0 / Guard file. ान ु सार/ BY ORDER, " & //True Copy// 1. ( Asst. Registrar) ITAT, Mumbai