2023 (12) TMI 632 - AT - Income Tax

Appeal of the assessee ex-parte decided by CIT(A) - non compliance of the notices issued and not furnishing the documentary evidences - Addition of unexplained credits u/s 68 - HELD THAT - Since the impugned order of the ld. CIT (A) was passed ex parte for non compliance of the notices issued and not furnishing the documentary evidences, by upholding the assessment order passed under section 143(3) read with section 147 of the IT Act, whereby the AO made addition on account of unexplained credits under section 68, therefore, in the totality of facts and circumstances of the case and in the interest of justice, we are of the view that it will be reasonable to provide one more opportunity to the assessee. We, thus, set aside the ex-parte order of the ld. CIT (A) and restore the matter back to the file of the ld. CIT (A) for fresh adjudication after providing a reasonable opportunity of being heard to the assessee. The assessee is granted one more opportunity to represent his case before the ld. CIT (A) and directed to file necessary documents/evidences as required by the ld. CIT (A). In case the assessee fails to appear before the ld. CIT (A), he may decide the appeal on the basis of the material available on record.Appeal of the assessee is allowed for statistical purposes.

Summary

Issues involved:
The judgment involves issues related to jurisdiction of action under section 147, condonation of delay in filing appeal, ex-parte orders by CIT (A), addition made under section 68 of the IT Act, levy of interest under sections 234B and 234C, and non-compliance with notices and submission of documents.

Issue 1: Jurisdiction of action under section 147
The appellant challenged the action taken under section 147 as being without jurisdiction and void ab-initio. The notice issued under section 148 was also contested as being time-barred. The Tribunal found that the delay of two days in filing the appeal was adequately explained by the appellant and thus condoned the delay.

Issue 2: Ex-parte orders by CIT (A)
The appellant contended that the CIT (A) passed the impugned orders ex-parte without providing adequate opportunity to be heard and without deciding on the merits of the case. The Tribunal observed that the appellant failed to comply with various notices and furnish required documents, leading to the ex-parte orders. However, in the interest of justice, the Tribunal set aside the ex-parte orders and directed the matter to be restored back to the CIT (A) for fresh adjudication after providing a reasonable opportunity to the appellant.

Issue 3: Addition under section 68 of the IT Act
The appellant disputed the addition made under section 68 on account of unexplained credits received from a trading company. The Tribunal noted that the appellant failed to produce relevant details to support its grounds during the appellate proceedings, leading to the dismissal of the appeal by the CIT (A). However, the Tribunal granted the appellant one more opportunity to represent its case before the CIT (A) and provide necessary documents and evidence.

Issue 4: Levy of interest under sections 234B and 234C
The appellant contested the levy of interest under sections 234B and 234C by the Assessing Officer. The Tribunal found that the levy of interest was contrary to the provisions of law and facts of the case. Consequently, the Tribunal directed the deletion of the interest levied in full.

Separate Judgment:
In a separate appeal for assessment year 2016-17, similar issues were raised regarding ex-parte orders by the CIT (A), disallowances made by the AO, and levy of interest under section 234D. The Tribunal found the grounds similar to the previous appeal and set aside the ex-parte order of the CIT (A) to allow the appellant another opportunity to present its case with necessary documents and evidence.

This comprehensive summary highlights the key issues and outcomes of the judgment while preserving the legal terminology and significant details from the original text.