DLA INFRASTRUCTURES PVT. LTD.,NEW DELHI vs. DCIT, CIRCLE- 7(1), NEW DELHI

The appeal filed by the assessee is directed against the Order dated 03.04.2018 of the Ld. CIT(A)-3, New Delhi for the assessment year 2014-15. All the grounds raised in the appeal relate to the exparte order of the Ld. CIT(A) in sustaining the addition of Rs. 6,77,083/-, made by the Assessing Officer in his Order dated 29.7.2016 passed u/s. 143(3) of the Income Tax Act, 1961.

The facts of the case, in brief , are that the assessee is a Private Limited Company engaged in the business of real estate and property development. It filed its return of income on 20.9.2014 declaring total income of Rs. 8,99,45,690/- . The AO by invoking the provisions of section 14A read with Rule 8D of the I.T. Rules made the disallowance of Rs. 6,77,083/- to the income of the assessee. Since the assessee did not appear before the Ld. CIT(A), the Ld. CIT(A) following the decision of the Hon’ble Supreme Court in the case of CIT vs. BN Bhattacharya and other, 118 ITR 461 (SC) and the decision of the Hon’ble Madhya Pradesh High Court in the case of Estate of Late Tukojirao Holkar vs. CWT 223 ITR 480 (MP), dismissed the appeal of the assessee due to non prosecution.

Aggrieved by such order of the Ld. CIT(A), assessee is in appeal before the Tribunal.

Ld. Counsel for the assessee, at the outset submitted that the Ld. CIT(A) without affording adequate opportunity to the assessee, dismissed the appeal due to non prosecution. Further, she has not decided the appeal on merits. He submitted that in the interest of justice the assessee should be given one final opportunity to substantiate its case.

Ld. DR on the other hand, opposed the arguments advanced by the Ld. Counsel for the assessee and submitted that the order of the Ld. CIT(A) should be upheld.

We have heard the rival arguments made by both sides and perused the records. It is an admitted fact that due to non prosecution of the assessee, the Ld. CIT(A) was constrained to pass the exparte order. However, she has not decided the appeal on merits, as per the provisions of law under section 250(6) of the I.T. Act, 1961. Considering the totality of the facts and circumstances and in the interest of justice, we deem it appropriate to restore the issues to the file of the Ld. CIT(A) with the directions to grant one final opportunity to the assessee to substantiate its case and decide the issues as per facts and law. The assessee is also hereby directed to appear before the Ld. CIT(A) without seeking any adjournment, under any pretext, failing which, the Ld. CIT(A) is at liberty to pass an appropriate order, as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.

In the result, the Assessee’s Appeals is allowed for statistical purposes.