EARTH MINERALS COMPANY LIMITED,JHARSUGUDA vs. DCIT, ROURKELA CIRCLE, ROURKELA

This appeal is filed by the assessee against the order dated 10.01.2020 passed by the CIT(A), Cuttack for the assessment year 2014-2015.

At the outset, ld. AR submitted that the CIT(A) has passed the ex- parte order without providing any opportunity of hearing. Therefore, the ld. AR prayed for an opportunity to represent its case before the CIT(A). 3. Ld. DR relied on the order of CIT(A) and submitted that the CIT(A) has passed order after considering the material available on record. Hence, the appeal of the assessee deserves to be dismissed.

After considering the submissions of both the sides and perusing the relevant material placed in the record of the Tribunal, we find that the CIT(A) has passed the impugned order ex-parte for want of compliance from the assessee. The CIT(A) in its order has also noted that the assessee has not deducted the tax at source towards payment to MCL as rent for usage of railway siding. As per the CIT(A) the assessee has not obtained declaration from a Chartered Accountant of MCL in a prescribed form stating that the said receipt has been accounted for by MCL in its books of account and tax has duly been paid on it and further such form has to be furnished before a prescribed authority. Ld. AR before us submitted that the deduction from the current year’s income of the unabsorbed business losses and unabsorbed depreciation brought forward from preceding assessment years and claimed in the return of income filed u/s.139(1) of the Act. It was also submitted by the ld. AR that the declaration from the Chartered Accountant of MCL in a prescribed form has been obtained, however, due to some unavoidable circumstances, the same could not be produced before the CIT(A), therefore, he requested for an opportunity to produce the same before the CIT(A). Considering the facts and circumstances of the case and in the interest of justice, we restore the appeal of the assessee to the file of CIT(A) with a direction to verify the declaration to be produced by the assessee and pass a speaking and reasoned order considering the submissions of the assessee. Needless to say, the assessee shall be provided reasonable opportunity of hearing. The assessee is also directed to appear before the CIT(A) positively and cooperate with the CIT(A) in early disposal of the case.

In the result, the appeal of the assessee is allowed for statistical purposes.