2018 (1) TMI 583 - AT - Income Tax

Reopening of assessment - no compliance on the part of the assessee to the notices issued by him fixing the said appeals for hearing from time to time - Held that - Non-compliance on the part of the assessee during the course of appellate proceedings before the ld. CIT(Appeals) was for the reasons beyond the control of the assessee and one more opportunity can justifiably be given to the assessee in the interest of justice to put forth its case on merit before the ld. CIT(Appeals). Accordingly set aside the impugned orders passed by the ld. CIT(Appeals) exparte and remit the matter back to him for disposing of the appeals of the assessee afresh on merit after giving one more opportunity of being heard to the assessee. - Decided in favour of assessee for statistical purposes.

Summary

Issues:
Non-compliance with notices issued by the ld. CIT(Appeals) leading to dismissal of appeals filed by the assessee for two separate years under consideration.

Analysis:
The appeals filed by the assessee were directed against two separate orders passed by the ld. Commissioner of Income Tax (Appeals), Burdwan, dismissing the appeals filed by the assessee ex-parte. The assessee, a Society engaged in imparting education, did not file returns of income for the years 2009-10 and 2010-11 under section 139 of the Act. Notices under section 147 were issued by the Assessing Officer as the audited accounts showed income chargeable to tax. The assessee eventually filed its returns of income in 2014, declaring total income for both years. The Assessing Officer determined the total income after making additions for both years, leading to appeals by the assessee before the ld. CIT(Appeals) against the orders passed under section 147/143(3).

The appeals were dismissed by the ld. CIT(Appeals) due to non-compliance by the assessee with the notices issued for hearing. The assessee contended that the non-compliance was due to reasons beyond its control and sought another opportunity to present its case. An affidavit was filed explaining the reasons for non-compliance. The Tribunal, after considering the affidavit, found the non-compliance justified and set aside the exparte orders of the ld. CIT(Appeals). The matter was remitted back to the ld. CIT(Appeals) for fresh disposal, with directions to give the assessee another opportunity to be heard. The Tribunal emphasized the need for the assessee to comply and cooperate during the proceedings before the ld. CIT(Appeals).

Consequently, the Tribunal allowed both appeals of the assessee for statistical purposes, providing relief to the assessee by granting another opportunity to present its case before the ld. CIT(Appeals. The order was pronounced in the open court on a specified date in November 2017.