HYAGREEVA HOTELS & RESORTS PVT. LTD,BENGALURU vs. ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE-3(1)(2), BENGALURU

(B)/2017 2 The order of the learned Assessing Officer in so 1. far as it is against the appellant, is opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. The Assessing Officer is not justified in 'opening 2. the file of the assessee u/s 148 beyond a period of four years where an assessment under sub- section (3) of section 143 has been made for the relevant assessment year. The Learned Assessing Officer is not justified in 3. making a disallowance of Rs 1,08,30,193/- u/s 36(1)(iii) of the Income Tax Act, 1961 under the facts and in the circumstances of the Appellant's case. The Assessing Officer has not considered the 4. valid explanation and case laws  given by your Appellant in this regard.

It has been submitted that assessee neither appeared nor filed any details/submissions before Ld.CIT (A) despite notices being issued. 3.1 Ld. CIT (A) therefore decided the issue based upon the observations of Ld. AO.

Assessee is now submitting before us that and opportunity may be granted to represent its case before Ld.CIT (A). 4.1 Ld.Sr.DR objected to the same and submitted that despite sufficient opportunity, assessee has failed to appear before Ld. CIT (A) to defend the additions made by Ld.AO. It has been submitted that assessee do not deserves an opportunity of being heard for the 2nd time under such circumstances. (B)/2017 3 5. We have perused submissions advanced by both sides in the light of the records placed before us. 5.1 Ld. AR admitted to the fact that assessee failed to appear before Ld. CIT (A) to represent its case. However the right of being heard cannot be denied to assessee. We are therefore of considered opinion to set aside the issue back to Ld. CIT (A) subject to cost of Rs. 5000/-payable by assessee. Assessee is directed to pay the cost to Karnataka Chief Minister’s Relief Fund. Upon filing the proof of cost having deposited in along with affidavit, the ld.CIT (A) is directed to issue notice of hearing to assessee. Assessee shall then file all requisite details in support of its claim which shall be verified by Ld. CIT (A) in accordance with law and decide the issue on merits by passing the speaking order. With the aforestated direction, we set aside appeal back to ld. CIT(A). Accordingly ground raised