MONOLISHA SUPPLIERS PVT. LTD.,KOLKATA vs. DCIT, CIR.11(1), KOLKATA

The assessee in the present case is a company which is mainly engaged in dealing in shares and securities as well as mutual funds through portfolio management system. The return of income for the year under consideration was filed by it on 27/09/2014, declaring total income of Rs.1,52,68,380/-. In the said return of income, profit from the purchase and sale of units of mutual funds and shares, was declared by the assessee as short term capital gain. In the assessment completed u/s 143(3) of the Act vide order dt. 29/09/2016, the said profit of Rs.24,84,101/- declared by the assessee as short term capital gains, was treated by the Assessing Officer as business income.

The action of the Assessing Officer in treating the profit from purchase and sale of units of mutual funds and shares as business income instead of short term capital gain, was challenged by the assessee in the appeal filed before the ld. CIT(A) and since there was no compliance on the part of the assessee to the notices issue by him fixing the appeal for hearing on three different occasions, the ld. CIT(A) dismissed the appeal

Assessment Year: 2014-15 Monolisha Suppliers Pvt. Ltd of the assessee for non-prosecution vide his appellate order dt. 23/01/2020 passed prosecution vide his appellate order dt. 23/01/2020 passed prosecution vide his appellate order dt. 23/01/2020 passed ex- parte. Aggrieved by the said order by the said order, the assessee has preferred this appeal before the , the assessee has preferred this appeal before the Tribunal.

At the outset, it is noted that there is a delay of 103 days At the outset, it is noted that there is a delay of 103 days on the part of the on the part of the assessee in filing of this appeal before the Tribunal. In this regard, th in filing of this appeal before the Tribunal. In this regard, th in filing of this appeal before the Tribunal. In this regard, the assessee has moved an application seeking condonation of the said delay on the ground that due to moved an application seeking condonation of the said delay on the ground that due to moved an application seeking condonation of the said delay on the ground that due to sudden announcement of lockdown to control the spread of COVID sudden announcement of lockdown to control the spread of COVID-19 virus during the 19 virus during the relevant period, the appeal could not be filed within the specified perio relevant period, the appeal could not be filed within the specified perio relevant period, the appeal could not be filed within the specified period. Keeping in view this reason given by the assessee, we are satisfied that there was sufficient cause view this reason given by the assessee, we are satisfied that there was sufficient cause view this reason given by the assessee, we are satisfied that there was sufficient cause for the delay of 103 days in filing of this appeal before the Tribunal. for the delay of 103 days in filing of this appeal before the Tribunal. Even the ld. D/R has Even the ld. D/R has not raised any objection in this regard. The said delay is a not raised any objection in this regard. The said delay is accordingly condoned. ccordingly condoned.

At the time of hearing fixed in this case today, none At the time of hearing fixed in this case today, none has appeared on behalf of the appeared on behalf of the assessee. This appeal of the assessee is, therefore, being disposed off after hearing the his appeal of the assessee is, therefore, being disposed off after hearing the his appeal of the assessee is, therefore, being disposed off after hearing the arguments of the ld. D/R and perusing the relevant materi arguments of the ld. D/R and perusing the relevant material available on record. As al available on record. As pointed out by the ld. D/R, the address given by the assessee in Form No. 36 is different pointed out by the ld. D/R, the address given by the assessee in Form No. 36 is different pointed out by the ld. D/R, the address given by the assessee in Form No. 36 is different from the address mentioned by the ld. CIT(A) in his impugned order. She ha from the address mentioned by the ld. CIT(A) in his impugned order. She ha from the address mentioned by the ld. CIT(A) in his impugned order. She has contended that there was thus apparently apparently a change in the address of the assessee company and s of the assessee company and since the same was not informed to the office of the ld. CIT(A), the notice since the same was not informed to the office of the ld. CIT(A), the notice since the same was not informed to the office of the ld. CIT(A), the notices of hearing were sent to the old address of the assessee. It is thus clear that the notices of hearing were sent to the old address of the assessee. It is thus clear that the notices of hearing were sent to the old address of the assessee. It is thus clear that the notices of hearing sent by the ld. CIT(A) to the old address of th sent by the ld. CIT(A) to the old address of the assessee company were not served on the e assessee company were not served on the assessee company and the same and the same, therefore, could not be complied with. Moreover, as , therefore, could not be complied with. Moreover, as pointed out by the assessee in Ground No. 2 of this appeal, the appeal filed by the pointed out by the assessee in Ground No. 2 of this appeal, the appeal filed by the pointed out by the assessee in Ground No. 2 of this appeal, the appeal filed by the assessee before the ld. CIT(A) was not disposed assessee before the ld. CIT(A) was not disposed off on merit and this position, off on merit and this position, clearly evident from the order of the ld. CIT(A), is not disputed by the ld. D/R. As per the the order of the ld. CIT(A), is not disputed by the ld. D/R. As per the the order of the ld. CIT(A), is not disputed by the ld. D/R. As per the specific provisions contained in sub specific provisions contained in sub-section (6) of Section 250 of the Act, the ld. CIT(A) section (6) of Section 250 of the Act, the ld. CIT(A) is required to dispose off an appeal of is required to dispose off an appeal of the assessee by an order in writing assessee by an order in writing stating therein the points for determination, the decision thereon and the reasons for decision. The the points for determination, the decision thereon and the reasons for decision. The the points for determination, the decision thereon and the reasons for decision. The impugned order passed by the ld. CIT(A) clearly does not comply with these impugned order passed by the ld. CIT(A) clearly does not comply with these impugned order passed by the ld. CIT(A) clearly does not comply with these requirements. We, therefore, consider it just and proper to set aside the impug requirements. We, therefore, consider it just and proper to set aside the impug requirements. We, therefore, consider it just and proper to set aside the impugned order passed by the ld. CIT(A) ex-parte dismissing the appeal of the assessee for non dismissing the appeal of the assessee for non- prosecution and remit the matter back to him for disposing off the appeal of the prosecution and remit the matter back to him for disposing off the appeal of the prosecution and remit the matter back to him for disposing off the appeal of the Assessment Year: 2014-15 Monolisha Suppliers Pvt. Ltd assessee afresh on merits in accordance with law assessee afresh on merits in accordance with law after giving the assessee a proper a after giving the assessee a proper and sufficient opportunity of being heard. The assessee is directed to make due complian sufficient opportunity of being heard. The assessee is directed to make due complian sufficient opportunity of being heard. The assessee is directed to make due compliance before the ld. CIT(A) and exten extend all the possible co-operation in order to enable the ld. in order to enable the ld. CIT(A) to dispose off the appeal afresh expeditiously. CIT(A) to dispose off the appeal afresh expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical e appeal of the assessee is treated as allowed for statistical e appeal of the assessee is treated as allowed for statistical purposes. Kolkata, the Kolkata, the 9th day of August, 2021.