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2024 (8) TMI 525 - AT - Income TaxEx-parte order passed by CIT(A) - HELD THAT - CIT(A) has passed the order considering the fact that there is no appearance in spite of providing adequate opportunity of hearing and the notices were issued. CIT(A) was of the opinion that the assessee is not interested in prosecuting the appeal and dismissed the appeal ex-parte confirming the action of the assessing officer. CIT(A) has issued the notices of hearing of the order, but there was no response and thus the CIT(A) came to a conclusion that the assessee is not interested and decided the appeal based on the information available on record. Whereas the assessee has raised grounds of appeal challenging the additions of the A.O and there could be various reasons for non appearance which cannot be overruled. Therefore, considering the principles of natural justice shall provide with one more opportunity of hearing to the assessee to substantiate the case with evidences and information. Accordingly, we set aside the order of the CIT(A) and remit the entire disputed issues to the file of the CIT(A) to adjudicate afresh and the assessee should be provided adequate opportunity of hearing and shall cooperate in submitting the information for early disposal of the appeal.Appeal of the assessee for statistical purposes.
Issues Involved:
Appeals against ex-parte orders of CIT(A) under Income Tax Act, 1951 for A.Y 2019-20, Disallowance of depreciation on Trademark, Disallowance under section 14A r.w.r 8D, Non-appearance of assessee before CIT(A), Request for additional opportunity of hearing. Analysis: 1. Appeals against ex-parte orders of CIT(A): The appeals were filed by the assessee against separate ex-parte orders of the Commissioner of Income Tax (Appeals). The Tribunal decided to club the appeals as the issues were common and interlinked. The lead case was taken as ITA No. 3181/Mum/2023 for A.Y 2019-20. The assessee raised various grounds of appeal challenging the decisions of the CIT(A). 2. Disallowance of depreciation on Trademark: The assessing officer disallowed depreciation of Rs. 1,68,42,855 on Trademark made by the assessee without appreciating the valuation report of a Registered Valuer. The CIT(A) confirmed this disallowance. The assessee contended that the valuation was done as per the Income Approach in the Technical Guide on Valuation and that the depreciation had been allowed in the preceding assessment year. The Tribunal remitted this issue back to the CIT(A for fresh adjudication. 3. Disallowance under section 14A r.w.r 8D: The assessing officer made a disallowance of Rs. 26,80,542 under section 14A r.w.r 8D while calculating the Book Profit under section 115JB of the Income Tax Act, 1961. The CIT(A) confirmed this addition. The Tribunal observed that no adjustment can be made in the book profit under section 115JB for items not specifically mentioned in the explanation to the section. This issue was also remitted back to the CIT(A for fresh adjudication. 4. Non-appearance of assessee before CIT(A): The CIT(A dismissed the appeal ex-parte as there was no compliance by the assessee to the notices of hearing. The Tribunal noted that the CIT(A) decided the appeal based on the information available on record due to the non-appearance of the assessee. However, considering the principles of natural justice, the Tribunal set aside the order of the CIT(A) and remitted the disputed issues back to the CIT(A) for fresh adjudication, providing the assessee with another opportunity to present their case. 5. Request for additional opportunity of hearing: The assessee requested an opportunity to explain before the lower authorities, stating that they had a good case on merits. The Tribunal, after considering the submissions and lack of appearance before the CIT(A, decided to provide the assessee with another chance to substantiate their case with evidences and information, emphasizing the importance of natural justice. In conclusion, the Tribunal allowed the appeals filed by the assessee for statistical purposes, remitting the disputed issues back to the CIT(A) for fresh adjudication with the direction to provide adequate opportunity of hearing for the assessee.
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