M/S. MARIGOLD IMPEX,MUMBAI vs. ACIT-20(2), MUMBAI

This appeal in A.Y.2013-14 arises out of the order by the ld. Commissioner of Income Tax (Appeals)-32, Mumbai in appeal No.CIT(A)-32/IT-243/20(2)/16-17 dated 04/10/2018 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 30/03/2016 by the ld. Asst. Commissioner of Income Tax-20(2), Mumbai (hereinafter referred to as ld. AO).

We find that one of the grounds raised by the assessee before us is that the notice of hearing was not received by the assessee from the ld. CIT(A).

None appeared on behalf of the assessee. We have heard ld. DR and perused the materials available on record. We find that the assessee is a partnership firm and had filed its return of income for the A.Y.2013-14 on 27/09/2013 declaring total income of Rs.2,06,67,350/-. The assessee is a firm carrying on business as trading wholesalers and exporters of household utensils. Pursuant to the survey action carried out in the business premises of the assessee u/s.133A of the Act on 23/12/2013 wherein the partner of the assessee firm had given a statement declaring additional income to cover up the discrepancy related to salary and purchases. Accordingly, the assessee firm had even filed its revised return of income declaring total income of Rs.3,48,97,353/- wherein salary of Rs.15,60,400/- and purchases of Rs.1,26,70,000/- were disallowed voluntarily by the assessee. We find that the assessment was completed u/s.143(3) of the Act by the ld. AO on 30/03/2016 determining total income at Rs.3,48,97,353/- i.e. accepting the income declared in the revised return. However, the assessee challenged this assessment before the ld. CIT(A). But before the ld. CIT(A), the assessee did not ensure its presence which forced the ld. CIT(A) to pass an exparte order confirming the assessment order. Before us, we find that assessee had raised a ground that notice of hearing was not received by it from the ld. CIT(A). In these facts and circumstances, in the interest of justice and fair play, we deem it fit and appropriate to restore this appeal to the file of the ld. CIT(A) for denovo adjudication in accordance with law. The assessee is at liberty to furnish all evidences in support of its ground before the ld. CIT(A). The assessee is also directed to co-operate with the ld. CIT(A) for expeditious disposal of the appellate proceedings and not to take any adjournment except due to exceptional or unavoidable circumstances. The grounds raised by the assessee are allowed for statistical purposes in terms of aforesaid observations.

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