M/S. UTSAV FASHION PRIVATE LIMITED,KOLKATA vs. I.T.O.,WARD-59(4), (T.D.S.), KOLKATA

- This assessee’s appeal for assessment year 2012-13 arises against the Commissioner of Income Tax (Appeals)-24, Kolkata’s order dated 28.12.2018 passed in case No.1284/CIT(A)-24/Kol/2014-15 involving proceedings 201(1) r.w.s.201(1A) of the Income Tax Act, 1961; in short ‘the Act’. Heard both the parties. Case file(s) perused.

We notice at the outset that the CIT(A)’s order under challenge affirming the Assessing Officer’s action treating the assessee in default for not having deducted TDS on various payments made to the tune of ₹14,36,524/-; has been passed ex parte. Learned counsel’s only case before us during the course of hearing is that the assessee’s lower appeal had been transferred to CIT(A)-24 Kolkata without any Assessment Year 2012-13 M/s Utsav Fashion Pvt. Ltd. Vs ITO Wd-59(4),(TDS) Kol. Page 2 corresponding service of hearing notice served on the taxpayer. He then took us para-4 page-3 in CIT(A)’s order to buttress foregoing plea of violation of principle of natural justice. There is no rebuttal to this clinching fact coming from the Revenue side. We observe in this factual backdrop that the assessee’s non appearance before the CIT(A) during the course of lower appellate proceedings was neither intentional nor deliberate but on account of lack of service only. We therefore deem it appropriate in these facts and circumstances that larger interest of justice would be met in case the CIT(A) once again re-adjudicates the entire issue afresh as per law within three effective opportunities of hearing. The assessee itself is directed to appear before the CIT(A) on or before 15.12.2020 for further consequential proceedings.