Tribunal overturns CIT(A) order, directs fresh decision on tax assessment, grants parties opportunity to present cases.

The Tribunal set aside the CIT(A)'s order confirming the addition of Rs. 26,48,346 in an ex-parte assessment under section 144 of the I.T. Act, 1961. The Tribunal found the CIT(A) had not adequately discussed the merits and directed a fresh decision, granting both the assessee and the Assessing Officer opportunities to present their cases. The Tribunal dismissed the stay application as in fructuous, accepting the assessee's appeal for statistical purposes.

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Issues involved: Challenge against ex-parte assessment order u/s 144 of the I.T. Act, 1961 and addition of Rs. 26,48,346.

Ex-parte Assessment Order u/s 144:
The assessee failed to attend multiple hearings despite opportunities given, leading to the ex-parte assessment order. The CIT(A) confirmed the order, stating that the Assessing Officer had no choice due to the assessee's non-compliance. The CIT(A) upheld the additions made under various heads, noting the absence of necessary details and evidence from the assessee during assessment proceedings.

Confirmation of Addition:
The assessee challenged the confirmation of addition of Rs. 26,48,346. The appeal was found defective due to a delay of 23 days in filing. The assessee sought condonation of delay, citing medical reasons for the delay. The Tribunal accepted the condonation petition and admitted the appeal for hearing. Despite the assessee's absence during the appeal hearing, the Tribunal proceeded to decide the appeal ex-parte. The Ld.DR supported the CIT(A)'s order, arguing that the assessee had a history of default. However, the Tribunal found that the CIT(A) had merely confirmed the Assessing Officer's order without proper discussion on merits. Therefore, the Tribunal set aside the CIT(A)'s order and directed a fresh decision after providing opportunities to both the assessee and the Assessing Officer.

Stay Application:
The assessee had also filed a stay application, which became irrelevant after the main appeal decision. The Tribunal dismissed the stay application as in fructuous. Consequently, the appeal of the assessee was accepted for statistical purposes, and the stay application was dismissed.

Conclusion:
The Tribunal set aside the CIT(A)'s order and directed a fresh decision on the appeal. The stay application was dismissed as in fructuous.

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