What did the Tribunal hold?

The Tribunal condoned the delay in filing the appeal. It was held that the CIT(A) had violated the principles of natural justice by not considering the assessment records and not discussing the assessee's case on merits.

The assessee's appeal was filed beyond the limitation period. The assessee contended that the order of the CIT(A) was ex-parte and violated the principles of natural justice as they were not given an adequate opportunity to be heard.

What were the issues?

Whether the CIT(A) order was vitiated due to violation of the principles of natural justice. Whether the assessee was denied a fair opportunity to present their case before the first appellate authority.

M/S. Happy Trade Links Pvt. Ltd… vs ITO | ITAT Kolkata 2019

Income Tax Appellate Tribunal, “D”, BENCH KOLKATA

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

For Appellant: Shri Avijit Dey, Advocate

For Respondent: Shri Shankar Halder, JCIT Sr. DR

Hearing: 09/05/2019Pronounced: 10/05/2019

आदेश / O R D E R Per Dr. A. L. Saini:

The captioned appeal filed by the assessee , pertaining to assessment year 2012-13 is directed against the order passed by the Commissioner of Income Tax (Appeal)-5, Kolkata, which in turn arises out of an assessment order passed by the Assessing Officer u/s 144 of the Income Tax Act, 1961 (in short the Act) dated 26/03/2015.

The appeal filed by the assessee is barred by limitation by 104 days. The assessee filed a petition requesting the Bench to condone the delay. We have heard

M/s Happy Trade Links Pvt. Ltd. Assessment Year:2012-13 both the parties on this preliminary issue, and having regard to the reasons given in the petition. We condone the delay and admit the appeal of the assessee.

3.At the outset itself, the ld. Counsel for the assessee assailed the impugned order by contending that the assessee could not represent 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.

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. We note that it is settled law that principles of natural justice and fair play require that the effected party is granted sufficient opportunity of being heard to contest his case. 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. 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 10.05.2019

M/S. HAPPY TRADE LINKS PVT. LTD.,HOWRAH vs. ITO, WARD - 13(2), KOLKATA, KOLKATA

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