ARTI SHAILEN TOPIWALA,MUMBAI vs. THE INCOME TAX OFFICER 25(2) (1), MUMBAI

Shri Jitendra Singh appearing on behalf of the assessee submitted that the CIT(A) has dismissed the appeal of assessee in-limine for non-prosecution. The ld.Counsel for the assessee submitted that the assessee has prima-facie good case in her favour. The assessee would be able to show merits in the appeal if an opportunity is granted to appear before the CIT(A).

Per contra, Shri Mehul Jain representing the Department vehemently defended the impugned order . The ld.Departmental Representative submitted that notice of hearing were issued to the assessee on five occasions, but the assessee failed to respond to any of the notices. No submissions were made despite service of notices. The ld.Departmental Representative further pointed that even before the Assessing Officer assessee failed to appear, hence, the Assessing Officer had to pass assessment order under section 144 of the Income Tax Act, 1961 [in short ‘the Act’]. The ld.Departmental Representative prayed for dismissing the appeal of assessee.

Both sides heard, orders of authorities below examined. We find that the assessee has been non-cooperative before the authorities below. During the assessment proceedings the assessee failed to appear before the Assessing Officer. Consequently, the Assessing Officer was constrained to frame assessment under section 144 of the Act . Even during the First Appellate proceedings, the assessee failed to respond to the notices repeatedly sent by the CIT(A). No explanation whatsoever has been furnished before us for non- appearance before the authorities below. In the interest of justice, opportunity is granted to the assessee to make submissions before the CIT(A). The CIT(A) shall decide the appeal denovo after affording reasonable opportunity of hearing to the assessee, in accordance with law.

The assessee is directed to make submissions before the CIT(A) after service of notice of hearing without fail. In case, the assessee fails to respond to the notice issued by CIT(A), the CIT(A) shall be at liberty to take an adverse view.

In the result, appeal by assessee is allowed for statistical purpose, in the terms aforesaid.