What did the Tribunal hold?

The Tribunal held that the assessee was prevented from appearing before the CIT(A) by a sufficient cause due to the fault of a subordinate staff. Therefore, the order of the CIT(A) was set aside in the interest of natural justice.

The assessee's appeal was decided ex parte by the CIT(A) because the assessee's representative did not appear. The assessee's counsel claimed this was due to negligence of an office peon who failed to inform them about the notice.

What were the issues?

Whether an ex parte order passed by the CIT(A) should be set aside due to the assessee's inability to appear due to a staff member's negligence.

Image Nrman Pvt. Ltd. vs I.T.O., Ward-11(4) | ITAT Kolkata 2020

Income Tax Appellate Tribunal, “B(SMC

Before: Shri A. T. Varkey, JM]

Hearing: 20.01.2020Pronounced: 29.01.2020

This is an appeal preferred by the assessee against the order of Ld. CIT(A)-4, Kolkata dated 28-12-2018 for the assessment year 2014-15.

At the outset itself, the Ld. Counsel for the assessee submitted that the impugned order has been passed by the Ld. CIT(A) ex parte. According to the Ld. AR, he was not informed about the notice received by the office of the assessee due to the negligence on the part of the office Peon. Thus, for the fault of a staff of assessee, the assessee was prevented from appearing before the Ld. CIT(A). So, he urged before the bench to set aside the order of Ld. CIT(A) and restore the matter back to his file for fresh adjudication. The Ld. DR opposed the plea of the assessee and does not want us to give the assessee another opportunity.

3. Having heard both the parties, it is noted that the impugned ex parte order has been passed by the Ld CIT(A) since none appeared before him. According to me, the Ld. AR was prevented by sufficient cause for not appearing before the Ld. CIT(A) due to the negligence on the part of a subordinate staff of the assessee. For the fault of the office staff, the assessee cannot be penalized. Therefore, in the interest of Natural Justice and fair play, I am inclined to set aside the order of the Ld. CIT(A) and remand the matter back to the file of Ld. CIT(A) for de novo adjudication of appeal on merits after hearing the assessee in Image Nirman Pvt. Ltd., AY- 2014-15 accordance to law. The assessee is directed to participate in the appellate proceedings diligently without fail.

In the result, the appeal of assessee is allowed for statistical purposes.

Order is pronounced in the open court on 29th January, 2020.

IMAGE NRMAN PVT. LTD.,KOLKATA vs. I.T.O.,WARD-11(4), KOLKATA

What did the Tribunal hold?

What were the facts?

What were the issues?

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