USHA ISPAT LTD,NEW DELHI vs. ACIT, CENTRAL CIRCLE-18, , NEW DELHI

This appeal by the assessee is preferred against the order of the Commissioner of Income Tax [Appeals] – 27, New Delhi dated 25.11.2019 pertaining to assessment year 2001-02.

The solitary grievance of the assessee reads as under:

As can be seen from the grounds of appeal, the Assessing Officer framed ex-parte order stating at para 4 of his order that since the assessment was getting barred by limitation, the Assessing Officer had no alternative but to finalise the assessment proceedings u/s 144 of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] by making addition on account of disallowance out of purchase and freight and forward expenses on prorata basis.

The ld. CIT(A), without going into the merits, upheld the ex-parte assessment order.

In the grounds of appeal, the assessee has contended that the ld. CIT(A) has misunderstood the facts of the balance sheet as on 31.03.2002, as on 31.03.2001, no expenses of freight and forwarding has been claimed.

In my considered view, this contention of the assessee goes to the root of the matter. Therefore, in the interest of justice and fair play, I restore this issue to the file of the Assessing Officer with a direction to examine the issue afresh after giving reasonable opportunity of being heard to the assessee. The assessee is directed to furnish necessary documentary evidences in support of its claim.

In the result, the appeal filed by the assessee in is allowed for statistical purposes.