CAROL INFO SERVICES LTD,MUMBAI vs. THE DCIT-15(1)(2), MUMBAI

Facts relating to the case are stated in brief. The assessment in the hands of the assessee was completed by the Assessing Officer under section 143(3) of the Act by making disallowances under section 14A and under section 57(iii) of the Act. The assessee challenged the additions by filing the appeal before the learned CIT(A). Since the assessee did not respond to the notices issued by the learned CIT(A), the first appellate authority took the view that the assessee is not interested in prosecuting the appeal. Accordingly he dismissed the same in limine. Aggrieved, the assessee has filed the appeal this appeal before the Tribunal.

Learned AR submitted that the assessee did not receive notices issued by the learned CIT(A) and hence it could not respond to the same. He further submitted that the learned CIT(A) has not adjudicated the grounds on merit. Accordingly he submitted that the assessee would suffer irreparable loss if the order of the learned CIT(A) is confirmed. In the alternative, he submitted that the assessee may be provided with an opportunity to present its case before the learned CIT(A).

We heard learned DR and perused the record. Admittedly the learned CIT(A) has not adjudicated the grounds urged by the assessee on merits. Accordingly, in the interest of natural justice, we are of the view that the assessee should be provided with one more opportunity to present its case properly before the learned CIT(A), Since learned AR submits that the assessee did not receive notices issued by the learned CIT(A). Accordingly, we set aside the order passed by the learned CIT(A) and restore all the issues to his file for adjudicating them on merits, after affording adequate opportunity of being heard to the assessee. We also direct the assessee to fully cooperate with the learned CIT(A) for expeditious disposal of the appeal.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes.