Shree Shivpur Dudh Utpadak Sahakari Mahila Mandali Ltd. Vs ITO (ITAT Surat)
Summary: This appeal was filed by the assessee against the ex-parte appellate order dated 30.05.2024 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi, arising from the ex-parte assessment order passed under Section 144 of the Income Tax Act, 1961 for Assessment Year 2017-18.
The assessee had not filed its return of income under Section 139 of the Act for A.Y. 2017-18. A notice under Section 142(1) was thereafter issued. In response, the assessee filed a belated return but did not participate in the hearing proceedings, resulting in an ex-parte assessment order making an addition of Rs. 17,90,229/-.
The assessee filed an appeal before the CIT(A). The CIT(A) provided seven opportunities of hearing, which were not responded to by the assessee, and consequently dismissed the appeal for non-prosecution.
Before the ITAT, the assessee challenged the ex-parte proceedings and contended that notices were not properly served and that it had not been granted a fair, proper and meaningful opportunity of being heard. The assessee produced proof of replies filed on 04.09.2019, 23.09.2019 and 13.11.2019 and requested one more opportunity to explain its case.
The assessee’s grounds also challenged the addition of Rs. 17,90,229/-, the action under Section 144, the estimated net profit ratio, the alleged unexplained cash credit of Rs. 4,33,350/- under Section 68 read with Section 115BBE, and non-grant of deduction under Section 80P(2)(b). These were grounds raised by the assessee and were not finally adjudicated on merits by the Tribunal.
