FAIRLAND DEVELOPMENT (P) LTD. (NOW FAIRLAND DEVELOPMENT INDIA LTD.),KOLKATA vs. I.T.O.,WARD-10(2), KOLKATA

The assessee in the present case is a Company, which is engaged in the business of land development. The return of income for A.Y. 2010-11 was filed by it on 05.10.2010 declaring total income of Rs.1,02,898/-. In the assessment originally completed under section 144 vide an order 1 & 307/KOL/2020 Assessment Years: 2010-2011 & 2011-2012 Fairland Development (P) Limited (now Fairland Development India Limited) dated 23.03.2013, the total income of the assessee was determined by the Assessing Officer at Rs.25,61,950/-. The said assessment was subsequently set aside by the concerned ld. CIT vide an order under section 263 with a direction to the Assessing Officer to make the assessment afresh on certain points specified by him in the order under section 263. Accordingly a fresh assessment was made by the Assessing Officer under section 144 read with section 263 vide an order dated 16.03.2016 determining the total income of the assessee at Rs.36,16,280/-. As noticed by the Assessing Officer, no return of income for A.Y. 2011-12 was filed by the assessee. He, therefore, issued a notice under section 148. There was, however, no compliance on the part of the assessee to the said notice issued under section 148 as well as subsequent notices issued under section 143(3) and 142(1) of the Act. The Assessing Officer, therefore, completed the assessment under section 144/147 of the Act vide an order dated 21.03.2016, wherein the addition of Rs.1,20,00,000/- was made by the Assessing Officer to the total income of the assessee on account of unexplained investment made in the purchases of immovable property.

Against the order passed by the Assessing Officer under section 144 read with section 263 for A.Y. 2010-11 and the order passed under section 144/147 for A.Y. 2011-12, appeals were preferred by the assessee before the ld. CIT(Appeals) and since there was no satisfactory compliance on the part of the assessee to the notices issued by him fixing the said appeals for hearing from time to time, the ld. CIT(appeals) dismissed the said appeals of the assessee for non-prosecution vide his two separate appellate orders both dated 27.12.2019 passed ex-parte. Aggrieved by the orders of the ld. CIT(Appeals), the assessee has preferred these appeals before the Tribunal. & 307/KOL/2020 Assessment Years: 2010-2011 & 2011-2012 Fairland Development (P) Limited (now Fairland Development India Limited)

We have heard the arguments of both the sides and also perused the relevant material available on record. In support of the preliminary issue raised by the assessee in these appeals challenging the impugned orders passed by the ld. CIT(Appeals) ex-parte dismissing the appeals of the assessee for non-prosecution, the ld. Counsel for the assessee has submitted that none of the notices stated to be issued by the ld. CIT(Appeals) fixing the appeals of the assessee on four different dates was ever received by the assessee and such non-receipt of notices resulted into non-compliance on the part of the assessee before the ld. CIT(Appeals). Keeping in view this submission made by the assessee, which is duly supported by an affidavit filed by the Director of the assessee-company affirming the relevant facts on oath, we are satisfied that there was a sufficient cause for the non-compliance of the assessee when its appeals were called for hearings before the ld. CIT(Appeals). Even the ld. D.R. has not raised any objection in this regard. Moreover, the ld. CIT(Appeals) as per the provisions of sub-section (6) of section 250 was required to dispose of the appeals 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 orders passed by the ld. CIT(Appeals) do not comply with these requirements. We, therefore, consider it fair and proper and in the interest of justice to set aside the impugned orders passed by the ld. CIT(Appeals) ex-parte dismissing the appeals of the assessee for non-prosecution and remit the matter back to him for disposing of the appeals of the assessee afresh on merit in accordance with law after giving proper and sufficient opportunity of being heard to 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 appeals afresh expeditiously. & 307/KOL/2020 Assessment Years: 2010-2011 & 2011-2012 Fairland Development (P) Limited (now Fairland Development India Limited)

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