M/S. SAPPHIRE MARKCOM PVT. LTD.,JAMSHEDPUR vs. ITO, WARD - 9(4), KOLKATA, KOLKATA

The assessee in the present case is a Company, which filed its return of income for the year under consideration on 17.09.2012 declaring total income of Rs.19,38,530/-. In the assessment completed under section 143(3) vide an order dated 19.03.2015, the total income of Assessment Year: 2012-2013 M/s. Sapphire Markcom Pvt. Limited the assessee was determined by the Assessing Officer at Rs.2,50,68,530/- after making an addition of Rs.2,31,30,000/- under section 68 by treating the share capital of Rs.2,31,30,000/- received by the assessee during the year under consideration as unexplained cash credit.

The addition made by the Assessing Officer under section 68 on account of unexplained cash credit was challenged by the asseesese in the appeal filed before the ld. CIT(Appeals) and since there was no compliance on the part of the assesssee to the notices issued by him fixing the said appeal for hearing on 28.05.2018 and 18.06.2018, the ld. CIT(Appeals) dismissed the appeal of the assessee vide his appellate order dated 28.06.2018 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. In support of the preliminary issue raised by the assessee in this appeal challenging the impugned order passed by the ld. CIT(Appeals) ex-parte, the ld. Counsel for the assessee has submitted that the notices of hearing stated to be issued by the ld. CIT(Appeals) fixing the hearing on 28.05.2018 and 18.06.2018 were never received by the asseessee and the assessee, therefore, could not comply with the same. He has contended that the appeal filed by the assessee thus has been dismissed by the ld. CIT(Appeals) vide his impugned order passed ex-parte without giving proper and sufficient opportunity of being heard to the assessee and there is a clear violation of principle of natural justice. Keeping in view all the relevant facts of the case, we find merit in this contention of the ld. Counsel for the assessee and since the ld. D.R. has also not raised any objection in this regard, we 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 proper and sufficient 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 April 08, 2019.