2012 (8) TMI 1072 - AT - Income Tax

Summary

Issues involved: Appeal against ex-parte order passed by CIT(A) for A.Y. 2007-08.

Summary:
The assessee, engaged in manufacturing and finance, filed a return declaring total income as 'Nil'. The assessment was completed with disallowances resulting in income under normal provisions and book profit u/s 115JB of the Income Tax Act, 1961. The CIT(A) passed an ex-parte order dismissing the appeal due to lack of compliance by the assessee. The assessee challenged this order, claiming insufficient opportunity to be heard. The assessee's counsel submitted that despite requesting an adjournment due to a key person's absence, the CIT(A) passed the order ex-parte. The Department had no objection to setting aside the issue to the CIT(A)'s file. The ITAT found that the CIT(A) provided multiple opportunities for the assessee to be heard, but the last adjournment request was not considered, leading to the ex-parte decision. Citing a Rajasthan High Court decision, the ITAT concluded that the assessee had a valid reason for adjournment and set aside the CIT(A)'s order, directing a fresh decision with proper opportunity for the assessee to be heard. The appeal was partly allowed for statistical purposes.

The ITAT Mumbai, comprising Shri Dinesh Kumar Agarwal (J.M.) and Shri Rajendra Singh (A.M.), pronounced the order on 10-8-2012.