N.N. ISPAT PVT. LTD., ,KOLKATA vs. DCIT, CIRCLE - 2(2), KOLKATA , KOLKATA

The assessee in the present case is a Company, which is engaged in the business of manufacturing of M.S. Ingot and M.S. Billet. The return of income for the year under consideration was filed by it on 30.09.2013 declaring total income at ‘NIL’. In the assessment completed under 1 Assessment Year: 2013-2014 N.N. Ispat Pvt. Limited 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 under section Rs. 10,178/- 36(1)(va) read with Rule 8D (ii) Disallowance under section Rs. 3,76,686 14A (iii) Undisclosed sale Rs.3,05,12,525/-

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) challenging of the additions made by the Assessing Officer to its total income 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 for non-prosecution vide his appellate order dated 28.03.2018 passed ex-parte. 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. As submitted by the ld. Counsel for the assessee, the appeal of the assessee was fixed for hearing by the ld. CIT(Appeals) on three different dates in the month of March, 2018 and although the assessee sought adjournment on the said dates on the ground that its Authorized Representative was busy in filing time barring income-tax returns for A.Y. 2017-18, the ld. CIT(Appeals) did not give any further opportunity to the assessee and proceeded to dismiss the appeal of the assessee for non-prosecution vide his impugned order passed ex- parte. Keeping in view this submission made by the ld. Counsel for the assessee, we are of the view that proper and sufficient opportunity of being heard appears to have been not given by the ld. CIT(Appeals) to the assessee and it is a clear case of violation of principles of natural justice. Even the ld. D.R. has not been able to raise any objection in this regard. Moreover, the ld. CIT(Appeals) as per the provisions of sub-section (6) of Assessment Year: 2013-2014 N.N. Ispat Pvt. Limited section 250 was required to dispose of the appeal 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 order passed by the ld. CIT(Appeals) does not comply with these requirements. We, therefore, consider it fair and proper and in the interest of justice to set aside the impugned order passed by the ld. CIT(Appeals) 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.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on December 18, 2019.