Saiganapath Hotel Pvt. Ltd. Vs ITO (ITAT Bangalore)
The Income Tax Appellate Tribunal (ITAT) Bangalore has remitted the appeal filed by Saiganapath Hotel Pvt. Ltd. for the assessment year (AY) 2012-13 back to the Commissioner of Income Tax (Appeals) [CIT(A)] for reconsideration. The appeal stemmed from the assessee’s failure to respond to multiple notices issued by the CIT(A), which led to an ex-parte order confirming the additions made by the Assessing Officer (AO). The AO had reassessed the company’s income, specifically due to a significant cash deposit of Rs. 2,55,78,317/- and had concluded an income of Rs. 1,31,95,698/-.
The core issue in the appeal was the lack of response from the assessee to the CIT(A)’s notices issued between February 2021 and June 2024. The assessee argued that its non-responsiveness was due to an ongoing legal dispute with the State Bank of India (SBI) before the Debt Recovery Tribunal, which had involved substantial amounts and diverted the company’s attention away from the income tax appeal. The Tribunal noted this explanation and emphasized the importance of fair play and natural justice, directing the CIT(A) to review the case on its merits once again and provide an opportunity to the assessee to submit the necessary documents.
