CROWN BEERS INDIA PRIVATE LIMITED,HYDERABAD vs. ACIT CENTRAL CIRCLE-1(2), HYDERABAD

This appeal was last fixed for hearing on 31.5.2022 and at the request of the learned Counsel for the assessee, the hearing was adjourned to 12.7.2022. Subsequently, the notice was also sent through RPAD which was returned unserved by the postal authorities with the remarks “left”. None appeared on behalf of the assessee at the time of hearing when the name of the assessee was called. No petition seeking adjournment of the hearing was filed. Since the learned CIT (A) has passed an ex- parte order due to non-appearance before her, but has not decided the appeal on merit, therefore, we deem it fit and proper to decide the issue on the basis of material available on record and after hearing the learned DR.

Although a number of grounds have been raised by the assessee, however, these all relate to the ex-parte order of the learned CIT (A) in confirming the various additions made by the Assessing Officer.

Facts of the case in brief are that the assessee filed its return of income on 30.11.2016 declaring total loss of Rs.47,89,29,335/-. The Assessing Officer completed the assessment u/s 143(3) r.w.s. 144C of the I.T. Act, 1961 determining the total income of the assessee at Rs.1,36,216/- by making various additions/dis-allowances which consists of addition of Rs.4,34,85,498/- on account of depreciation on assets and Rs.1,36,216/- as TP adjustment on a/c of interest on delayed receivables. Since the assessee did not appear before the learned CIT (A), the learned CIT (A) in the ex-parte order passed by her sustained the additions/disallowance made by the Assessing Officer.

We have heard the learned DR and perused the record. A perusal of the order of the learned CIT (A) shows that the learned CIT (A) has not decided the appeal on merit but summarily dismissed the appeal on the ground that the assessee have chosen non-compliance to the notices issued by the Page 2 of 4 Department and has not sought any adjournment. As per the provisions of section 250(6) of the Act, the order of the CIT (A) in disposing of the appeal shall be in writing and shall state the points for determination, the decision thereon and the reason for the decision. However, in the instant case, a perusal of the order shows that the learned CIT (A) has not decided the appeal in the manner prescribed u/s 250(6) of the I.T. Act and has summarily dismissed the same for non-appearance. Considering the totality of the facts of the case and in the interest of justice, we deem it fit and proper to restore the issue to the file of the learned CIT (A) with a direction to give one last opportunity to the assessee to substantiate its case and decide the issue as per fact and law by passing a speaking order. The assessee is also hereby directed to appear before the learned CIT (A) and substantiate his case by filing the requisite information and without seeking any adjournment on any pretext failing which the learned CIT (A) is at liberty to pass appropriate order as per law. We hold and direct accordingly. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

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