Tridev Ispat Private Limited Vs DCIT (ITAT Raipur)
Short Notice, No Justice- Paper Opportunity Is No Opportunity- ITAT Raipur Holds Ex-Parte Dismissal Unsustainable
Raipur Tribunal, dealt with two connected appeals filed by Tridev Ispat Pvt. Ltd. for AYs 2019-20 & 2020-21. Assessee, engaged in the manufacture of ingots, was subjected to a search & seizure operation u/s 132 on 22.01.2019. Consequent assessments were completed u/s 153A/143(3). For AY 2019-20, an addition of ₹3,60,400 was made on account of cash payments violating section 40A(3), resulting in penalty proceedings u/s 270A. A penalty equal to 200% of tax sought to be evaded was levied for misreporting. For AY 2020-21, a negative stock discrepancy was noticed during the search & 4% gross profit of ₹12,96,791 was added, leading to penalty u/s 271AAB at 60% of the tax on the undisclosed income.
Assessee challenged these penalties before CIT(A). However, CIT9A) issued only two notices in each case, dated 11/03/2025 & 20/03/2025 (AY 2020-21) & 12/03/2025 & 21/03/2025 (AY 2019-20), fixing hearings on 17/03/2025 & 24/03/2025. Assessee did not attend, & the appeals were dismissed ex-parte.
Before the Tribunal, Assessee contended that the dismissal suffered from violation of the principles of natural justice. Tribunal first condoned the delay of 40-41 days in filing appeals, citing the liberal interpretation laid down by the Bombay High Court in Vijay Vishin Meghani v. DCIT (398 ITR 250) & the Supreme Court in Collector, Land Acquisition v. Katiji (167 ITR 471).
