SANDEEP KUMAR GUPTA,HYDERABAD V. DCIT., CIRCLE-2(1), HYDERABAD

ITA 1402/HYD/2024

AI Insights

This case involves an appeal by Shri Sandeep Kumar Gupta against the order of the Learned Commissioner of Income Tax (Appeals), which had dismissed his earlier appeal due to non-compliance with notices. The original dispute arose from an assessment order under sections 143(3) read with section 144B of the Income Tax Act, 1961, for the assessment year 2018-19, passed by the Assessing Officer. The assessee contended that he was not given sufficient opportunity to present explanations or evidence regarding the disallowances made by the Assessing Officer. The Tribunal found merit in the assessee's argument that the principles of natural justice were not adequately followed and thus decided to remand the case back to the CIT(A) for a thorough re-examination on merits.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 28618 (ITAT-HYDERABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-A
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SRINATH SADANALA
• Assessee Lawyers: P. VINOD
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

" आआआआ आआआआआआ आआआआआआ, आआआआआआआआ आआआ IN THE INCOME TAX APPELLATE TRIBUNAL Hyderabad ‘A’ Bench, Hyderabad BEFORE SHRI VIJAY PAL RAO, VICE PRESIDENT AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER आ.अपी.सं /ITA No.1402/Hyd/2024 (निर्धारण वर्ा/Assessment Year:2018-19) Shri Sandeep Kumar Gupta, Hyderabad. PAN:BDEPG3748M Vs. Dy. Commissioner of Income Tax, Circle-2(1), Hyderabad. (Appellant) (Respondent) निर्धाररती द्वधरध/Assessee by: Shri P. Vinod, Advocate रधजस् व द्वधरध/Revenue by: Shri Srinath Sadanala, SR-DR सुिवधई की तधरीख/Date of hearing: 12/03/2025 घोर्णध की तधरीख/Pronouncement: 20/03/2025 आदेश/ORDER PER MADHUSUDAN SAWDIA, A.M. : This appeal is filed by Shri Sandeep Kumar Gupta (“the assessee”), feeling aggrieved by the order passed by the Learned Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi (“Ld. CIT(A)”), dated 09.12.2024 for the A.Y. 2018-19. 2. The assessee has raised the following grounds : ITA No.1402/Hyd/2024 2 3. At the outset, the Ld. AR submitted that the assessee had filed appeal against the order u/s 143(3) r.w.s. 144B of the income tax Act,1961(“ the Act”) dated 20/09/2021, passed by the learned Assessing Officer (“Ld. AO”) before the Ld. CIT(A). However, the assessee did not make any compliances to the notices issued by Ld. CIT(A). Therefore, the Ld. CIT(A) dismissed the appeal of the assessee. 4. Feeling aggrieved with the order of Ld. CIT(A), the assessee is now in appeal before us, contending that the Ld. CIT(A) did not provide sufficient opportunity to the assessee to submit explanations/evidence in support of the disallowances made by the Ld. AO. It is further contended that the Ld. CIT(A) has passed the order without providing proper opportunity. The Ld. AR also submitted that the assessee does not stand to gain by allowing the appeal to be disposed of without any documentary evidence being produced and it is only due to the reasons beyond the control of the assessee, the assessee could not submit the explanations/evidences in support of the additions made by the Ld. AO. By consolidating all ITA No.1402/Hyd/2024 3 the grounds, he further submitted that given an opportunity, the assessee is now ready to produce all such details and conduct the proceedings diligently and get the matter disposed of on merits. 5. Per contra, Ld. DR placed heavy reliance on the orders of the authorities below, and submitted that sufficient opportunity has already been given by the authorities, but the assessee failed to avail the same. He opposed the grant of further opportunity to the assessee. 6. We have heard the rival contentions and also gone through the record in the light of the submissions made on either side. It could be seen from the order of the Ld. CIT(A) that in spite of many opportunities given, the assessee failed to produce the explanations/evidence in support of the additons made by the Ld. AO, which resulted in passing the order without consideration thereof. It is a fact that the assessee does not stand to gain by not producing such documents. Be that as it may, now the assessee is ready to produce all such documentary evidence in support of his contentions and get the matter disposed of on merits. The least that would happen by allowing an opportunity to the assessee is that a cause would be decided on merits. With this view of the matter and considering the principle of natural justice, we are of the view that fresh opportunity should be given to the assessee. Accordingly, we set aside the impugned order and restore the issue to the file of the Ld. CIT(A) for passing a fresh order on merits after affording the opportunity of hearing to the assessee. Grounds of appeal are answered accordingly. ITA No.1402/Hyd/2024 4 7. In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 20th March., 2025. Sd/- Sd/- (VIJAY PAL RAO) (MADHUSUDAN SAWDIA) VICE PRESIDENT ACCOUNTANT MEMBER Hyderabad. Dated: 20.03.2025. * Reddy gp Copy of the Order forwarded to : 1. Shri Sandeep Kumar Gupta, 5-5-35/A/10, Chaitanya Towers, Prashanthi Nagar, Kukatpally, Hyderabad-500072 2. DCIT, Circle-2(1), Hyderabad. 3. Pr. CIT, Hyderabad. 4. DR, ITAT, Hyderabad. 5. Guard File. BY ORDER, "