IFMR HOLDINGS PRIVATE LIMITED,CHENNAI vs. JCIT (OSD) CORPORATE CIRCLE 2(2), CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 5, Chennai, dated 21.02.2019 relevant to the assessment year 2014-15. Besides challenging the issue on merits, the assessee has mainly challenged the ex-parte order passed by the ld. CIT(A).

Brief facts of the case are that the assessee filed return of income for the assessment year 2014-15 on 23.09.2014 admitting loss of ₹.17,74,540/- claiming the loss as business loss. The Assessing Officer completed the assessment under section 143(3) of the Income Tax Act, 1961 [“Act” in short] on 07.12.2016 by making disallowance of business loss amounting to ₹.17,74,750/-, against which, the assessee preferred appeal before the ld. CIT(A). Despite issuance of various notices, none appeared on behalf of the assessee and hence the ld. CIT(A) dismissed the appeal filed by the assessee.

On being aggrieved, the assessee is in appeal before the Tribunal. The ld. Counsel for the assessee has submitted that the ld. CIT(A) has not given sufficient opportunity of being heard to the assessee as well as adjudicated the issue raised in the appeal on merits and prayed that the ld. CIT(A) may be directed to adjudicate the issues on merits by giving one more opportunity of being heard to the assessee for presenting its case before the appellate authority. On the other hand, the ld. DR seriously objects to the submissions of the ld. Counsel by stating that the ld. CIT(A) has given sufficient opportunities, but, the assessee has not availed by presenting its case before the ld. CIT(A).

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Against the disallowance of business loss made by the Assessing Officer, the assessee preferred further appeal before the ld. CIT(A). On perusal of the appellate order, we find that despite issuance of various notices, none appeared on behalf of the assessee. Since, there was no response from the assessee after receipt of hearing notice, the ld. CIT(A) confirmed the assessment order. Except reproducing the grounds raised by the assessee and reproducing the relevant paragraph of the assessment order, the ld. CIT(A) has not discussed anything about the issue in appeal or adjudicated the issue on merits. The First Appellate Authority is expected to appreciate the material available on record irrespective of the fact whether the assessee appeared before him or not and give his own findings in the conclusion reached by him. In this case, it is very clear that the ld. CIT(A) has not applied his mind to the material available on record. Thus, we remit the matter back to the file of the ld. CIT(A) to adjudicate the issue on merits by affording one more opportunity of being heard to the assessee as prayed before the Tribunal.

In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced on the 05th December, 2019 in Chennai.