Amjay Medimax India Pvt. Ltd Vs DCIT (ITAT Ahmedabad)
ITAT Ahmedabad held that non-compliance to notices issued u/s. 250 by CIT(A) resulted into delayed appellate proceedings. Accordingly, cost of Rs. 5,000 imposed on the assessee for lack of diligence.
Facts- The case of the assessee was selected for scrutiny and a notice u/s. 143(2) of the Act was issued. After completing the assessment proceedings, the AO passed an order under section 143(3) of the Act determining the total income at Rs.7,92,42,171/- after making various additions and disallowances.
Aggrieved by the assessment order, the assessee filed an appeal before the CIT(A). Multiple notices were issued by the CIT(A) u/s. 250 of the Act. All the notices were sent on the e-mail address provided in the Form 35. However, no submissions were filed by the assessee except for one adjournment request on 23/10/2023. CIT(A) dismissed the appeal ex-parte for non-prosecution and confirmed the additions and disallowances made by the AO without adjudicating the grounds of appeal on merits. Being aggrieved, the present appeal is filed.
Conclusion-Held that the principles of natural justice operate both ways—while the revenue authorities are required to provide a reasonable opportunity of being heard, the taxpayer is equally obligated to co-operate with the authorities and utilize the opportunities extended. In the present case, despite receiving adequate opportunities, the assessee displayed a casual approach and indifference, which not only delayed the appellate proceedings but also burdened the judicial system.
