CURRENT SERVICES,NEW DELHI vs. ITO WARD-62(3), NEW DELHI

This appeal filed by the assessee is directed against the ex parte order dated 20th January, 2019 of the CIT(A)-14, New Delhi, relating to the assessment year 2010-11.

Although a number of grounds have been raised by the assessee, these all relate to the ex parte order of the CIT(A) in confirming the various additions made by the AO. 3. Facts of the case, in brief, are that the assessee is an individual. The case of the assessee was reopened on the ground that the assessee has not filed his return of income, but, as per Form No.26AS, an amount of Rs.92,85,288/- has been paid to the assessee on which TDS u/s 194C and 194I of the Act has been deducted. In response to the notice u/s 148, the assessee neither filed his return of income nor sought any adjournment. There was no compliance to the notices issued u/s 142(1) of the Act. The AO, therefore, completed the assessment u/s 144 of the Act on 28th December, 2017, determining the total income at Rs.11,60,653/-. Since none appeared before the CIT(A) despite opportunities granted by him, the ld.CIT(A), in his ex parte order, upheld the additions made by the AO. 4. Aggrieved with such order of the CIT(A), the assessee is in appeal before the Tribunal.

The ld. Counsel for the assessee, at the outset, submitted that sufficient opportunities have not been granted by the CIT(A) and he has also not decided the appeal on merit. She accordingly submitted that in the interest of justice the assessee should be given an opportunity to substantiate its case.

The ld. DR, on the other hand, opposed the arguments advanced by the assessee and submitted that the assessee is non-cooperative and was not appearing either before the AO or the CIT(A). Therefore, the order of the CIT(A) should be upheld.

We have considered the rival arguments made by both the sides and perused the material available on record. It is an admitted fact that despite opportunities granted by the AO, the assessee did not bother to appear before him for which he was constrained to pass the order u/s 144 of the Act. We find although the ld.CIT(A) has granted opportunity to the assessee, however, here also the assessee did not bother to appear before him and for which he has passed the ex parte order sustaining the additions made by the AO. However, it is seen that the ld.CIT(A) has simply dismissed the appeal for want of prosecution, but, has not decided the appeal on merit which he is required to do. Considering the totality of the facts and circumstances of the case and in the interest of justice, we deem it proper to restore the issue to the file of the CIT(A) with a direction to grant one final opportunity to the assessee to substantiate its case and decide the appeal on merit as per fact and law. The assessee is also hereby directed to appear before the CIT(A) and substantiate its case failing which the ld.CIT(A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. The grounds raised by the assessee are accordingly allowed for statistical purposes.