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Income Tax Appellate Tribunal, DELHI BENCH, ‘SMC’: NEW DELHI
Before: SHRI R.K. PANDA
ORDER This appeal filed by the assessee is directed against the ex-parte order dated 31.01.2019 of the learned CIT(A)-37, New Delhi, relating to Assessment Year 2014-15.
Despite RPAD notice sent by the Registry on a number of occasions, there was no appearance from the side of the assessee. Therefore, this appeal is being decided on the basis of material available on record and after hearing the Ld. DR.
Although, a number of grounds have been taken by the assessee however, these all relate to the ex-parte order of the Ld. CIT(A) in confirming the various additions made by the AO.
Fact of the case, in brief, are that the assessee is a private limited company engaged in trading of selling of cars and accessories, it filed its return of income declaring NIL income after adjusting current year loss of Rs.38,963/-.
However, tax of Rs.1,69,404/- was paid on book profits of Rs.9,15,697/- computed under the MAT provisions. The case was selected for scrutiny through CASS. Accordingly, notice u/s 143(2) of the Act was duly served on the assessee.
Thereafter, the AO issued noticed 142(1) along with questionnaire. After considering the submissions filed by the assessee from time to time, the AO made addition/disallowance to the total income of the assessee.
A. Disallowance of interest on late deposit of TDS of Rs.5,409/- B. Disallowance of Depreciation of Rs.2,00,000/- C. Disallowances out of Other expenses of Rs.1,62,503/- 5. Thus, the AO made addition/disallowance to the total income of the assessee off of Rs.3,67,912/- to the returned loss of Rs.38,693/-and after set of brought forward loss of Rs.70,407/- determined the total income of the assessee at Rs.2,58,542/-.
Since, the assessee did not appear before the Ld. CIT(A) despite five opportunities granted, the Ld. CIT(A) in the ex-parte order passed by him, dismissed the appeal filed by the assessee by relying on the following decisions:-
I. CIT vs Multiplan India Ltd. 38 ITD 320 (Del) II. Estate of Late Tukojirao Holkar vs CWT, 223 ITR 480 (M.P.) III. New Diwan Oil Mils vs CIT (2008) 296 ITR 495 (P & H) IV. CIT vs B.N. Bhattachargee and Another, 118 ITR 461(SC) 7. Aggrieved by the impugned order of the Ld. CIT(A), the assessee is in appeal before the Tribunal.
I have heard the ld. DR and perused the record. It is an admitted fact that due to non-appearance of the assessee despite five opportunities granted by the Ld. CIT(A), the Ld. CIT(A) in his ex-parte order, dismissed the appeal filed by the assessee for non-prosecution of the appeal. However, the Ld. CIT(A) has not decided the appeal on merit which he is supposed to do as per the provisions of section 250(6) of the Act, according to which, the order of the Ld. CIT(A) disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. Since, the Ld. CIT(A) in the impugned order has simply dismissed the appeal for want of prosecution and has not decided the issue on merit, therefore, considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore this issue to the file of the Ld. CIT(A) with a direction to grant an opportunity of being heard to the assessee and pass speaking order as per fact and law. The assessee is also hereby directed to appear before the Ld. CIT(A) and substantiate its case failing which the Ld. CIT(A) is at liberty to pass appropriate order as per law. I hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purpose.
In the result, the appeal of the assessee is allowed for statistical purpose.
The Order is pronounced in the open court at the time of hearing itself i.e. today on 11.10.2021.