The Delhi Bench of Income Tax Appellate Tribunal ( ITAT ) ordered the rehearing of the assessee’s appeal after the Commissioner of Income Tax (Appeals)[CIT(A)] dismissed it for non-prosecution.
BKR Capital Private Limited,appellant -assessee, had filed its return for the Assessment Year 2014-15, declaring an income of Rs. 1,45,170/-. However, an assessment was conducted under Section 147 of the Act, and the income was reassessed to Rs. 4,56,37,170/-. This reassessment included significant additions: Rs. 4,46,00,000/- under Section 68 for unexplained cash credits, and Rs. 8,92,000/- as commission.
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Dissatisfied with the assessment, the assessee filed an appeal before the CIT(A), but the appeal was dismissed on 1st June 2024. Consequently, the assessee challenged the CIT(A)’s decision by filing the present appeal before the tribunal.
The counsel for the assessee stated that the CIT(A)’s order was passed in breach of the principles of natural justice. He emphasized that although the assessee had requested an adjournment, the CIT(A) dismissed the appeal for non-prosecution, which he argued was incorrect, and therefore, he sought that the appeal be allowed.
On the other hand, the Departmental Representative(DR) defended the actions of the lower authorities and supported their orders.
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The tribunal considered the submissions of both parties and examined the available record. It observed that the CIT(A)’s order had been passed ex-parte, dismissing the appeal due to the assessee’s failure to comply with the final notice.
However, taking into account that the assessee had requested an adjournment, which was denied by the CIT(A), and that the Assessee had not been given an opportunity to present their case, the tribunal decided to remand the matter to the CIT(A).
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The two member bench comprising Yogesh Kumar U.S(Judicial Member) and S. Rifaur Rahman(Accountant Member) directed the CIT(A) to grant the assessee a fair opportunity to be heard and to pass an order in accordance with the law. The assessee was also reminded to cooperate with the proceedings before the CIT(A).
In conclusion,the appeal was partly allowed for statistical purposes.
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