Anmol Medicare Limited Vs ACIT (ITAT Ahmedabad)
Assessee filed return on 31.10.2015 declaring income of ₹13,86,590/-, processed u/s 143(1). Later, case was reopened u/s 147 based on information from DCIT (Central Circle) that Assessee had received accommodation entries from entities linked to Shri Mahendra Shantilal Patel, searched u/s 132. Reassessment u/s 143(3) r.w.s. 147 was completed on 16.12.2019 determining total income of ₹23,62,660/-, making following additions/disallowances: Disallowance u/s 43B – ₹97,481, Disallowance of interest on late payment of TDS – ₹51,587, Disallowance of loss on sale of car – ₹5,87,459 & Addition u/s 68 for alleged accommodation entries – ₹2,42,543
On appeal, CIT(A), NFAC dismissed the case ex parte on 31.10.2023 citing non-compliance, without adjudicating issues on merits.
Tribunal noted that it is evident that CIT(A) dismissed the appeal without adjudicating the issues raised by Assessee on merits. CIT(A) dismissed the appeal of the assessee ex-parte, citing non-compliance, even though procedural compliances such as e-filing of appeal appear to have been made. The grounds raised by Assessee are substantial and pertain to jurisdictional validity of reopening, factual disallowances, and alleged denial of natural justice.
Tribunal held that CIT(A) erred in dismissing the appeal without deciding the matter on merits. The appellate authority is duty bound to dispose of the appeal by reasoned order, particularly when the appeal is duly filed and when issues relate to both facts and law.
