MR. TEJRAJ JAIN (HUF),CHENNAI vs. ITO, NCW - 10 (4), CHENNAI

This appeal filed by the assessee is directed against the order of the ld. Commissioner of Income Tax (Appeals) 12, Chennai, dated 18.06.2019 relevant to the assessment year 2009-10. Besides challenging the issue on merits, the assessee has mainly challenged the ex-parte order passed by the ld. CIT(A).

With regard to the delay of one day in filing the appeal, the ld. Counsel for the assessee has submitted that immediately after the date of service of 2 appellate order on 21.06.2019 (Friday), 22nd & 23.06.2019 were closed holidays, which was reckoned in calculating sixty days’ time period and thereby determined delay of one day and thus, there was no delay in filing the appeal against which the ld. DR has not raised any serious objection. Consequently, we admit the appeal for hearing and adjudication.

Brief facts of the case are that the assessee filed return of income for the assessment year 2009-10 on 06.11.2009 admitting an income of ₹.2,53,900/- claiming exemption of long term capital gains of ₹.10,33,200/-. The return was processed under section 143(1) of the Income Tax Act, 1961 [“Act” in short]. On the basis of information received from the DDIT (Inv.), the Assessing Officer reopened the case under section 147 r.w.s. 144 of the Act and completed the assessment by making addition under section 68 of the Act, 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 adjudicated the issues 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 3 appellate authority. On the other hand, the ld. DR did not seriously objected to the submissions of the ld. Counsel.

We have heard both the sides, perused the materials available on record and gone through the orders of authorities below. Against the addition, 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, the ld. CIT(A) has not discussed anything about the grounds raised or adjudicated the issues on merits. 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.