PRAJAPATI EXPORTS PVT. LTD.,KOLKATA vs. ITO, WARD - 1(4), KOLKATA

This Assessee’s appeal for assessment year 2009-10 arises against the CIT(A), 1, Kolkata’s order dated 31-08-2018 passed in case no. 26075/CIT(A)-1/Ward- 1(4)/2015-16 involving proceedings u/s 143(3)/147/263/144 of the I.T Act, 1961 (in short ‘Act’) . Heard both the parties. Case file perused.

The Assessee’s only grievance raised in the instant appeal seeks to delete section 68 of the Act addition of bogus cash credit in the nature of its share application money amounting to Rs.6,26,00,000/- made in the course of assessment as upheld in lower appellate proceedings.

It transpires at the outset after hearing both the parties that the CIT(A) has passed his lower appellate order ex parte whilst affirming the impugned bogus cash credit in the lower appellate proceedings.

Shri Shankar Halder, JCIT, ld. Sr.DR vehemently contends during the course of hearing that the assesse never put in appearance in the first appellate proceedings, which made the CIT(A) to proceed ex parte. We find no reason to express our concurrence with the Revenue’s submissions. We notice from page-2 para-3 in the CIT(A)’s order that there is no even an indication as to whether the assessee had actually been served relevant hearing notice or not. Coupled with this, the CIT(A) has upheld the impugned addition on merits without even discussing relevant factual backdrop of facts followed by detailed adjudication as contemplated u/s. 250(6) of the Act. We therefore deem it appropriate to restore the instant issue(s) back to the CIT(A) for fresh adjudication on merits as per law within three effective hearings.

This Assessee’s appeal is allowed for statistical purpose in above terms. Order pronounced in the Court on 15 -05-2019 Sd/- Sd/- [ Dr. Arjun Lal Saini ] [ S.S.Godara ] Accountant Member Judicial Member Dated :15 -05-2019 **PRADIP, Sr. PS Copy of the order forwarded to: