ASTROL DEALCOM PVT. LTD.,KOLKATA vs. ITO, WARD 4(3), KOLKATA

This is an appeal preferred by the assessee against the order of the Principal Commissioner of Income Tax-2, Kolkata [hereinafter referred to as ‘PCIT’] passed u/s 263 of the Income Tax Act, 1961 (hereinafter referred to as the Act) dated 13.03.2020 for the assessment year 2010-11.

At the outset, the Ld. Counsel for the assessee submitted before the Bench that the order passed by the PCIT revising the assessment order is an ex-parte order. The Ld. Counsel for the assessee drew our attention to para no. 5 page no. 3 of the revisionary order wherein the Ld. PCIT has mentioned that no one appeared in response to notice dated 13.01.2020 and also subsequently even on the e-mail ID of the assessee several mails were sent but no one turn up nor any written submission is filed and accordingly the Ld. PCIT came to the conclusion the assessee has nothing to say in the matter and finally revised the order passed u/s 143(3) read with 147 of the Act dated 27.12.2017. The Ld. Counsel for the assessee submitted that the assessee has neither received any letter sent by the office the ld PCIT nor the emails as recorded by the ld PCIT in the revisionary order and therefore the proceeding before PCIT could not be attended. The Ld. A.R. drew our attention to the Affidavit filed before us making averments to the effect that neither notice of hearing nor emails were received. The Ld. A.R. therefore submitted that in the interest of justice the appeal may be restored to the file of the ld. PCIT so that the assessee could be heard on merits before disposal of the appeal.

The Ld. D.R. on the other hand, relied on the order of ld. PCIT by submitting that no one appeared despite several opportunities however left the issue to the wisdom of the Bench.

After hearing the rival contentions and perusing the material record including the revisionary order, we note that undisputedly the order u/s 263 of the Act was passed ex-parte as the ld. Counsel for the assessee failed to appear on the various dates fixed for hearing. Finally the PCIT revised the order passed by the AO u/s 143(3) read with Section 147 of the Act. We note that non appearance on the part of the assessee is attributable to non-receipt/service of notice on the assessee. In our opinion the ends of justice would be met if the assessee gets one more opportunity to present its case before the Ld. PCIT. Accordingly the revisionary order is set aside and issue is restored to the file of the Ld. PCIT with the direction to decide the same after affording a reasonable opportunity of hearing. Needless to say, that the assessee would cooperate in the revisionary proceedings failing on the date fixed for hearing with all defenses in its support.

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