ESCORTS CONSUMER CREDIT LTD.,NEW DELHI vs. DCIT, CO. CIRCLE - 1 (1), CHENNAI

Aforesaid appeals by assessee for Assessment Years (AY) 2007- 08 & 2008-09 arises out of the common order of learned Commissioner of Income Tax (Appeals)-9, Chennai [CIT(A)] dated 20-06-2019 in the matter of assessment framed by Ld. Assessing Officer [AO] u/s. 143(3)

At the time of hearing, none appeared for assessee. However, the assessee has filed written submissions to substantiate its case. The Ld. DR pointed out that the appellate order is an ex-parte order and pleaded for dismissal of appeals. Having considered assessee’s written submissions as well as the orders of lower authorities, our adjudication to the subject matter of appeals would be as under.

In the assessment for AY 2007-08, the assessee was saddled with disallowance u/s 40(a)(ia) for Rs.24.44 Lacs. Similarly, for AY 2008-09, the assessee was saddled with bad debt disallowance for Rs.629.50 Lacs and the repairs expenditure was treated as capital expenditure as against revenue expenditure claimed by the assessee. Though the assessee preferred further appeal, however, it failed to appear before Ld. CIT(A). Consequently the action of Ld. AO, for both the years, was upheld by way of common order dated 20-06-2019. Aggrieved, the assessee is in further appeal before us.

In the written submissions dated 12-10-2021, the assessee has filed synopsis and pleaded for another opportunity of hearing before learned first appellate authority. After considering the same, we accept the plea of the assessee and accordingly, restore the appeals, for both the years, back to the file of Ld. CIT(A) for fresh adjudication after affording reasonable opportunity of hearing to the assessee. The assessee, in turn, is directed to substantiate its stand failing which Ld. CIT(A) shall be at liberty to dispose-off the appeals on the basis of material on record.

Both the appeals stand allowed for statistical purposes.