What did the Tribunal hold?

The Tribunal found that the ex-parte decision by the CIT(A) and the AO's additions without a show cause notice violated principles of natural justice. Therefore, the assessee was granted one more opportunity to present its case.

The assessee's appeal was decided ex-parte by the CIT(A) as the assessee could not appear on hearing dates, claiming notices were not received. The assessee also contended that additions were made by the AO without a show cause notice.

What were the issues?

Whether the CIT(A) erred in deciding the appeal ex-parte without proper notice to the assessee, and whether the AO made additions without adhering to principles of natural justice.

Manidhwaj Polymers Pvt. Ltd vs ITO | ITAT Kolkata 2022

Income Tax Appellate Tribunal, “C” BENCH: KOLKATA

Before: Shri Rajesh Kumar & Shri Sonjoy Sarma]

31.08.2022 Date of Hearing / सुनवाई क- �त/थ Date of Pronouncement/ 06.09.2022 आदेश उ1घोषणा क- �त/थ For the Appellant/ Shri Akkal Dudhwewala, FCA �नधा�3रती क- ओर से For the Respondent/ Smt. Ranu Biswas, Addl. CITDR राज�व क- ओर से ORDER / आदेश Per Shri Rajesh Kumar, AM: This is an appeal preferred by the assessee against the order of the Ld. Commissioner of Income Tax(Appeals)-5, Kolkata (hereinafter referred to as the Ld. CIT(A)”] dated 16.12.2019 for the AY 2013-14.

At the outset, the Ld. Counsel for the assessee submitted that the Ld. CIT(A) has decided the appeal ex-parte as the assessee could not appear on various dates when the Ld. CIT(A) fixed this appeal for hearing. The Ld. Counsel submitted that the notices sent by the Ld. CIT(A) were not received by the assessee and therefore the these appeal of the assessee remained unattended before the Ld. CIT(A). The ld

Assessment Year: 2013-14 Manidhwaj Polymers Pvt. Ltd. Counsel for the assessee also submitted that the additions were made by the AO in the assessment order without issuing any show cause notice to the assessee. Finally the ld. Counsel of the assessee prayed before the Bench that the assessee may kindly be given one more opportunity to defend its case on merit by restoring this appeal to the file of the Ld. AO.

The Ld. D.R on the other hand strongly objected the prayers of the Ld. A.R by submitting that despite several opportunities granted, the assessee did not appear and therefore the said request of the counsel of the assessee may kindly be dismissed. On the issue of non issuing of any show cause notice , the ld DR argued that the assesse has appeared before the AO and was confronted with all the issues.

After hearing the rival parties and perusing the material on record, we observe that the assessee’s appeal was decided ex-parte by the ld CIT(A) when the assessee failed to turn up on the dates fixed for hearings. We also note that no show cause was issued by the AO before making additions which is also contrary to the established principles of natural justice. Therefore we are of the considered view that the assesse deserves to be given one more opportunity before the AO so that the justice could done to the assessee and issues could be decided after complying with the said principles. Accordingly we restore the appeal to the file of the Ld. AO with the directions to decide the same on merits by affording the assessee a reasonable opportunity of hearing. We also direct the assessee to cooperate in the disposal of this appeal.

In the result, all the appeal of the assessee is allowed for statistical purposes.

Order is pronounced in the open court on 6th September, 2022

MANIDHWAJ POLYMERS PVT. LTD,KOLKATA vs. ITO, WD. 9(1), KOLKATA

What did the Tribunal hold?

What were the facts?

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