SUHIR FINANCE AND CHITS PVT. LTD.,NEW DELHI vs. ITO, WARD- 24(3), NEW DELHI

That on the facts and circumstances of the case and the provisions of law, the Ld CIT Appeal has erred in passing the appellate order in violation of the principles of natural justice as no show cause notice was issued to the appellant company before sustaining the addition.”

The ld. AR inviting attention to para 4 of the impugned order submitted that the assessee had made a prayer before the CIT(A) to await the decision of the CIT(A) on similar issue pertaining to the earlier year, however, despite the prayer Page 1 of 4

The Ld. Sr. DR, on the other hand, refer to para 4 of the impugned order submitted that it appears that the appeal of the assessee was decided ex-parte as the said prayer of the assessee was not accepted. Accordingly in the circumstances prayer for adjournment was opposed and it was his prayer that the issue may be remanded to the CIT(A) for an opportunity of being heard.

I have heard the parties and perused the material available on record. It is seen that the addition made by the Assessing Officer by an order u/s 143(3) in the present proceedings was challenged before the ld. CIT(A). The CIT(A) rejected the prayer for deferring the appeal for some time and has confirmed the addition made by the Assessing Officer. Accordingly admittedly the present appeal has been passed without granting effective opportunity of being heard to the assessee. Accordingly in the interest of substantial justice, the impugned order is set aside back to the file of the ld. CIT(A) with the direction to pass a speaking order in accordance with law after giving the assessee a reasonable opportunity of being heard. Said order was pronounced in the open Court at the time of hearing itself.

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