Appeal Dismissed for Improper Verification by Representative; Fresh Appeal Possible Within 30 Days.

The Tribunal dismissed the assessee's appeal due to improper verification of the appeal memo in Form 36, as mandated by Rule 47(1) of the Income Tax Rules, 1962. The appeal was invalid since it was verified by the Authorized Representative instead of the Managing Director. The assessee may file a fresh appeal within 30 days.

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Issues:
Validity of ex-parte assessment order due to lack of proper notice and incorrect entity name, sustainability of addition on alleged bogus accommodation entries, verification of appeal memo in form 36.

Analysis:
1. The appeal was against an order by the Commissioner of Income Tax (Appeal) for A.Y. 2012-13. The assessee challenged the ex-parte assessment order, arguing it was invalid due to lack of proper notice and being in the name of a different entity. The AO reopened the assessment based on information from a search and seizure action, proposing an addition of Rs. 25,00,000 on share capital. The AO proceeded with assessment under section 144 due to no response from the assessee, which was upheld by the CIT(A).

2. Before the Tribunal, the AR argued on various points, including the validity of the assessment order being in the name of a different entity. The DR contended that it was a best judgment assessment due to lack of response from the assessee, who failed to provide evidence regarding the share capital from a tainted entity.

3. The Tribunal noted that the appeal memo in form 36 was not verified as required by Rule 47(1) of the Income Tax Rules, 1962. The form should be signed by the person authorized to verify the return of income under section 140, typically the Managing Director of a company. However, in this case, the form was verified by the Authorized Representative (CA) of the assessee company, not the Managing Director or Director. As per the rules, this rendered the appeal invalid, and it was dismissed. The assessee was given the option to file a fresh valid appeal within 30 days.

4. Therefore, the Tribunal dismissed the appeal of the assessee due to the lack of proper verification of the appeal memo in form 36, as required by the Income Tax Rules. The decision highlighted the importance of compliance with procedural requirements in tax appeals to maintain their validity and enforceability.

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