SOUTHOPEN INFRANIRMAN CONSULTANTS PRIVATE LIMITED,KOLKATA vs. ITO, WARD 9(1), , KOLKATA

This appeal filed by the assessee is directed against the order of the National Faceless Appeal Centre [hereinafter referred to as ‘CIT(A)’] dated 01.04.2025 passed under Section 250 of the Income-tax Act, 1961 (hereinafter referred to as “the Act”).

Brief facts of the case are that the assessee has filed return of income for the assessment year 2018-19 declaring total income of Rs.60440/-. On information received that the assessee company had received accommodation entry of Rs.28,00,000/- routed through the bank account of M/s Strong Well Commodeal Pvt. Ltd. during the F.Y 2017-18. Later on, the case of the assessee was reopened u/s 147 by issuing notice u/s 148 as to believe by the Assessing Officer that the said income of the had escaped assessment. Thereafter, notices u/s 143(2) and 142(1) of the Act were issued to the assessee to furnish necessary details to prove the source the deposit in the bank amount.

Dissatisfied with the above order, the assessee preferred an appeal before the ld. CIT(A), where the ld. CIT(A) passed an ex parte order by simply upholding the order of the Assessing Officer by dismissing the appeal of the assessee.

Aggrieved by the above order, the assessee is in appeal before this Tribunal raising various grounds. However, the contention of the ld. AR is that the ld. CIT(A) passed an ex parte order without considering the case on merits, which is not justified, therefore, she prayed for one more opportunity may be granted.

On the other hand, the ld. DR stated that the assessee is a habitual defaulter and did not comply to the notices issued by the lower authorities, therefore, the appeal of the assessee may be dismissed in limine.

We, after hearing both the parties and perusing the materials available on record, find that in the present case, since the impugned order of the ld. CIT(A) did not consider the submission made by assessee, therefore, in the interests of justice, it is necessary to remand back the whole issue to the file of the ld. CIT(A) with a direction to re- examine the issue on merits after affording reasonable opportunity of being heard to the assessee. The assessee is also directed to comply with the notices issued by the ld. CIT(A) as and when asked for without any fail and in case, the assessee fails to appear in remand proceedings, the ld. CIT(A) may pass a speaking order in accordance with law on the basis of materials available on record.