OSWAL UDHYOG ,MUMBAI vs. ACIT 17(2), MUMBAI

The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in confirming the disallowance made on account of foreign travel expenses in the sum of Rs.4,37,978/- in the facts and circumstances of the instant case.

None appeared on behalf of the assessee. We have heard ld. DR and perused the materials available on record. At the outset, we find that the ld. CIT(A) had disposed of this appeal exparte without seeking the presence of the assessee or his authorised representative. We also find that though the ld. CIT(A) had given four opportunities which are noted in para 4 of his order, which was not responded by the assessee but still we find that the ld. CIT(A) ought to have disposed of the appeal on merits. Considering the facts of the case, we find that the assessee deserves to be given more effective opportunity before the ld. CIT(A) and accordingly, deem it fit and appropriate to restore this appeal to the file of the ld. CIT(A) for denovo adjudication in accordance with law. Needless to mention that the assessee be given reasonable opportunity of being heard.

3.1. The assessee is also directed to cooperate with the ld. CIT(A) for expeditious disposal of this appeal and not to take adjournments except due to exceptional or unavoidable circumstances. The assessee is at liberty to furnish fresh evidences, if any, in support of his contentions. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

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