LOGANATHAN SENTHILKUMARAN,CHENNAI vs. ADDITIONAL / JOINT/ DEPUTY/ASISSTANT COMMISSIONER OF INCOME TAX / ITO, DELHI

When the appeal was taken up for hearing, none appeared on behalf of the assessee and accordingly, the hearing was proceeded with the able assistance of Ld. D.R.

The assessee is engaged in the business of gas agency under the name and style of M/s. His Grace Agency, a dealer of Hindustan Petroleum Corporation Ltd. The assessee had filed return of income on 01.10.2014 declaring a total income of Rs.1,42,870/-. The assessment was reopened u/s. 147 of the Act based on a discrepancy between the total purchases as per the sale order report issued by HPCL and the books of account maintained by the assessee.

Consequently, the A.O passed an order u/s. 147 of the Act making an addition of Rs.19,11,081/-. Aggrieved by the said addition, the assessee preferred an appeal before the Ld. CIT(A), who passed the order ex-parte due to non-compliance with notices and dismissed the appeal without adjudicating the issues on merits.

The Ld. Departmental Representative (DR), relied on the orders of lower authorities and submitted that the orders were passed ex- parte as the assessee has been non compliance to the notices issued.

We have heard the submissions of the Ld. DR and perused the material available on record. On perusal of the order of the Ld. CIT(A), we find that the appeal was dismissed solely on the ground of non- compliance by the assessee, without dealing with the merits of the additions made by the AO. In our considered view, the Ld. CIT(A) ought to have adjudicated the matter on merits, especially in the context of a reopened assessment involving factual issues. In the interest of justice, we deem it fit to set aside the orders passed by the A.O and the Ld. CIT(A) and remit the matter back to the file of the Ld. CIT(A) to decide the appeal on merits. The Ld. CIT(A) shall pass a reasoned order after providing due opportunity of hearing to the assessee, in accordance with law. We also direct the assessee to co- operate with the proceedings and appear before the Ld. CIT(A) on the date of hearing without fail. In view of the above, the appeal filed by the assessee is allowed for statistical purposes only.

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