2013 (4) TMI 317 - AT - Income Tax

Undisclosed income - search and seizure - assessment completed ex-parte u/s 144 as the assessee neither filed its return in response to notice issued u/s 158BC nor appeared in the assessment proceedings - Held that - As it is evident from the impugned order of the CIT(A) that the appeal was disposed of ex-parte as the assessee did not avail the various opportunities afforded by the CIT(A) by granting adjournments as requested by the assessee however, the assessee has prayed for one more opportunity for putting forth the case of the assessee in relation to various issues involved in the appeal before the CIT(A) for proper adjudication of the matter. Considering the totality of facts and circumstances of the case and the prayer of the assessee for one more opportunity it is just and proper to set aside the impugned order of CIT(A) and restore the matter to his file for disposal of the appeal of the assessee before him.

Summary

Issues:
1. Delay in filing the appeal
2. Ex-parte assessment by the Assessing Officer
3. Dismissal of the appeal by the CIT(A)
4. Request for one more opportunity to represent the case before the CIT(A)

Delay in filing the appeal:
The appeal was filed by the assessee against the order of the CIT(A) for the block period from 1997-98 to 2002-03. The Appellate Tribunal noted a delay of 56 days in filing the appeal but considered the explanation provided by the assessee regarding the cause of delay. The Tribunal decided to condone the delay and admitted the appeal for adjudication.

Ex-parte assessment by the Assessing Officer:
The assessee, engaged in chit fund business, faced a search and seizure operation resulting in an ex-parte assessment under section 144 for undisclosed income. The assessment was challenged before the CIT(A) after an initial appeal. The matter was remitted back to the Assessing Officer by the Income-tax Appellate Tribunal for fresh assessment, which again led to an ex-parte assessment due to the assessee's non-appearance.

Dismissal of the appeal by the CIT(A):
The CIT(A) dismissed the appeal ex-parte as the assessee did not furnish any evidence to contest the findings of the Assessing Officer. The assessee, being aggrieved by this decision, appealed to the Appellate Tribunal raising multiple grounds. The Tribunal considered the submissions of both parties and decided to set aside the CIT(A)'s order, directing a fresh disposal of the appeal by the CIT(A) on all issues after affording a reasonable opportunity of hearing to the assessee.

Request for one more opportunity to represent the case before the CIT(A):
The assessee's counsel requested another chance to present the case before the CIT(A) due to genuine difficulties faced earlier. The Departmental Representative did not object to this request. The Tribunal, after considering the facts and circumstances, granted the request and directed the CIT(A) to dispose of the appeal afresh, emphasizing the need for cooperation from the assessee. The Tribunal allowed the appeal for statistical purposes, as the matter was remitted back to the CIT(A) for further proceedings.