VARDEEP PETRO CHEMICAL PVT LTD,CHENNAI vs. DEPUTY COMMISSIONER OF INCOME-TAX CORPORATE CIRCLE 3(2), CHENNAI, CHENNAI

The assessee is a private limited company and in the business of trading in engineering goods, chemicals, hydro carbons and its by- products or related products. The assessee-company filed its return of income declaring total income of Rs.1,37,61,890/-. The A.O in the assessment order u/s. 143(3) of the Act has assessed total income at Rs.46,45,84,277/- by making addition of Rs.45,08,22,387/-. Aggrieved by the same, the assessee preferred an appeal before the Ld. CIT(A).

However, the Ld. CIT(A) dismissed the appeal ex-parte as the assessee has not made any submission before him.

The Ld. Authorized Representative (A.R.) for the assessee submitted that the first notice was issued during the Covid-19 period on 28.01.2021, and since the main Director who was handling the matter was hospitalized, the assessee could not comply with the notices. It was therefore prayed that, in the interest of justice, one more opportunity may be granted to substantiate its case.

On the other hand, the Ld. Departmental Representative (DR), has relied on the orders of lower authorities.

We have heard the rival submissions, and perused the materials available on record. On perusal of the order of the Ld. CIT(A), we find that the Ld. CIT(A) has dismissed the appeal ex-parte as the assessee has not complied with the notices issued. Considering the submission of the assessee, and in the interests of natural justice, we are of the view that the assessee be provided with another opportunity of hearing to substantiate its case before the Ld. CIT(A). Accordingly, we set aside the order of the Ld. CIT(A) and remit the matter back to his file for fresh adjudication in accordance with law. We also direct the assessee to appear before the Ld. CIT(A) on the date of hearing without fail and furnish complete details for fresh consideration. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.