What did the Tribunal hold?

The Tribunal held that the CIT(A)'s order was vitiated due to a violation of the principle of natural justice. Therefore, the matter was restored to the CIT(A) for a fresh adjudication after providing a sufficient opportunity to be heard.

The assessee's appeal before the CIT(A) was decided ex-parte without considering the assessment records or discussing the case on merits. The assessee contended that this violated the principle of natural justice.

What were the issues?

Whether the CIT(A) order was passed in violation of the principle of natural justice by not considering the assessee's case on merits and without affording a proper opportunity of being heard.

Saboo Computers Pvt. Ltd. vs DCIT | ITAT Kolkata 2019

Income Tax Appellate Tribunal, “B”, BENCH KOLKATA

Before: SHRI S.S.GODARA, JM &DR. A.L.SAINI, AM

For Appellant: Shri Akkal Dudhwewala, FCA

For Respondent: Smt. Ranu Biswas, Addl. CIT

Hearing: 31/10/2019Pronounced: 13/11/2019

आदेश / O R D E R Per Bench:

The captioned appeal filed by the assessee , pertaining to assessment year 2015-16, is directed against the order passed by the Commissioner of Income Tax (Appeal)-1, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer u/s 143(3) of the Income Tax Act, 1961 (in short the Act) dated 29/12/2017.

At the outset itself, the ld. Counsel for the assessee submitted that the assessee could not plead his case before Ld. CIT(A) and the order being an ex-parte order, stood vitiated on account of violation of principle of natural justice. The ld. Counsel for the assessee contended that in the interest of justice, another opportunity to contest the appeal before the Ld. first appellate authority may be granted to the assessee.

Saboo Computers Pvt. Ltd. Assessment Year:2015-16 3. We heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the fact of the case including the findings of the ld CIT(A) and other material available on record. We note that the ld. CIT(A) did not consider the assessment records while adjudicating the issue. We note that the ld. CIT(A) did not discuss the assessee’s case on merits based on the material available before him hence it is a violation of principle of natural justice. Therefore, without delving much deeper into the merits of the case, in the interest of justice, we restore the matter back to the file of Ld. CIT(A) for de novo adjudication and pass a speaking order after affording sufficient opportunity of being heard to the assessee, who in turn, is also directed to contest his stand forthwith. Ld. D.R. for the revenue did not object if the matter is remitted back to the file of ld. CIT(A). Therefore, we deem it fit and proper to set aside the order of the ld. CIT(A) and remit the matter back to the file of the ld. CIT(A) to adjudicate the issue afresh on merits. For statistical purposes, the appeal of the assessee is allowed.

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

Order pronounced in the Court on 13.11.2019

SABOO COMPUTERS PVT. LTD.,KOLKATA vs. D.C.I.T.,CIRCLE-2(2), KOLKATA

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