What did the Tribunal hold?

The ITAT held that the CIT(A) failed to decide the appeal on merits and violated the principles of natural justice by not considering the assessment order and records. The matter was set aside for fresh adjudication.

The assessee's appeal before the CIT(A) was decided ex parte as the assessee did not appear. The CIT(A) confirmed the additions made by the Assessing Officer without considering the assessment records.

What were the issues?

Whether the CIT(A) erred in deciding the appeal ex parte without considering the assessment records and whether the principles of natural justice were violated.

Multiple Resorts Pvt. Ltd. vs I.T.O.Ward-8(1) | ITAT Kolkata 2020

Income Tax Appellate Tribunal, “A”

Before: SHRI A. T. VARKEY, JM & DR. A.L. SAINI, AM

For Respondent: Shri Ram Bilash Meena, CIT-DR

Hearing: 19/08/2020Pronounced: 16/09/2020

Per Dr. A. L. Saini, AM: The captioned appeal filed by the assessee, pertaining to Assessment Year 2012-13, is directed against the order passed by the ld. Commissioner of Income Tax(Appeals)-18, Kolkata dated 02.05.2018 which in turn arises out of an assessment order passed by Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’),dated 24.03.2015. 2. At the outset itself we note that the ld. CIT(A) has passed the order observing as follows:

“3. As can be seen from the nature of additions/disallowances in the grounds of appeal, the issues involved are factual in nature and require verification before arriving at the final conclusion. As the assessee has not attended to the appeal proceedings, necessary evidences in support of the assessee’s contentions Assessment Year: 2012-13

have not been verified. Under the circumstances I am left with no option but to confirm the additions/disallowances made by the assessing officer.”

From the above order of ld CIT(A), we note that assessee did not appear before him during the appellate proceedings therefore ld CIT(A) has passed an ex parte order. We note that in this case assessment order was framed by the assessing officer u/s 143(3) of the Income Tax Act 1961 dated 24.03.2015. During the assessment proceedings, the assessee furnished before the assessing officer, the books of accounts, details and documents which were scrutinized and examined by the Assessing Officer issue-wise and addition was made by the assessing officer issue-wise. The ld. CIT(A) did not consider the assessment order and assessment records to adjudicate the various issues on merits. Also, we are not aware whether notices for hearings, during the appellate proceedings, were served on the assessee or not. It is the statutory right of the assessee provided in the Act to file the appeal before the ld. CIT(A) therefore, the ld. CIT(A) ought to have decided the assessee’s appeal on merits. Since the ld. CIT(A) did not decide the appeal on merits and did not consider the assessment order and assessment records while adjudicating the appeal, therefore it is against the principle of natural justice. Therefore, we set aside the order of the ld. CIT(A) and remit the matter back to the file ld. CIT(A) for afresh adjudication on merits.

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

Order pronounced in the open court on this 16/09/2020. (A. T. Varkey) (A. L. Saini) "ाियक सद" / JUDICIAL MEMBER लेखा सद" / ACCOUNTANT MEMBER कोलकाता /Kolkata; Dated: 16/09/2020 RS Assessment Year: 2012-13

आदेश की "ितिलिप अ"ेिषत/Copy of the Order forwarded to : 1. अपीलाथ" / The Appellant- Multiple Resorts Pvt. Ltd.

""थ" / The Respondent.- ITO, Ward-8(1), Kolkata आयकर आयु"(अपील) / The CIT(A), 3. 4. आयकर आयु" / CIT िवभागीय "ितिनिध, आयकर अपीलीय अिधकरण, कोलकाता / DR, ITAT, Kolkata 5. गाड" फाईल / Guard file. 6. //// By Order

MULTIPLE RESORTS PVT. LTD.,KOLKATA vs. I.T.O.WARD-8(1), KOLKATA

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