2024 (8) TMI 112 - AT - Income Tax

Tribunal Overturns Dismissal; Orders Fresh Review of Case by Assessing Officer with Consideration of Evidence.

The Tribunal set aside the CIT(A)'s order, which dismissed the appeal on non-compliance grounds, and remanded the case to the Assessing Officer for de ... CIT(A) dismissed the appeal filed by the assessee ex parte - assessee has failed to comply with the notices issued for hearing - HELD THAT:- We find that the assessee filed the written submissions on 17/11/2021, 05/11/2022, and 08/05/2023. From the perusal of the written submission filed on 08/05/2023, we find that the assessee also filed various documents/supporting evidence before the learned CIT(A). However, as evident from the perusal of the impugned order, CIT(A) without considering any of these written submissions/documents, and, inter alia, by placing reliance upon the decision of B.N. Bhattacharya [1979 (5) TMI 4 - SUPREME COURT] dismissed the appeal filed by the assessee, without adjudicating the grounds of appeal raised by the assessee on merits. From the perusal of the assessment order we find that AO concluded the assessment on best judgment basis u/s 144 in absence of complete details being filed by the assessee. In view of the above, we are of the considered opinion that in the interest of justice, the assessee be granted one more opportunity to represent its case on merits before the AO. Appeal by the assessee is allowed for statistical purposes. Issues:Appeal challenging order passed by Commissioner of Income Tax (Appeals) for assessment year 2011-12. Dismissal of appeal by CIT(A) on non-compliance grounds. Assessment concluded by Assessing Officer on best judgment basis.Analysis:The appeal was filed challenging the order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2011-12. The assessee raised multiple grounds in the appeal, including issues related to notice u/s. 142(1), treatment of cash deposits, and passing of an ex-parte order by the Assessing Officer. The appeal was dismissed by the CIT(A) on the basis of non-compliance with notices issued for hearing. The CIT(A) did not consider written submissions and documents filed by the assessee, leading to the dismissal of the appeal without adjudicating on the merits of the grounds raised. The Assessing Officer had concluded the assessment on a best judgment basis due to incomplete details submitted by the assessee.During the hearing, it was noted that the assessee had filed written submissions on multiple occasions, along with supporting evidence, which were not considered by the CIT(A). The Tribunal found that the CIT(A) had dismissed the appeal without considering the written submissions and documents provided by the assessee. The Tribunal referred to a Supreme Court decision and granted the assessee another opportunity to represent its case on merits before the Assessing Officer. The Tribunal set aside the impugned order and directed the assessee to furnish all details and submissions in support of its claim for de novo adjudication by the Assessing Officer. The Tribunal emphasized that no order should be passed without affording a reasonable opportunity of hearing to the assessee. As the matter was being restored to the AO for fresh adjudication, other grievances raised by the assessee were not addressed at that stage, and the grounds raised by the assessee were allowed for statistical purposes.In conclusion, the appeal by the assessee was allowed for statistical purposes, and the matter was remanded back to the Assessing Officer for fresh adjudication, with directions to consider all details and submissions provided by the assessee.