ZEEL SYNERGY ENGINEERS,SURAT V. INCOME TAX OFFICER, WARD-1(2)(1), SURAT

ITA 637/SRT/2024

AI Insights

The case involves Zeel Synergy Engineers appealing against the order of the National Faceless Appeal Centre (NFAC), which confirmed the ex parte assessment order passed by the Assessing Officer under sections 147 and 144 of the Income Tax Act, 1961. The Assessing Officer had made significant additions to the assessee's income, including Rs. 4.90 Crore related to bank transactions and Rs. 4,21,462 as rental income from plant and machinery. The assessee argued that non-compliance with notices was due to the serious health issues and eventual death of a partner, which the Tribunal considered a reasonable cause for non-compliance. The Tribunal found the CIT(A)'s order to be non-speaking and not in accordance with the mandate of Section 250(6) of the Act, leading to the decision to restore the matter back to the Assessing Officer.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 472209 (ITAT-SURAT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-12-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2014-2015
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RAVIKANT GUPTA
• Assessee Lawyers: P. M. JAGASHETH
• Keywords: Reasonable cause
• Section: 147

Judgement Text

" आयकर अपीलीय अिधकरण, सूरत Ɋायपीठ, सूरत IN THE INCOME TAX APPELLATE TRIBUNAL, SURAT BENCH, SURAT BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER AND SHRI BIJAYANANDA PRUSETH, ACCOUNTANT MEMBER आयकर अपील सं./ITA No. 637/SRT/2024 (AY 2014-15) (Hybrid hearing) Zeel Synergy Engineers 901-902, Vishwakarma Arcade, Ring Road, Majura Gate, Surat- 395 002 [PAN : AAAFZ 8493 L] बनाम Vs Income Tax Officer, Ward- 1(2)(1), Surat, Aaykar Bhawvan, Majura Gate, Surat-395 001 अपीलाथŎ/Appellant ŮȑथŎ /Respondent िनधाŊįरती की ओर से /Assessee by Shri P.M. Jagasheth. CA राजˢ की ओर से /Revenue by Shri Ravi Kant Gupta– CIT-DR अपील पंजीकरण/Appeal instituted on 30.05.2024 सुनवाई की तारीख/Date of hearing 30.12.2024 उद ्घोषणा की तारीख/Date of pronouncement 30.12.2024 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER: 1. This appeal by assessee is directed against the order of National Faceless Appeal Centre, Delhi [for short to as “NFAC/Ld.CIT(A)] dated 06.03.2024 for assessment year (AY) 2014-15, which in turn arises out of assessment order passed by Assessing Officer under section 147 r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) 01.03.2022. 2. Rival submission of both the parties heard and record perused. The Ld. Authorized Representative (Ld.AR) of the assessee submits that Assessing Officer as well as Ld.CIT(A) has passed ex parte orders in making huge additions of Rs.4.90 Crore and addition on transaction in the bank, which is part of regular books of account and addition on account of alleged rental ITA No.637/SRT/2024 (A.Y.14-15) Zeel Synergy Engineers 2 income from renting of plant and machinery of Rs.4,21,462/-. During assessment, the assessee has made compliance and furnished required requisites, however, one or two notices could not be complied with due to bona fide circumstances though assessee furnished certain details still the Assessing Officer passed assessment under section 144 of the Act. The Ld.CIT(A) confirmed the action of Assessing Officer in ex parte proceedings. The Ld. AR of the assessee submits that partner of assessee was suffering cirrhosis of the liver cirrhosis and hypertension and ultimately died on 02.06.2023. The e-mail id [e-mail] in that Form-35 for service of notices as provided who was suffering by cirrhosis of the liver with portal hypertension and was under acute pain and could not take respond in time. The Ld AR of the assessee submits that there is reasonable cause for non-compliance. The Ld. AR of the assessee submits that the Ld. CIT(A) confirmed the action of Assessing Officer by a non- speaking order. The Ld. AR of the assessee submits that one more opportunity may be allowed to assessee to contest its case before Assessing Officer. He undertakes on behalf of assessee to be more vigilant in future and to make compliance in time. He made specific prayer that matter may be restored back to the file of Assessing Officer instead of Ld.CIT(A) to avoid the long drawn procedure of remand report. In that event of filing some evidence or submission. 3. On the other hand, Ld. Commissioner of Income-tax Departmental Representative (Ld. CIT-DR) for the Revenue submits that sufficient opportunities were allowed to assessee by Assessing Officer as well as ITA No.637/SRT/2024 (A.Y.14-15) Zeel Synergy Engineers 3 Ld.CIT(A), thus assessee does not deserve any further opportunity. Even if, the Bench is of the opinion that assessee deserves any further opportunity, matter may be restored back to the file of Assessing Officer with the direction to assessee to be more vigilant and to make proper compliance in time as and when called for. 4. We have considered the rival submissions of both the parties and have gone through order of lower authorities carefully. We find that the Assessing Officer passed assessment order under section 144 for the want of proper compliance. The Assessing Officer made additions of Rs.4.90 Crore on account of transactions in the bank, which is claimed by the assessee part of regular books of accounts. The Assessing Officer also made addition on account of alleged rental income from renting of plant and machinery of Rs.4,21,462/-. The ld CIT(A) confirmed the action of Assessing Officer. Before us, the ld.AR of the assessee has explained that assessee was suffering cirrhosis of the liver cirrhosis and hypertension and ultimately died on 02.06.2023. Considering the peculiar facts of the present case and further in view of the Ld. CIT(A) has dismissed the appeal in ex parte order without discussing the merit of the case. The impugned order passed by ld. CIT(A) is not in accordance with mandate of Section 250(6) of the Act. Therefore, in the interest of justice, we deem it appropriate to restore the appeal back to the file of Assessing Officer to pass the assessment order afresh. Needless to direct that before passing order afresh, the Assessing Officer shall provide reasonable opportunity to the assessee. The assessee is also directed to be more vigilant and to make timely ITA No.637/SRT/2024 (A.Y.14-15) Zeel Synergy Engineers 4 compliance of the notice issued by Assessing Officer. With these directions, the grounds of appeal of assessee is allowed for statistical purposes. 5. In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 30/12/2024. Sd/- Sd/- (BIJAYANANDA PRUSETH) (PAWAN SINGH) लेखा सद˟/Accountant Member Ɋाियक सद˟/Judicial Member सूरत / Surat Dated: 30/12/2024 Dkp Outsourcing Sr.P.S* आदेश की Ůितिलिप अŤेिषत/ Copy of the order forwarded to :  अपीलाथŎ/ The Appellant  ŮȑथŎ/ The Respondent  आयकर आयुƅ/ CIT  िवभागीय Ůितिनिध, आयकर अपीलीय आिधकरण, सूरत/ DR, ITAT, SURAT  गाडŊ फाईल/ Guard File // True Copy // By order/आदेश से, सहायक पंजीकार आयकर अपीलीय अिधकरण, सूरत "