SAICARE INDIA PVT LTD,CHENNAI vs. DCIT CORPORATE CIRCLE-6(1), CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 15, Chennai dated 28.02.2019 relevant to the assessment year 2014-15. Besides challenging the confirmation of addition in the grounds of appeal, the ld. Counsel for the assessee has mainly challenged the ex-parte appellate order.

The above appeal is filed with a delay of 27 days, for which, the assessee has filed a petition in support of an affidavit for condonation of the delay, to which; the ld. DR has not raised any serious objection.

Brief facts of the case are that the assessee filed its return of income for the assessment year 2014-15 on 30.11.2014 declaring an income of ₹.1,01,86,350/-. The return was taken up for scrutiny and notice under section 143(2) of the Income Tax Act, 1961[“Act” in short] was issued and served on the assessee. Since the AR of the assessee could file only part of the details called for as the Managing Director of the assessee company was hospitalized, the assessment was completed on the basis of materials available on record and based on the information gathered during a survey under section 133A of the Act conducted at the business premises of the assessee under section 143(3) of the Act by assessing the total income of the assessee at ₹.1,84,95,365/- after making addition. On appeal, since there was no representation from the assessee, the ld. CIT(A) concluded the appellate order by confirming the addition.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that during the course of assessment proceedings, the AR of the assessee could not produce complete details due to non-availability of M.D. of the assessee company on medical grounds; the assessment order itself is an exparte order. It was further submission, that since the assessee was not given sufficient opportunities of being heard during the course of appeal proceedings, the ld. Counsel for the assessee prayed for suitable directions.

Per contra, the ld. DR has submitted that the assessee did not furnish any evidence to controvert the findings of the Assessing Officer. It was further submission that the assessee kept on seeking adjournment and therefore, the appeals has to be decided on merits. Despite notice of final hearing was duly served by post as well as by email, the assessee neither appeared nor furnished written submissions with supporting documents before the ld. CIT(A) and thus, pleaded for confirming the appellate order.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. As it is stated in the assessment order that the AR could file only part of the details called for as the Managing Director was hospitalized and also due to few other reasons, and based on the survey under section 133A of the Act, the Assessing Officer worked out the gross receipts on the details gathered during survey and completed the assessment without any explanations from the assessee. On appeal, the ld. CIT(A) has stated that final opportunity of hearing to the assessee to file the information was given on 22.02.2019 and it was duly served by post as well as by email. But, the assessee neither appeared nor furnished written submissions with supporting documents. However, no details of opportunities given to the assessee to represent the case are available in the appellate order. In the absence of any detailed reply from the assessee, the ld. CIT(A) concluded the appellate order with the available materials on record and confirmed the addition. In view of the above facts and circumstances, we are of the opinion that the assessee should be given one more opportunity of being heard to represent its case. Accordingly, we set aside the appellate order and direct the ld. CIT(A) to afford an opportunity of being heard to the assessee to represent the case and thereafter conclude the appellate order in accordance with law. The assessee is also directed to file complete details before the ld. CIT(A).