Non-Consideration of Grounds and Failure to Provide Adequate Hearing: ITAT Restores Matter to CIT(A) [Read Order]

The Ahmedabad Bench of Income Tax Appellate Tribunal(ITAT) restored the matter to the Commissioner of Income Tax (Appeals) [CIT(A)] for fresh consideration due to non-consideration of grounds and failure to provide adequate hearing.

Hemantkumar Rajendrakumar Shah,appellant-assessee, faced an addition under Section 69A during assessment for taking unaccounted accommodation entries through transactions in shares of M/s. Stampede Capital Ltd.

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The CIT(A) dismissed the assessee's appeal for non-appearance and failure to submit documents.

The assessee appealed before the tribunal, challenging the dismissal of the appeal and the ₹76,07,650 addition under Section 69A. It was argued that the ledger and trading account, showing a ₹32.63 lakh loss, were ignored. The assessee also contested the levy of interest and unspecified penalty proceedings.

A 21-day delay occurred in filing the appeal as Chartered Accountant Mehul Chalishajar was unable to file it due to illness and hospitalization. A hospital discharge certificate was submitted as proof.

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Read More:Violation of Natural Justice for Lack of Hearing Opportunity: ITAT Remands Case to CIT(A)

The assessee's counsel argued that the CIT(A) dismissed the appeal without a proper hearing or considering the grounds raised. Despite submitting nearly 100 pages of details to the Assessing Officer, they were overlooked. A request was made to restore the matter for fresh consideration with a fair hearing.

Read More:ITAT Sets Aside CIT(A) Order for Failure to Provide Fair Hearing, Remands for Fresh Adjudication

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The two member bench comprising Siddhartha Nautiyal(Judicial Member) and Annapurna Gupta(Accountant Member) observed that the CIT(A) summarily dismissed the appeal, stating that no substantial evidence was submitted to overturn the AO’s decision and that the appellant was not interested in prosecuting the appeal. Since the CIT(A) refused to address the grounds raised and issued all hearing notices within a month, the tribunal found it appropriate to restore the matter for fresh consideration with a proper hearing opportunity.

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

To Read the full text of the Order CLICK HERE

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