2022 (7) TMI 1335 - AT - Income Tax

Correctness of the ex-parte orders passed by the learned CIT(A) in the matter of assessment u/s 153C r.w.s 144 - assessee has been given sufficient opportunity of hearing and yet the assessee has not availed the same - HELD THAT - We are of the considered view that having regard to the undertaking given by assessee and having regard to the fact that the assessee was indeed traversing through a very difficult patch of time, we deem it fit and proper to remit the matter to the file of the CIT(A) for adjudication de novo on merits after given one more opportunity of the assessee, in accordance with the law and by of the speaking order. The assessee, however, is cautioned to ensure that at least this time the assessee will duly co-operate and expeditious disposal of the remanded proceedings and scrupulous comply with the notices of hearing. In view of these discussions, as also bearing in mind the entirety of the case, we deem it fit and proper to remit the matter to the file of the CIT(A) for fresh adjudication as above. Appeal allowed for statistical purposes.

Summary

Issues:
- Correctness of the ex-parte orders passed by the learned CIT(A) in the matter of assessment under section 153C r.w.s 144 of the Income Tax Act, 1961 for the assessment years 2008-09, 2010-11 to 2013-14.

Analysis:
1. The judgment involves five appeals related to the same assessee, all concerning a common issue arising from similar facts. The appeals question the accuracy of ex-parte orders dated 30.12.2021 & 23.02.2022 by the CIT(A) regarding assessments under section 153C r.w.s 144 of the Income Tax Act, for the years 2008-09, 2010-11 to 2013-14.

2. During the hearing, the assessee's counsel highlighted that the impugned orders were ex-parte due to the assessee's inability to participate in the proceedings before the CIT(A) because of severe business difficulties. The counsel assured that given another chance, the assessee would comply diligently with the CIT(A)'s notices and ensure a prompt resolution of the appeals on their merits.

3. The Departmental Representative argued that the assessee had sufficient opportunities to participate in the proceedings but failed to do so. However, upon questioning by the bench, the Representative acknowledged that remitting the matter to the CIT(A) for a fresh adjudication would not harm the revenue's interests.

4. After considering the arguments and facts, the Tribunal decided to remit the matter back to the CIT(A) for a de novo adjudication on merits, granting the assessee another opportunity to present its case. The Tribunal emphasized the importance of the assessee's cooperation and compliance with the hearing notices for a swift resolution of the proceedings.

5. Ultimately, the Tribunal allowed all five appeals for statistical purposes, directing the matter to be reconsidered by the CIT(A) in accordance with the law and with a speaking order. This decision was made considering the difficult circumstances faced by the assessee and the assurance of cooperation given during the hearing.

6. The judgment, delivered by the Vice President and Judicial Member, was pronounced in open court on the 19th day of July 2022, indicating a favorable outcome for the assessee in terms of allowing the appeals for statistical purposes and remitting the matter for fresh adjudication.