2024 (11) TMI 885 - AT - Income Tax

Disallowance of business expenses - Assessee by filing first appeal before the Ld. Commissioner challenged the disallowance of expenses, however, as it appears from the impugned order the Assessee not responded to the various notices sent by the Ld. Commissioner and therefore in the constrained circumstances having left no option dismissed the appeal of the Assessee - HELD THAT - We observe that though the Ld. Commissioner has written in the impugned order that multiple opportunities of being heard by way of issuing of hearing notices were given to the Assessee, however, from the order it nowhere appears by which mode and on which dates the notices were sent to the Assessee. Even otherwise we observe that the Ld. Commissioner did not pass the order on merits, hence for the just decision of the case and for the ends of substantial justice, we are inclined to remand the instant case to the file of the Ld. Commissioner for decision afresh on merits, suffice to say by affording reasonable opportunity to the assessee to substantiate its claim before the Ld. Commissioner. We also direct the assessee to cooperate with the appellate proceedings and to file the relevant submissions/documents which would be essential and required by the Ld. Commissioner for proper adjudication of the case. We clarify that in case of further default the assessee shall not be entitled for any leniency. Hence, the case is remanded accordingly. Appeal filed by the assessee stands allowed for statistical purposes.

Summary

The Assessee appealed against the order by National Faceless Appeal Center for A.Y. 2010-11. Assessing Officer disallowed business expenses, leading to income adjustment. Assessee's appeal dismissed due to non-response to notices. Appellate Tribunal remanded the case for fresh decision by Ld. Commissioner, directing cooperation from Assessee. Appeal allowed for statistical purposes. (Appellate Tribunal ITAT Mumbai, TMI citation, 31.07.2024)