K.G.SHOE EXPORTS,KANPUR V. .A/DCIT CIRCLE-1(2)(1), KANPUR

ITA 94/LKW/2024

AI Insights

The case involves M/s K. G. Shoe Exports, which appealed against the order of the Commissioner of Income Tax (Appeals) [CIT(A)] for the assessment year 2012-13. The CIT(A) had confirmed the additions made by the Assessing Officer, which increased the assessee's declared income from Rs. 28,15,490 to Rs. 78,19,850. The CIT(A) passed an ex-parte order due to the assessee's non-compliance in appearing or submitting evidence during the hearings. The Tribunal found the CIT(A)'s order to be cryptic and non-speaking, leading to the decision to restore the appeal to the CIT(A) for a decision on merits.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 43556 (ITAT-LUCKNOW)
• Duration Of Justice: 9 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-12-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 21-02-2024
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: REVENUE; SUNIL KUMAR RAJWANSHI
• Assessee Lawyers: ABHINAV MEHROTRA
• Keywords: Set aside; Opportunity of being heard; Non compliance
• Section: 250

Judgement Text

"I.T.A. No.94/Lkw/2024 Assessment Year:2012-13 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI KUL BHARAT, VIDE PRESIDENT SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.94/Lkw/2024 Assessment Year: 2012-13 M/s K. G. Shoe Exports, 79B, Dada Nagar, Kanpur. PAN:AAAFI7911C Vs. Asstt./Dy.C.I.T., Circle-1(2)(1), Kanpur. (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) This appeal has been filed by the assessee for assessment year 2012- 13 against impugned appellate order dated 09/11/2023 (DIN & Order No.ITBA/NFAC/S/250/2023-24/1057849188(1) passed by learned Commissioner of Income Tax (Appeals) [“CIT(A)” for short]. (B) The facts of the case, in brief, are that the assessee is engaged in the business of manufacturing and selling of footwear. The assessee filed its return of income showing an income of Rs.28,15,490/- for the year under consideration. The Assessing Officer completed the assessment at a total income of Rs.78,19,850/- by making various additions. The assessee carried the matter in appeal before the learned CIT(A) who had passed an ex-parte order u/s 250 of the I.T. Act by confirming the additions made by the Assessing Officer on the ground that the assessee has failed to produce Appellant by Shri Abhinav Mehrotra, Advocate Respondent by Shri Sunil Kumar Rajwanshi, Addl. CIT (D.R.) I.T.A. No.94/Lkw/2024 Assessment Year:2012-13 2 any submission/evidence in support of his case. Now the assessee is in appeal before the Income Tax Appellate Tribunal. (B.1) At the time of hearing before us, the learned Counsel for the assessee submitted that learned CIT(A) has not decided the appeal on merits and instead the appeal of the assessee was dismissed taking adverse view of non compliance of notice of hearing issued by him. He further submitted that the issue regarding merits should be restored back to the file of the learned CIT(A) because the learned CIT(A) is duty bound to pass speaking order on merits. The learned Sr. Departmental Representative for Revenue expressed no objection to this. (C) We have heard both sides. We have perused materials on record. We noted that learned CIT(A) has passed ex-parte order as according to him, nobody has appeared on the dates 08/09/2020, 08/02/2021, 11/08/2023 and 16/10/2023 when the appeal was fixed for hearing before him. From the order of CIT(A), it is apparent that the CIT(A) had issued various notices to the assessee however, neither anybody appeared nor filed written submissions and ultimately the CIT(A) passed the ex-parte order. However, looking into the overall facts and circumstances of the case and in the interest of substantial justice, since the order of the learned CIT(A) is cryptic and non-speaking, we deem it appropriate to restore appeal to the file of the learned First Appellate Authority with a direction to adjudicate all the grounds, raised by the assessee before him, on merits in accordance with law after giving proper opportunity of being heard to the assessee. (C.1) In view of the foregoing and as representatives of both sides are in agreement on this; we set aside the impugned appellate order dated 09/11/2023 of the learned CIT(A) and we direct the learned CIT(A) to decide the appeal through denovo order which should be speaking order on merits in accordance with law after providing reasonable opportunity to the I.T.A. No.94/Lkw/2024 Assessment Year:2012-13 3 assessee and ensuring due compliance of requirements u/s 250(6) of the IT Act. (D) In the result, the appeal is partly allowed for statistical purposes. (Order pronounced in the open court on 11/12/2024) Sd/. Sd/. (KUL BHARAT) (ANADEE NATH MISSHRA) Vice President Accountant Member Dated:11/12/2024 *Singh Copy of the order forwarded to : 1. The Appellant 2. The Respondent 3. Concerned CIT 4. The CIT(A) 5. D.R. ITAT, Lucknow Asstt. Registrar "