TANTIA CONSTRUCTIONS LIMITED,KOLKATA vs. A.C.I.T.,CIRCLE-12(2), KOLKATA

The assessee in the present case is a Company, which is engaged in the business of civil construction. The loss return for the year under consideration was filed by it on 15.10.2016. In the assessment completed under section 143(3) vide an order dated 19.12.2018, the following additions were made by the Assessing Officer to the total income of the assessee:-

(i) Disallowance of retention Rs.12,23,16,255/- money (ii) Disallowance of deduction Rs. 7,39,49,596/- under section 80IA (iii) Disallowance of belated Rs. 54,59,292/- payment of employees contribution towards P.F. & ESI (iv) Disallowance of interest Rs. 32,29,065/- under section 201(1A)

Aggrieved by the order of the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) challenging all the four additions made by the Assessing Officer and since there was no satisfactory compliance on the part of the assessee to the notices issued by him fixing the said appeal for hearing from time to time, the ld. CIT(Appeals) dismissed the appeal of the assessee for non-prosecution vide his appellate order dated 24.12.2019 passed ex-parte. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. It is observed that the appeal of the assessee was fixed for hearing by the ld. CIT(Appeals) on six different dates and although the ld. Counsel for the assessee has submitted that the adjournments were sought by the assessee by filing applications in most of the said dates, it is observed that the approach of the assessee during the course of appellate proceedings before the ld. CIT(Appeals) was casual and non-compliant. As noted by the ld. CIT(Appeals) in his impugned order, there was no response at all from the assessee’s side to some of the notices of hearings sent by him. Nevertheless, the ld. CIT(Appeals) as per the provisions of sub-section (6) of section 250 was required to dispose of the appeal of the assessee vide an order in writing stating the points for determination, the decision thereon and the reasons for the decision. It is observed that the impugned order passed by the ld. Assessment Year: 2016-2017 Tantia Constructions Limited CIT(Appeals) does not comply with these requirements. Keeping in view all these facts and circumstances of the case, we are of the view, it would be fair and proper and in the interest of justice to set aside the impugned order passed by the ld. CIT(Appeals) ex-parte dismissing the appeal of the assessee for non-prosecution and remit the matter back to him for disposing of the appeal of the assessee afresh on merit in accordance with law after giving one more opportunity of being heard to the assessee subject to the payment of cost of Rs.5,000/- by the assessee. As undertaken by the ld. Counsel for the assessee, the assessee shall make due compliance before the ld. CIT(Appeals) and shall extend all the possible cooperation in order to enable the ld. CIT(Appeals) to dispose of the appeal afresh expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on June 11, 2020.