SKP TIMBERS INDIA PVT. LTD.,KANYAKUMARI vs. ITO, WARD-1,, NAGERCOIL

At the very outset, we notice that the orders of First Appellate Authority (FAA) are ex-parte, since there was no compliance from the assessee to various notices issued from the office of the First Appellate Authority. Further, we also note that the assessment has been completed on best judgment basis r.w.s.147 r.w.s. 144 r.w.s. 144B of the Act.

The ld.AR submitted that the assessee failed to take note of the notices issued by the FAA & AO and hence, remained ex-parte. The Ld.AR undertook that he would duly appear and furnish the necessary details as and when called for. The Ld. AR, only pleaded that one more opportunity be granted to the assessee and the matter be restored to the file of the AO, so as to enable the assessee to effectively present his case.

The Ld.DR submitted that adequate opportunities were provided from the offices of the FAA & AO and there is no violation of principles of natural justice. Therefore, it was submitted that the appeal of the assessee may be dismissed.

We have heard rival submissions and perused the materials on record. The proceedings before the AO as well as the FAA were ex-parte, since the assessee did not respond to various notices issued from the office of the AO & FAA. The Ld. AR submitted that one more opportunity may be granted to the assessee to represent his cases before the AO and undertook that he would duly appear and furnish the necessary details as and when called for. We strongly deprecate the nonchalant attitude of the assessee in not responding to the statutory notices issued by the FAA & AO. However, considering the submissions of the Ld. AR and in the interest of justice and fair play, we are of the view that the matter ought to be restored to the files of the AO as a last opportunity with a condition assessee pays a cost of Rs.10,000/- (Rupees ten thousand only) in each case to be paid to Tamil Nadu State Legal Services Authority at the Hon’ble High Court of Madras. The amount of Rs.30,000/- shall be paid within a month’s time from the date of receipt of this order and assessee shall produce the receipt for the said payment before the AO. Accordingly, the matter is remitted to the files of the AO for fresh adjudication. The AO shall afford reasonable opportunity of hearing to the assessee. The assessee is directed to co-operate

In the result, the appeals filed by the assessee are allowed for statistical purposes.