2022 (9) TMI 711 - AT - Income Tax

Ex-parte orders by CIT-A u/s 250 - Assessment u/s 144 - GP estimation - Whether CIT-A as grossly erred in law in disposing off the appeal of the appellant ex-parte without providing the appellant a proper and meaningful opportunity of being heard which is in violation of the principles of natural justice and hence unsustainable in law ? - HELD THAT - We find that before the lower authorities the assessee did not appear and, therefore, the authorities had no option, except to pass ex-parte orders under section 144 of the I.T. Act, 1961 basing on the material available with them. However, when the appeal is filed before the Tribunal by the assessee himself against the orders of the lower authorities, it is expected that the assessee may put forth some documentary evidences in support of his contentions to decide the appeal as it is the duty of the assessee to lead evidence in support of its claim and for the adjudicating authority to decide upon the sustainability of the claim on the basis of the evidence led by the parties before it. Assessee did not appear before the Tribunal despite numerous adjournments allowed and notices issued through RPAD. In case of any change of address, it is for the assessee to file revised Form No.36 duly mentioning the new address as the notice issued by the Registry was returned unserved with the postal remark Incomplete address . No material has been placed by assessee to controvert the findings of lower authorities. In this view of the matter and in absence of any contrary material brought on record to rebut the findings of lower authorities, we find no reason to interfere with the order of CIT(A) and thus we dismiss the grounds of the assessee.

Summary

Issues:
1. Assessment order passed under section 144 of the Income Tax Act, 1961.
2. Dismissal of appeal by Ld. CIT(A) due to non-appearance of the assessee.
3. Additions made by AO on various counts.
4. Upholding of AO's order by CIT(A).
5. Assessee's appeal before the Tribunal.

Assessment Order under Section 144:
The assessee, an individual, filed the return of income for A.Y. 2008-09 but did not provide the required details to the Assessing Officer (AO) during the scrutiny assessment. Consequently, the AO computed the total income at Rs.4,79,03,090/-, making additions to the declared income of Rs.4,46,210/-. The AO passed the assessment order under section 144 of the Income Tax Act, 1961.

Dismissal of Appeal by Ld. CIT(A):
The assessee appealed to the Ld. CIT(A) who dismissed the appeal, noting that the notices were returned undelivered, and no explanations or supporting documents were provided regarding creditors and expenses. The Ld. CIT(A) upheld the AO's order based on the lack of cooperation and evidence from the assessee.

Additions Made by AO:
The AO made additions on various counts, including enhancing the Gross Profit (G.P.) rate and disallowing expenses due to the absence of supporting documents. The AO also noted discrepancies in the sale and purchase figures, leading to adjustments in the income calculation.

Upholding of AO's Order by CIT(A):
The CIT(A) upheld the AO's order, emphasizing the non-cooperation of the assessee and the absence of evidence to support the claims made. The CIT(A) affirmed the additions made by the AO, citing the failure of the assessee to provide necessary documentation.

Assessee's Appeal Before the Tribunal:
The assessee raised multiple grounds in the appeal before the Tribunal, challenging the assessment, the ex-parte disposal of the appeal by CIT(A), and various additions to the income by the AO. Despite opportunities granted, the assessee did not appear before the Tribunal, leading to the dismissal of the appeal due to lack of evidence and non-cooperation.

In conclusion, the Tribunal dismissed the assessee's appeal, citing the lack of appearance, non-cooperation, and failure to provide necessary evidence throughout the proceedings. The Tribunal upheld the orders of the lower authorities, emphasizing the importance of presenting evidence to support claims and address discrepancies in income calculations.