2021 (4) TMI 1126 - AT - Income Tax

Ex-parte order u/s. 144 of the Act without providing proper opportunity to the assessee of being heard and made certain additions - HELD THAT - As find merit in the submissions of the Ld. DR. AO had posted the case on several occasions. However, none appeared on behalf of the assessee before the Ld. AO on the given dates of hearing and even before the Ld. CIT(A) the assessee could not improve his case. Hence, the Ld. Revenue Authorities were left with no other option except to pass orders based on the material available on record. No much strength in the arguments advanced by the ld. AR. However, considering the prayer and the submissions of the Ld. AR and the nature of issues involved in the appeal, in the interest of justice, hereby remit the matter back to the file of Ld. AO for de-novo consideration thereby providing one more opportunity to the assessee of being heard. At the same breath, I also hereby caution the assessee to promptly co-operate before the Ld. Revenue Authorities in their proceedings failing which the Ld. Revenue Authorities shall be at liberty to pass appropriate Orders in accordance with law and merits based on the materials on the record. It is ordered accordingly.

Summary

Issues:
1. Quantum appeal related to assessment for A.Y. 2014-15
2. Penalty appeal against levy under Section 271A

Quantum Appeal (ITA No. 1737/Hyd/2019):
The assessee appealed against the orders of the Ld. CIT(A)-7, Hyderabad, challenging the assessment completed ex-parte under Section 144 of the Act. The appellant disputed the additions made by the Assessing Officer, particularly regarding income determination and commission income addition. The Ld. AR argued that the assessee was not given proper opportunity to be heard, while the Ld. DR contended that adequate chances were provided, but the assessee failed to appear or substantiate claims. The Tribunal found merit in the Ld. DR's submissions, noting the absence of the assessee during hearings. Despite this, in the interest of justice, the matter was remitted back to the Ld. AO for fresh consideration, emphasizing the need for the assessee's cooperation. The appeal was allowed for statistical purposes.

Penalty Appeal (ITA No. 1738/Hyd/2019):
The primary issue in this appeal was the penalty imposed under Section 271A of the Act. As the quantum appeal was remitted back to the Ld. AO for reconsideration, this penalty appeal was also sent back for fresh adjudication based on the outcome of the quantum appeal. Both appeals of the assessee were allowed for statistical purposes. The judgment was pronounced on 9th April 2021 by A. Mohan Alankamony, Member (A), with representation from A. Kiran Manohar for the Appellant and Sanjeev Bhapat for the Respondents.