TaxTMI 
TaxTMI 
2025 (6) TMI 1043
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....communicated on Email. The order passed by the CIT(A) without proper service of notice is invalid and deserves to be quashed. 2. On the facts and in the circumstances of the case, the Learned CIT(A) has erred in sustaining the order of the A.O. where in the A.O. has erred in making disallowance of Rs. 51,01,228/- u/s 14A r.w.r 8D of the Income Tax Act,. The disallowance made by the A.O. and confirmed by CIT(A) is unjustified, unwarranted and uncalled for and deserves to be deleted. 3. On the facts and circumstances of the case, the Learned CIT(A) has erred in sustaining the order of the A.O. where in the A.O. has erred in making addition of Rs. 2,35,260/- of agricultural income considering it as bogus,. The addition made by the A.O. and confirmed by CIT(A) is unjustified, unwarranted and uncalled for and deserves to be deleted. 4. The assessee reserves the right to add, amend or alter any grounds of appeal at any time of hearing. 3. Brief facts of the case are that the assessee is a Company, had filed its Return of Income on 13.10.2017 for the Assessment Year 2017-18, declaring total income at Rs. 1,57,10,410/-. Later, the case of assessee was selected....
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....ally filing it but effectively pursuing it" 4.2 The Delhi Tribunal in CIT vs. Multiplan India Pvt. Ltd. as reported in 38 ITD 320 (Delhi) when faced with a similar situation of non-persuasion of appeal', dismissed the appeal of revenue. 4.3 In view of these facts, I am of the opinion that no interference is called for in the AO's assessment order and therefore, the grounds of appeal are dismissed. 5. In result, the appeal of the appellant is hereby dismissed. 5. Being aggrieved with the aforesaid order of Ld. CIT(A), assessee preferred an appeal before us, which in under consideration herein. 6. At the threshold of hearing, it is observed that the order passed by the Ld. CIT(A) is an ex-parte order, moreover, there was no deliberation on the merits and facts of the issues raised in the appeal by the Ld. CIT(A) taking into consideration the material and facts available on record, which was incumbent upon him to do so. 7. Under the aforesaid facts and circumstances, we are of the considered view that the matter needs to be restored back to the file of Ld. CIT(A) without adverting to the ground of appeal raised by the assessee in the present....
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....of the considered view that the Income tax Act is within the ambit of welfare legislation which are completely different from that of the penal legislation, therefore, benefit of doubt whenever arises, it has to be interpreted in favour of the assessee tax payer within the parameters of law and facts. There may be circumstances beyond control of the assessee because of which, the assessee may not have been able to represent his case on the given dates of hearing before the Ld. CIT(Appeals). Though it is correct that there was no compliance from the side of the assessee, however, nothing is there on record which suggests any deliberate non-compliance or malafide conduct of the assessee. That further, if one final opportunity is provided to the assessee to represent his case before the first appellate authority, the position of the revenue will also not be jeopardized. 9. Recently, the Hon'ble High Court of Bombay in the case of Vijay Shrinivasrao Kulkarni Vs. Income-tax Appellate Tribunal (2025) 171 taxmann.com 696 (Bom.), dated 04.02.2025 observed that in the case the Assessing Officer had passed an ex-parte order and when the matter went on appeal before the Ld. CIT(Appea....
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....ound to give a proper decision on question of fact as well as law, which can only be done if the appeal is disposed off on merits and not dismissed owing to the absence of the appellant. Reverting to the facts of the present case the grounds of appeal were simply filed before the Ld.CIT(Appeals) they were not substantiated or corroborated through submissions and filing of documentary evidences since the assessee had not complied before the Ld.CIT(Appeals) on the dates of hearing. Therefore, as per framework of the Act there must be adjudication on merits by the first appellate authority and one final opportunity be provided to the assessee to represent his matter on merits in the interest of natural justice. 12. There may even be a situation where the Ld. Counsel for the assessee may assail a legal ground before the Tribunal following the decision of the Hon'ble Supreme Court in the case of National Thermal Power Company Ltd. Ltd. Vs. CIT (1998) 229 ITR 383 (SC) with a contention that irrespective of the order of the Ld. CIT(Appeals) being ex-parte, the Tribunal may decide the legal issue that has been raised by the Ld. Counsel. In our view, the decision of the Hon'ble Sup....
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....n ex-parte order by the Ld. CIT(Appeals), in such scenario, as per the scheme of the Act and following the principles of natural justice, the only course of action is to remand the matter back to the file of the Ld. CIT(Appeals) for adjudication on merits providing one final opportunity to the assessee. 13. In view thereof, we set aside the respective orders of the Ld. CIT(Appeals) for all the years and remand the same to their file for denovo adjudication on merits. At the same time, we direct the assessee that this being the final opportunity, there must be compliance on merits before the first appellate authority. Needless to say, the Ld. CIT(Appeals) shall provide reasonable opportunity of being heard to the assessee and pass an order in terms of Section 250(4) and (6) of the Act within three months from receipt of this order." 9. It is to further be noted that as in the present case, there was no adjudication on merits by the Ld. CIT(A) on that count also, the matter deserves to be set aside for denovo adjudication by the First Appellate Authority. This aspect has been delt with and a judgment has been delivered by the Hon'ble Mumbai High Court in the case of CIT v....