Adarsh Automobiles, Pune V. Income-tax Officer, Ward - 7(3), Pune

MA 62/PUN/2022

AI Insights

The case revolves around M/s. Adarsha Automobiles, which faced an addition of Rs. 10,00,000 to its income for the Assessment Year 2013-14, categorized as unexplained deposits. The Income Tax Appellate Tribunal had initially dismissed the appeal due to the absence of the assessee at the hearing, attributed to non-receipt of the notice. The assessee filed a Miscellaneous Application citing the non-receipt of the notice and argued that the addition was not applicable for the Assessment Year 2013-14 as the deposit was recorded in the previous financial year. The Tribunal, upon reviewing the affidavit and circumstances presented, decided to recall the ex parte order and scheduled a new hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 124085 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 6 month(s) 28 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 26-02-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 16-02-2023
• Assessment Year: 2013-2014
• Appeal Filed On: 30-07-2020
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Onus to prove

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SINGLE MEMBER CASE PUNE BEFORE SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER AND SHRI G.D. PADMAHSHALI, ACCOUNTANT MEMBER M.A. No. 62/PUN/2022 Arising out of ITA No. 1360/PUN/2018 : A.Y. 2013-14 M/s. Adarsha Automobiles, 46/3 Pune Nagar Road, Wadgaon Sheri, Pune-411 014 PAN: AABFA 8949 F Applicant Vs. The Income-tax Officer, Ward 7(3), Pune. Respondent Applicant by : Shri Abhay Avchat Respondent by : Shri Ramnath P. Murkunde Date of Hearing : 17-02-2023 Date of Pronouncement : 27-02-2023 ORDER PER SHRI PARTHA SARATHI CHAUDHURY, JUDICIAL MEMBER This Misc. application preferred by the assessee emanates from order of the Tribunal in I.T.A. No. 1360//PUN/2018 for A.Y. 2013-14, order dated 13-01-2019. The assessee has taken the following grounds in its Misc. application. 1. The assessee, M/s. Adarsh Automobiles had preferred an appeal to the Income Tax Appellate Tribunal, against an order under section 254, dated May 18 th 2018 passed by the Commissioner of Income Tax (Appeals) .; 8, Pune for the Assessment Year 2013-14. 2. An order of the Income Tax Appellate Tribunal, ·SMC" Bench Pune, dated January 31 st 2019 has been passed in respect of the aforesaid appeal by the tribunal. The appeal has been dismissed reason provided for the decision is as under – "We have heard the submissions made by the ld. DR and have perused the documents available on record. The addition of Rs. 10,00,000/- has been made by the Assessing Officer and confirmed by the Commissioner of Income Tax (Appeals)primarily on the ground that the assessee has failed to discharge his onus to prove genuineness of party from whom the alleged security deposit has been received. The assessee has failed to furnish details of party such as address, PAN, etc. The assessee has further failed to furnish confirmation from M/s. Rajat Construction from whom the assessee has allegedly received amount of Rs. 10,00,000/- as security deposit against purchase of diesel, fuel, etc. In the absence of any supporting evidence substantiating 2 M.A. No. 62/PUN/2022 Adarsha Automobiles A.Y. 2013-14 the receipt of security deposit and the genuineness of the party giving deposit, we do not find any infirmity in the impugned order. Therefore, the same is upheld and the appeal of assessee is dismissed being devoid of any merit. 3. However, The Assessee has not received any notice of the date of hearing and therefore, the Assessee or Assessee's consultant was unable to attend the hearing on the scheduled date. The assessee does not desire to overlook its responsibilities towards appeals or such other matters. 4. It will be appreciated that the assessee has appeared for various hearings before various authorities. The only reason for non-attendance for the hearing held on 21-01-2019 was, non-receipt of notice to Assessee. 5. Further, the asseseee states that addition of Rs.10,00,000/- has been made during Assessment Year 2013-14 in respects of deposits that appear as opening balance in the books of accounts for the Previous Year, relevant year 2013-14. The deposit has been accepted in prior period viz. Financial Year 2007-08. Therefore under provisions of law addition of unexplained deposit, in the Assessment Year 2013-14 is not possible. This aspect of the addition has not been considered. 6. The assessee therefore, sincerely requests the Honorable Tribunal to restore the appeal and grant an opportunity of being heard to the assessee.” 2. We have perused the contents of Misc. application in ITA No. 1360/PUN/2018. The Tribunal has passed an ex parte order. At para 2 of the Tribunal’s order, it is mentioned that the notice was sent to the assessee under the registered post but it was returned back with postal remarks “refused”. Thereafter, it was held that it appears the assessee was not keen to pursue and defend the appeal. Resultantly, the Tribunal proceeded to consider the materials available on record with the assistance of ld. D.R. 3. Along with the Misc. application, the assessee has filed an affidavit dated 8- 2-2023 sworn in before the Notary Public, Government of India, wherein at para 6 it is stated as follows: “The notice of hearing was not received by us nor by our authorized representative. The address mentioned in record/appeal form is of the Petrol Pump run by firm in the area of Pune Nagar Rod, Wadgaon sheri. The post-delivery office named Dunkirk Lines in our area is located at the area where post office is located comes under jurisdiction of Airport authority of India since the area is near to the Pune International airport having restricted access.” 4. It is contended that the notice of hearing was not received by the assessee nor by his authorized representative. We have perused the entire contents of the affidavit and we observe that the assessee has filed an affidavit submitting non- 3 M.A. No. 62/PUN/2022 Adarsha Automobiles A.Y. 2013-14 receipt of hearing notice and other circumstances, which are not deliberate or intentional on the part of the assessee and ultimately, the assessee was unable to be present for hearing before the Tribunal which resulted in the ex parte order. Considering the totality of facts an circumstances we recall our ex parte order and provide one more opportunity to the assessee to represent its case on merits before the Tribunal. The date of hearing shall be notified to the parties herein. 5. In the result, the Misc. application is allowed. Order pronounced in the open court on this 27 TH day of Feb. 2023. Sd/- sd/- (G.D. PADMAHSHALI) (PARTHA SARATHI CHAUDHURY) ACCOUNTANT MEMBER JUDICIAL MEMBER Pune; Dated, the 27 th day of February 2023. Ankam Copy of the Order forwarded to : 1. The Appellant. 2. The Respondent. 3. The CIT(A)-8, pune 4. The Pr. CIT- 4 Pune 5. D.R.SMC Bench 5. Guard File BY ORDER, Sr. Private Secretary ITAT, Pune. /// TRUE COPY /// 4 M.A. No. 62/PUN/2022 Adarsha Automobiles A.Y. 2013-14 Date 1 Draft dictated on 20-02-2023 Sr.PS 2 Draft placed before author 27-02-2023 Sr.PS 3 Draft proposed and placed before the second Member JM/AM 4 Draft discussed/approved by second Member AM/JM 5 Approved draft comes to the Sr. PS/PS Sr.PS/PS 6 Kept for pronouncement on 27-02-2023 Sr.PS/PS 7 Date of uploading of order 27-02-2023 Sr.PS/PS 8 File sent to Bench Clerk 27-02-2023 Sr.PS/PS 9 Date on which the file goes to the Head Clerk 10 Date on which file goes to the A.R 11 Date of dispatch of order