KARNATAKA SHEEP AND WOOL DEVELOPMENT CORPORATION LIMITED,BANGALORE vs. INCOME TAX OFFICER, WARD 4(1)(1), BANGALORE

We have heard the rival submissions of both the parties and perused the materials available on record. The appeal of the assessee before the learned CIT(A) came to be dismissed merely on the ground that there was a delay of 151 days in filing the appeal and the application for condonation of delay was rejected. Consequently,

The learned Departmental Representative, on being asked, has stated that he has no objection if the matter is restored to the file of the Assessing Officer for adjudication afresh in accordance with law.

Considering the totality of the facts and circumstances of the case, and particularly the fact that the assessment was completed ex parte and the appeal has not been adjudicated on merits, we are of the considered view that substantial justice would be served by providing one more effective opportunity to the assessee to present its case before the Assessing Officer. The purpose of appellate proceedings is to determine the correct taxable income in accordance with law and not to defeat the claim on account of procedural lapses, particularly when the Department has no objection to restoration. In the interest of justice and fair play, and without expressing any opinion on the merits of the additions/disallowances made in the assessment order, we deem it appropriate to set aside the impugned order and restore the matter to the file of the Assessing Officer for fresh adjudication in accordance with law. The Assessing Officer shall provide reasonable and adequate opportunity of being heard to the assessee and shall decide the issues afresh on merits after considering the evidences and submissions to be furnished by the assessee. The assessee is also directed to cooperate with the proceedings and furnish all necessary details/evidences within the time allowed by the Assessing Officer. The assessee shall not seek unnecessary adjournments. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

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