Ex-parte Dismissal due to Lack of Consideration: ITAT remands Matter to CIT(A) [Read Order]

The Ahmedabad Bench of Income Tax Appellate Tribunal ( ITAT ) remanded a case to the Commissioner of Income Tax (Appeals) [CIT(A)] after finding that the appeal had been dismissed ex-parte without proper consideration.

Juned Yusuf Shethwala,appellant-assessee,had his case re-opened under section 147 of the Act based on information the Department had. The assessee paid Rs. 32,32,572/- for credit card bills and Rs. 8,71,152/- for share transactions in the Assessment Year(AY) 2010-11. In response to the notice under sections 148/142(1), the assessee’s Chartered Accountant attended the proceedings and provided details.

The assessee earned income from trading cloth and dress material. The Assessing Officer ( AO ) noted that the appellant did not submit important documents about the credit card payments, share investments, and deductions under Chapter VIA. Despite attending the hearing, the assessee could not explain these matters.

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As a result, the Assessing Officer ( AO ) added Rs. 14,17,999/-, which included Rs. 4,12,050/- for unexplained credit card payments and share investments, and Rs. 30,000/- for the denied deduction under Chapter VIA.

The assessee dissatisfied by the order appealed before the CIT(A) who later dismissed the appeal.

Aggrieved by the decision of the CIT(A) the assessee appealed before the tribunal.

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A single member bench comprising Suchitra Kamble ( Judicial Member ) heard both parties and examined the available records. It was noted that the CIT(A) did not mention whether the appellant had received the required notices or if they were properly served. The CIT(A) also did not address the details submitted by the assessee to the AO and dismissed the appeal without considering its merits.

The tribunal decided to send the case back to the CIT(A) for a thorough review and verification of the evidence in line with the Income Tax Act. It also stated  that the assessee should be given an opportunity to present their case, ensuring fairness and natural justice.

In short,the appeal filed by the assessee was partly allowed for statistical purposes.

To Read the full text of the Order CLICK HERE

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