M/S PROSIM RESEARCH AND DEVELOPMENT PRIVATE LIMITED,BANGALORE vs. THE INCOME TAX OFFICER WARD-5(1)(3), BANGALORE

O R D E R PER D.S. SUNDER SINGH, A.M. : This appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)-5, Bengaluru (hereafter referred as “CIT(A)”) in 5/2016-17 dated 27/02/2018 for the assessment year 2014-15.

are related to the addition of Rs. 1,13,59,703/- u/s. 40(a)(ia) of the Income Tax Act, 1961 ("the Act"). The assessee filed return of income declaring at total income of Rs. 60,68,280/- on 29.11.2014 and the assessment was completed on total income of Rs. 1,74,27,983/- by an order dated 26.12.2016. The Assessing Officer (AO) made the addition of Rs. 1,13,59,703/- for the assessee’s failure to deduct tax at source u/s. 195 of the Act. The assessee went on appeal before the ld. CIT(A) and the ld. CIT(A) decided the appeal exparte following the decision of Hon’ble High Court of Delhi in the case of CIT v. Multiplan India Ltd.

38. ITD 320. Against which, the assessee filed appeal before us.

3. We heard the rival submissions and perused the material placed on record. In the instance case, the ld. CIT(A) decided the appeal exparte following the decision of Multiplan India Ltd., supra and the ld. CIT(A) did not consider the merits while disposing the appeal. As per the provisions of the Act, the ld. CIT(A) is bound to pass order on merits even there is no response from the assessee. Therefore, in the interest of justice, we remit the matter back to the file of ld. CIT(A) to afford opportunity to the assessee to decide the appeal on merits. The ld. DR assured that he will co-operate with the ld. CIT(A) and furnish all the information required for disposal of the appeal. Accordingly, the appeal is allowed for statistical purpose.

Order pronounced in the open court on 29th November, 2019.