S.R. TIMBER PRODUCTS PVT. LTD.,HOWRAH vs. D.C.I.T., CIRCLE - 13(2), KOLKATA, KOLKATA

ORDER

Per Shri Sonjoy Sarma, JM:

“1. For that the ex-parte order passed by the Ld. CIT(A) is in gross violation of the principles of natural justice and as such, is not sustainable in law.

2. For that the Ld. CIT(A) was not justified in dismissing the appeal of the assessee without dealing with the merit of the additions made by the AO. 3. a) For that on the facts and in circumstances of the case, the Ld. CIT(A) was not justified in confirming the addition of Sundry Creditors amounting to Rs.32,36,48,683/- by wrongly invoking the provisions of section 68 of the Income Tax Act, 1961without establishing the genuineness of the creditors. The AO did not doubt goods purchased by your appellant during the year. Hence the addition is arbitrarily illegal and bad in law. b) For that on the facts and in circumstances of the case, and without prejudice to any other ground taken herein the Ld. CIT(A) was not justified in confirming the addition of loans and liability amounting to Rs.37,36,715/- by wrongly invoking the provisions of section 68 of the Income Tax Act, 1961 without establishing the genuineness is arbitrarily illegal and bad in law. c) For that on the facts and in circumstances of the case, and without prejudice to any other ground taken herein the Ld. CIT(A) was not justified in confirming the disallowance of the entire amount of rents of Rs.6,27,242/, Repairs to plant & machinery of Rs.85,240/- and professional fees of Rs.3,16,438/- summing up to Rs.10,28,926/- by Wrongly invoking the provisions of section 40a(ia) of the Income Tax Act, 1961 without establishing the genuineness is arbitrarily illegal and bad in law. d) For that on the facts and in circumstances of the case, and without prejudice to any other ground taken herein the Ld. CIT(A) was not justified in confirming the 50 percent disallowance of Wages & salary, bonus & allowances Rs.14,47,871/-, benefit to employees Rs.1,31,900/-, Staff welfare expenses Rs.2,33,094, Telephone expenses 2,33,094/- and other expenses Rs.10,36,60,606/- amounting Rs.5,18,30,303/- without invoking any provisions of any section of the Act is arbitrarily illegal and bad in law. e) For that on the facts and in circumstances of the case, and without prejudice to any other ground taken herein the Ld. CIT(A) was not justified in confirming addition of Rs.33,15,843/- as statutory dues by the AO on basis of conjectures,

3 & 441/Kol/2022 AY: 2014-15 & 2015-16 M/s. S.R. Timber Products Pvt. Ltd. surmises and assumptions without invoking any provisions of any section of the Act is arbitrarily illegal and bad in law. f) For that on the facts and in circumstances of the case, and without prejudice to any other ground taken herein the Ld. CIT(A) was not justified in confirming the disallowance of the entire amount of interest expense on working capital and libor finance of Rs.6,89,15,673/- on the basis of conjectures, surmises and assumptions without invoking any provisions of any section of the Act is arbitrarily illegal and bad in law. g) For that on the facts and in circumstances of the case, and without prejudice to any other ground taken herein the Ld. CIT(A) was not justified in confirming the disallowance of the entire amount of transaction amount of Rs. 5,41,622/- through Americal Express Credit Card, treating it as unexplained cash credit on the basis of conjectures, surmises and assumptions and wrongly invoking provisions of section 68 of the Act is arbitrarily illegal and bad in law. h) The appellant craves leave to add further grounds of appeal or amend, modify, rescind, supplement, alter any of the grounds stated hereinabove either before or at the time of hearing of this appeal.”

5. At the outset, the ld. counsel for the assessee submitted that since the assessee did not get any opportunity to file relevant documents and to make submission before the ld. CIT(A). Since the order passed by the ld. CIT(A) was an ex-parte order, in such a situation one more opportunity should be given to the assessee in the interest of justice and issue raised in the instant appeal may be set aside to the file of ld. CIT(A) for fresh consideration. The ld. DR was fair enough not to oppose such prayer made by the ld. AR.

6. We, therefore, under the given facts and circumstances are of the considered view that since the order of ld. CIT(A) is an ex-parte order and no discussion has been made on the merits of the case. We, in the interest of justice, set aside the impugned order and remit back to the file of ld. CIT(A) for deciding all the issues raised before us by way of a speaking order. We also direct the assessee to remain vigilant for receiving the notices of hearing from ld. CIT(A) and should not request for any adjournment unless otherwise required for reasonable cause and should file all necessary documents so as to facilitate the ld. CIT(A) for passing the speaking