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Income Tax Appellate Tribunal, KOLKATA ‘A’ BENCH, KOLKATA
Before: Shri P.M. Jagtap, Vice- & Shri Satbeer Singh Godara
Date of concluding the hearing : January 09, 2019 Date of pronouncing the order : January 09, 2020
O R D E R
Per Shri P.M. Jagtap, Vice-President:
This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-13, Kolkata dated 19th January, 2018 passed ex-parte, whereby he dismissed the appeal of the assessee.
The assessee in the present case is a partnership firm, which is engaged in the business of manufacturing and trading of iron and steel. The return of income for the year under consideration was filed by it on 05.09.2013 declaring total income of Rs.1,20,97,260/-. In the assessment completed under section 143(3) vide an order dated 10.03.2016, the following additions were made by the Assessing Officer to the total income of the assessee:- (i) Disallowance of interest Rs.46,56,868/- (ii) Bogus creditors Rs.35,42,249/- Assessment Year: 2013-2014 Maheshwary Steel Supply Co.
(iii) Difference in the balance of Rs.77,17,471/- loan creditor M/s. Srei Equipment Finance Pvt. Limited (iv) Disallowance of depreciation Rs. 81,899/- The Assessing Officer also did not allow the claim of the assessee for set off of business loss against the order under the Head “Capital Gain in the assessment completed under section 143(3) vide an order dated 10.03.2016.
Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) disputing the various additions/disallowance 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 ex-parte vide his appellate order dated 19.01.2018. 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. In support of the preliminary issue raised by the assessee challenging the impugned order passed by the ld. CIT(Appeals), the ld. Counsel for the assessee has filed an affidavit of the ex-partner of the assessee-firm explaining the non-compliance before the ld. CIT(Appeals) as under:- “1. That I am one of the partners of M/s Maheshwary Steel Supply Co. As such, I am competent to swear this affidavit on behalf of the said firm. 2. That the aforesaid firm being aggrieved with the assessment order dated 10.03.2016 filed an appeal before the Ld. CIT(A). 3. That the said appeal was dismissed by the ld. CIT(A) by passing an ex-parte order due to non-appearance of anyone Assessment Year: 2013-2014 Maheshwary Steel Supply Co.
on behalf of the said firm on the date fixed for hearing before the ld. CIT(A).
4. That Mr. S. S. Lohia, FCA/A.R or the assessee firm, was engaged in the instant matter to appear before the Ld. CIT(A).
5. That on various occasions the case was fixed and the Ld. A/R has taken adjournment. Thereafter, the Ld. CIT(A) fixed the case for hearing on 14.11,2017 and on the same day again adjournment petition was filed. lnspite of that the ld. CIT(A) passed an ex-parte order.
6. That I give an undertaking that proper compliances shall be made III case the abovementioned case is sent back to the file of the ld. CIT(A)”.
Keeping in view the averments made by the partner of the assessee- firm in the affidavit as above, we are satisfied that there was a sufficient cause for the non-appearance of the assessee when its appeal was called for hearing finally before the ld. CIT(Appeals) on 14.11.2017. Even the ld. D.R. has not disputed this position. We, therefore, set aside the impugned order passed by the ld. CIT(Appals) ex-parte 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. 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 January 09, 2020.