What did the Tribunal hold?

The Tribunal directed the CIT(A) to decide the issue afresh after providing the assessee an opportunity to be heard. The assessee was also instructed to cooperate and avoid unnecessary adjournments.

The assessee's appeal was decided ex-parte by the CIT(A) because the assessee claimed no notice was received. The Revenue stated the notice was returned as 'Not Found'.

What were the issues?

Whether the CIT(A) erred in passing an ex-parte order without ensuring proper service of notice on the assessee.

Tirupati Chemicals vs DCIT | ITAT Kolkata 2020

Income Tax Appellate Tribunal, “C”, BENCH KOLKATA

Before: SHRI J. S. REDDY, HON’BLE&

For Appellant: Shri Nirav Sheth, FCA

For Respondent: Shri Supriyo Pal, Addl. CIT

Hearing: 11/08/2020Pronounced: 12/08/2020

आदेश / O R D E R

Per Smt. Madhumita Roy, JM:

The instant appeal filed by the assessee is directed against the ex-parte order dated 28.11.2018 passed by the Learned Commissioner of Income Tax (Appeals)-17, Kolkata arising out of order dated 26.03.2016 issued by the DCIT, Circle-54, Kolkata under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for assessment year 2013-14.

Tirupati Chemicals Assessment Year:2013-14 2. At the time of hearing of the instant appeal, the Ld. Counsel appearing for the assessee submitted before us that no notice u/s 250 of the Act has been received by his clients and therefore he could not appear on the day fixed for hearing of the appeal before the First Appellate Authority and the Ld. CIT(A) passed the order ex-parte. However, he would like to represent his case afresh before the Ld. CIT(A) and therefore prayed before us for setting aside the issue before him. On the other hand, the Ld. D.R submitted that though the notice was sent, it was returned with an endorsement ‘Not Found’ and therefore the Ld. CIT(A) presumed that the company no longer exists at the given address and passed orders accordingly.

Having heard the Ld. Counsel appearing for the assessee and having regard to the facts and circumstances of the case, we, for the ends of justice think it fit and proper to afford an opportunity of being heard to the assessee by the Ld. CIT(A). Therefore, we direct the Ld. CIT(A) to decide the issue afresh upon giving an opportunity of being heard to the appellant and also upon taking into consideration the evidence on record or any other evidence which the appellant may choose to file at the time of hearing of the matter. However, we make it clear that the appellant will also co-operate with the Ld. CIT(A) without asking for any unnecessary adjournment.

In the result, the assesse’s appeal is allowed for statistical purposes.

Order pronounced in the Court on 12.08.2020

TIRUPATI CHEMICALS,KOLKATA vs. D.C.I.T.,CIRCLE-54, KOLKATA

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