M/S BHOOTNATH DISTRIBUTORS (P) LTD.,KOLKATA vs. I.T.O.,WARD-10(1), KOLKATA

The assessee in the present case is a company which is engaged in the business of investment. The return of income for the year under consideration was filed by it on 30.09.2015 declaring a total income of Rs. 4,29,270/-. In the assessment completed u/s 143(3) vide an order dated 01.12.2017, the total income of the assessee was determined by the AO at Rs. 8,68,720/- after making a disallowance of Rs. 4,39,443/- u/s 14A of the Income-tax Act, 1961 read with Rule 8D of Income-tax Rules, 1962.

Against the order passed by the AO u/s 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) 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(A) dismissed the appeal of the assessee for non-prosecution vide his appellate order dated 02.01.2019 passed ex-parte. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal.

I have heard the arguments of both the sides and also perused the relevant material available on record. The learned counsel for the assessee has submitted that none of the notices issued by the Ld. CIT(A) fixing the appeal of the assessee for hearing was received by the assessee and such non-receipt of notices resulted into non- appearance of the assessee when its appeal was called for hearing before the Ld. CIT(A). Keeping in view this submission made by the assessee, I am satisfied that there was a sufficient cause for the non- appearance of the assessee before the Ld. CIT(A). Moreover, as per the provisions of sub-section (6) of section 250, the Ld. CIT(A) 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(A) does not comply with these requirements. I, therefore, set aside the impugned order passed by the Ld. CIT(A) 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 proper and sufficient opportunity of being heard to the assessee. As undertaken by the learned counsel for the assessee, the assessee shall make due

In the result, the appeal of the assessee is treated as allowed for statistical purpose. Order Pronounced in the Open Court on 9th September, 2019.