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Income Tax Appellate Tribunal, DELHI BENCH: ‘B’ NEW DELHI
Before: SHRI N. K. BILLAIYA & SH. YOGESH KUMAR U.S.
This appeal has been filed by the assessee against the order dated 29/03/2019 passed by CIT(A)-XXV, New Delhi for Assessment Year 2014-15.
The grounds of appeal are as under:-
“On the facts and in the circumstances of the case and in law the following actions of the Ld. CIT (Appeals) are most arbitrary, erroneous and untenable in:
deciding the appeal ex-parte against the assessee without providing due, reasonable, proper and adequate opportunity of hearing;
2. confirming the following additions to the returned income:
a) Rs.73,99,500/- on account of cost of land used for construction of Cold Storages; b) Rs. 1,07,00,000/- on account of share application money; c) Rs.6,24,500/- on account of share allotment at an amount exceeding the Fair Market Valuation of Shares.
Above actions being arbitrary, erroneous and untenable must be quashed with directions for appropriate relief.
Brief facts of the case are that, the assessee Company is engaged in the business of trading of spices and Kiryana items. Return of income for the A.Y 2014-15 was electronically furnished on 30/11/2014 disclosing total income at Rs. (-) 11,94,75,549/-. The notice u/s 143(2) along with detailed questionnaire under section 142(1) was issued on 06/06/2016 and served on the assessee. In response to notices, the authorized representative appeared on behalf of the assessee company attended and furnished the replies on behalf of the assessee company. The assessment order came to be passed by computing the income of the assessee at Rs.(-) 10,07,51,549/- as against the return income of Rs. (-) 11,94,75,,549/-.
Aggrieved by the same, the assessee has preferred the appeal before the CIT(A). During the Appeal proceedings, the assessee has not appeared before the Ld.CIT(A) for six consecutive dates. The Ld.CIT(A) vide order dated 29/03/2019 , dismissed the appeal without deciding the Appeal on merit.
Aggrieved by the order of dismissal dated 29/03/2019, the assessee has preferred the present appeal on the grounds mentioned above.
None appeared on behalf of the assessee, we have heared the Ld. DR, perused the documents on record and gave our thoughtful consideration.
It is pertinent to note that, the CIT(A) has passed an ex-parte order by dismissing the Appeal for non prosecution without adjudicating the appeal on merits. Therefore, we deem it fit to remand the matter to the file of CIT(A) for fresh adjudication of the Appeal on merit. Needless to say, the assessee be given opportunity of hearing by following the principles of natural justice. Accordingly, we allow the Ground No. 1 for Statistical Purposes. Since the matter is restore the CIT(A) to decide on merit, the ground No. 2 need not be adjudicated by us.
In the result, the Appeal of the Assessee is partly allowed for statistical purpose.
Order pronounced in the open court on 06th July, 2022.