SHRINATH NAGARI SAHAKARI PAT SANSTHA ,PUNE vs. PRINCIPAL COMMISSIONER OF INCOME-TAX -4, PUNE

This appeal by the assessee against the order dated 31-03-2021 passed by the Principal Commissioner of Income Tax-4, Pune (‘PCIT’) for assessment year 2015-16.

At the outset, the ld. AR submitted that the order passed by the ld. PCIT is an ex-parte order. The ld. PCIT went on to pass an order based on the material available on record namely, statement of facts and grounds of appeal as per Form-35 while filing the appeal before the First Appellate Authority. The ld. AR prayed that one final opportunity may be provided to the assessee so that the appeal be discussed and represented on merits before the ld. PCIT and prayed to restore to the file of ld. PCIT.

On the other hand, the ld. DR submitted that once the appeal is decided as per materials available on record, there was no need for the assessee to again go back to the ld. PCIT.

Heard both the parties and perused the material available on record. We note that it is an ex-parte order where rights and liabilities of the assessee were not adjudicated upon. Since there was no appearance on record by the assessee and order of ld. PCIT was based only on materials available on records i.e. statement of facts, grounds of appeal filed by the assessee and the assessment order. We are of the opinion that the assessee should be given one final opportunity to defend its case through proper documentary evidences. In the interest of justice, we therefore, set aside the order of ld. PCIT and restore the matter to his file for adjudication and pass order after providing reasonable opportunity of hearing to the assessee. The assessee is liberty to file evidence, if any, in support of its claim and the PCIT shall consider the same.

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