2021 (5) TMI 184 - AT - Income Tax

Ex-parte order - assessment as completed u/sec. 143(3) - HELD THAT - In the instant case no doubt, the Ld. CIT(A) has given sufficient opportunities to the assessee and Ld. assessee did not respond to the notices given by the Ld. CIT(A), hence we do not appreciate the attitude of the assessee in not complying with the statutory notices. We, observe from the order of the Ld. CIT(A) that she has not passed the detailed speaking order considering all the facts mentioned in the statement of facts and the grounds of appeal. Though the Ld. CIT(A) is permitted to pass the ex-parte order, the same should be after considering the facts and merits of the case. Therefore, in the interest of justice, we, remit the matter back to the file of the ld. CIT(A) with a direction to decide the appeal afresh on merits after giving opportunity of hearing to the assessee. The assessee is directed to comply with the notices and cooperate with the department and submit the necessary details for disposal of appeal before the Ld. CIT(A). Accordingly, appeal of the assessee is allowed for statistical purpose. Appeal filed by the assessee stands allowed for statistical purpose.

Summary

Issues: Delay in filing appeal, Condonation of delay, Addition of excess depreciation and unexplained cash credits, Consideration of explanation by CIT(A), Remitting matter back to CIT(A)

1. Delay in filing appeal and Condonation of delay:
The appeal was filed with a delay of 632 days due to the demise of the Authorized Representative (A.R) of the assessee who was responsible for filing the appeal. The assessee explained that they were under the impression that the appeal had been filed, but upon verification, it was found that it was not done. The Tribunal noted that there was no deliberate attempt or intention to file the appeal belatedly. Citing previous judgments, including one by the Hon'ble Supreme Court, the Tribunal decided to condone the delay and admitted the appeal in the interest of justice.

2. Addition of excess depreciation and unexplained cash credits:
The assessment was completed under section 143(3) with additions related to excess depreciation and unexplained cash credits. The CIT(A) confirmed these additions, leading the assessee to appeal before the Tribunal. During the appeal hearing, the Authorized Representative argued that the CIT(A) did not consider the explanations provided in the statement of facts and grounds of appeal. The Tribunal decided to remit the matter back to the CIT(A) for a detailed reconsideration of the issues, emphasizing the need for a thorough examination of the facts and merits of the case.

3. Consideration of explanation by CIT(A) and Remitting matter back to CIT(A:
The Tribunal observed that while the CIT(A) had given sufficient opportunities to the assessee during the appeal proceedings, the detailed speaking order was lacking. The Tribunal expressed dissatisfaction with the assessee's non-compliance with statutory notices but decided to remit the matter back to the CIT(A) for a fresh decision on merits after giving the assessee an opportunity to be heard. The Tribunal directed the assessee to cooperate with the department for the proper disposal of the appeal before the CIT(A).

In conclusion, the Tribunal allowed the appeal for statistical purposes, highlighting the importance of a thorough consideration of facts and a fair opportunity for the assessee to present their case. The decision to condone the delay in filing the appeal and the remittance of the matter back to the CIT(A) underscored the principles of justice and procedural fairness in tax matters.