This case involves the appellant, Kusum Gupta, New Delhi, contesting the ex-parte order and the addition made by the Assessing Officer (AO) under Section 68 of the Income Tax Act, 1961, for the assessment year 2013-14. The case was filed on February 25, 2019, and the final tribunal order was pronounced on January 27, 2019.
The proceedings were conducted at the Income Tax Appellate Tribunal (ITAT), Delhi Bench ‘D’, New Delhi, before Ms. Sushma Chowla, Vice President, and Sh. N.K. Billaiya, Accountant Member. This judgment addresses the issues surrounding the ex-parte order and the addition of unexplained income under Section 68.
Smt. Kusum Gupta
53-D, Kamla Nagar, New Delhi-110007
PAN: AAIPG9646C
Income Tax Officer, Ward-35(2), New Delhi
The appellant was represented by Sh. Nippun Mittal, C.A. The respondent was represented by Sh. Jagdish Singh, Sr. DR.
This appeal was filed by the assessee against the order dated November 26, 2018, of CIT(A)-12, New Delhi, relating to the assessment year 2013-14. The assessee challenged the CIT(A)’s order, which dismissed the appeal ex-parte and sustained the addition made by the AO under Section 68 of the Income Tax Act.
The primary grievance was the dismissal of the appeal ex-parte without affording sufficient opportunity of hearing and without addressing the merits of the addition made by the AO. The AO had made an addition under Section 68 due to unexplained income.
The CIT(A) dismissed the appeal due to non-appearance and non-compliance by the assessee. However, the CIT(A) did not decide the appeal on merit, which is required under the provisions of Section 250(6) of the Income Tax Act, 1961. The CIT(A) has no power to dismiss the appeal for non-prosecution by relying on the ratios laid down in CIT vs. B.N. Bhattacharya & Another 118 ITR 461 (SC) and Late Tukoji Rao Holker vs. CWT 223 ITR 480 (MP).
After considering the rival arguments and reviewing the orders of the AO and the CIT(A), the tribunal found that the CIT(A) had dismissed the appeal due to non-appearance but did not decide the appeal on merit. The tribunal emphasized that the CIT(A) is required by law to decide the appeal on merit. In the interest of justice, the tribunal deemed it proper to restore the issue to the CIT(A) with directions to grant a final opportunity to the assessee to substantiate her case and decide the issue based on facts and law.
The tribunal directed the assessee to appear before the CIT(A) and present the necessary evidence. The CIT(A) was instructed to pass an appropriate order as per law if the assessee failed to appear.
The tribunal allowed the appeal for statistical purposes, underscoring the importance of due process and the opportunity for the assessee to present the case on merit.
Order pronounced in the open Court on January 27, 2019.
Sd/-
(N.K. Billaiya)
Accountant Member
Sd/-
(Sushma Chowla)
Vice President
Dated: January 27, 2019
Copy forwarded to:
1. Appellant
2. Respondent
3. CIT
4. CIT(Appeals)
5. DR, ITAT
Asst. Registrar, ITAT, New Delhi
Dates:
1. Date of dictation: January 14, 2019
2. Date on which the typed draft is placed before the dictating Member: January 14, 2019
3. Date on which the typed draft is placed before the other Member: January 14, 2019
4. Date on which the approved draft comes to the Sr. PS/PS: January 14, 2019
5. Date on which the fair order is placed before the Dictating Member for pronouncement: January 14, 2019
6. Date on which the fair order comes back to the Sr. PS/PS: January 14, 2019
7. Date on which the final order is uploaded on the website of ITAT: January 14, 2019
8. Date on which the file goes to the Bench Clerk: January 14, 2019
9. Date on which the file goes to the Head Clerk: January 14, 2019
10. Date on which the file goes to the Assistant Registrar for signature on the order: January 14, 2019
11. Date of dispatch of the Order: January 14, 2019
Kusum Gupta vs. ITO, Ward-35(2), New Delhi – Ex-parte Order Case for Assessment Year 2013-14
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