K D TREND WEAR LIMITED,NEW DELHI vs. ITO, WARD-14(1), NEW DELHI

None appeared on behalf of the assessee despite issue of notice by the Registry. Therefore, this appeal was decided on the basis of the material available on record and after hearing the ld. DR.

Facts of the case, in brief, are that the assessee is a company and had filed its return of income on 31st March, 2013 declaring the total income at Rs.1,45,441/-. The case of the assessee was reopened u/s 147 on account of huge cash transactions in the bank account. In response to the notice u/s 148, the assessee filed its return of income on 27th June, 2018 declaring the loss of Rs.2,86,311/-. The AO completed the assessment u/s 147/143(3) at a total income of Rs.12,43,254/- wherein he made addition of Rs.10,61,354/- u/s 68 of the Act and Rs.1,81,900/- u/s 40A(3) of the IT Act. Since the assessee did not appear before the CIT(A), the ld. CIT(A), in the ex parte order passed by him, sustained the additions made by the AO and dismissed the appeal filed by the assessee.

Aggrieved with such order of the 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 by the assessee before the CIT(A) despite three opportunities granted, the ld.CIT(A) was constrained to pass the ex parte order and thereby confirm the additions in absence of any documents filed before him to substantiate the various credits. Considering the totality of the facts of the case and in the interest of justice, I deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case and decide the issue as per fact and law. The assessee is also hereby directed to appear before the CIT(A) and substantiate its case, failing 2 which, the 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 purposes.

In the result, the appeal filed by the assessee is allowed for statistical purposes. The decision was pronounced in the open court at the time of hearing itself i.e., on 14.07.2021.