HARDCORE INFOTECH PVT LTD,NEW DELHI vs. ACIT, CENTRAL CIRCLE 13, DELHI

This appeal filed by the assessee is directed against the order dated 23.05.2022 passed by the Commissioner of Income Tax (Appeals)-26, New Delhi relating to Assessment Year 2017-18.

Brief facts of the case as culled out from the material on record are as under :-

Assessee is a company stated to be engaged in trading, dealing, investment in shares and securities and is a NBFC Company to do financing business and electronically filed its return of income for A.Y. 2017-18 on 09.03.2018 declaring

Aggrieved by the order of AO, assessee carried the matter before CIT(A) who vide order dated 23.05.2022 in Appeal No.10336/19-20 dismissed the appeal of the assessee. Aggrieved by the order of CIT(A), assessee is now in appeal and has raised the following ground: 1. “Section 40A(3) is not attracted towards barter transactions.”

On the date of hearing, none appeared on behalf of the assessee nor any adjournment application was filed on its behalf though the file reveals that the notice of hearing was served on the assessee. In such a situation, I proceed to dispose of the appeal ex parte qua the assessee and after hearing the Learned DR.

Before me, Learned DR supported the order of AO.

I have heard the Learned DR and perused the material available on record. The perusal of CIT(A) order reveals that CIT(A) has passed an ex parte order without deciding the issue on merits. Sub Section (6) of Section 250 of I. T. Act mandate the CIT(A) to state the points in dispute and thereafter assign the 3 reasons in support of his conclusion. I am of the view that by dismissing the appeal without considering the issue on merits, Learned CIT(A) has failed to follow the mandate required in Sub Section (6) of Section 250 of the Act. Further it is also a well settled principle of natural justice that sufficient opportunity of hearing should be offered to the parties and no parties should be condemned unheard. In view of these facts, I set aside the impugned order of CIT(A) dated 23.05.2022 and restore the issue to the file of CIT(A) for re-adjudication of the issues after granting sufficient opportunity of hearing to the assessee. Assessee is also directed to furnish the details called for by the lower authorities. In view of the decision to restore the issue to CIT(A), I am not adjudicating on merits the grounds raised by the assessee. Thus the ground of assessee is allowed for statistical purposes.