Nitesh Kumar Goyal Vs DCIT (Chhattisgarh High Court)
The appeal was filed under Section 260A of the Income-tax Act, 1961 against the order of the Income Tax Appellate Tribunal affirming the order of the Commissioner of Income Tax (Appeals) dated 14.02.2024, by which the assessee’s appeal under Section 246A had been dismissed ex parte for non-prosecution. The substantial question of law framed by the High Court was whether the ITAT was justified in affirming the CIT(A)’s order dismissing the appeal despite the assessee’s contention regarding service of notice.
The assessee, engaged in the business of trading computer systems and accessories, filed the return of income for Assessment Year 2013-14 on 31.03.2014, declaring total income of Rs. 16,87,250. The original assessment under Section 143(3) was completed on 28.03.2016, assessing total income at Rs. 1,50,84,533 by estimating net profit at 8% of sales and making an addition of Rs. 1,33,97,283.
The assessee’s first appeal before the CIT(A) was dismissed for non-compliance. On further appeal, the ITAT, by order dated 16.05.2019, remanded the matter to the Assessing Officer for fresh consideration after providing reasonable opportunity of hearing. Pursuant to the remand, the Assessing Officer issued notices under Section 142(1) on 24.02.2021 and 02.09.2021 through the Income-Tax Business Application (ITBA) portal, followed by a show cause notice under Section 144 dated 08.09.2021. As no response was received, the Assessing Officer completed the assessment on 20.09.2021 under Sections 144 read with 254 and 144B, reiterating the earlier assessment.
