2014 (3) TMI 290 - AT - Income Tax

Exparte order Quantum addition Power of CIT(A) - Held that - CIT(A) who after giving opportunity to the assessee dismissed the appeal of the assessee by passing an ex-parte order as assessee did not avail the opportunities provided by the CIT(A) during remand also, CIT(A) again gave several opportunities to the assessee to present his case, but the assessee neither appeared personally nor through his authorized representative - assessee has failed to appear despite the fact that notice for hearing was duly served upon her, it appears that she does not have anything to support the grounds taken by her thus, there is no need to interfere with the order passed by CIT(A) and the same is hereby upheld.

Summary

Issues Involved:
1. ITA No. 861/Ahd/2011: Quantum addition confirmed by Ld. CIT(A).
2. ITA No. 862/Ahd/2011: Penalty imposed under section 271(1)(c) on the quantum addition.

ITA No. 861/Ahd/2011:
The case involved the confirmation of a quantum addition by the Ld. CIT(A) in two appeals related to the same assessee. The appellant raised multiple grounds of appeal, including issues with the dismissal of the appeal, financial crisis, and the rejection of documents by the Income Tax Officer. The AO added a substantial amount to the assessee's income due to unsatisfactory explanations and documents provided regarding loans/deposits from various creditors. Despite opportunities provided, the assessee failed to appear before the authorities, leading to the dismissal of the appeal by the Ld. CIT(A). The Hon'ble ITAT directed the Ld. CIT(A) to pass a speaking order after providing further opportunities to the assessee, but the assessee continued to be non-compliant. Consequently, the order of the Ld. CIT(A) was upheld by the ITAT due to the assessee's persistent non-appearance and lack of supporting evidence.

ITA No. 862/Ahd/2011:
This appeal focused on the penalty imposed under section 271(1)(c) on the quantum addition made under section 68 of the Act. The AO levied a penalty, which was confirmed by the Ld. CIT(A) after the assessee failed to participate in the proceedings despite multiple opportunities. The matter was sent back to the Ld. CIT(A) by the Hon'ble ITAT for fresh adjudication, but the assessee continued to neglect appearing before the authorities. Consequently, the penalty imposed by the AO was upheld by the Ld. CIT(A) and subsequently by the ITAT due to the assessee's consistent non-compliance and lack of supporting grounds.

In both cases, the appeals filed by the assessee were dismissed due to the failure to appear before the authorities and provide necessary evidence or arguments to support the grounds raised. The non-appearance of the assessee despite the service of notices led to the upholding of the orders passed by the Ld. CIT(A) in both the quantum addition and penalty imposition matters. The ITAT, in a consolidated order, affirmed the decisions of the lower authorities, emphasizing the importance of participation and substantiation of claims in legal proceedings.