M/S GULSHAN POLYOLS LTD.,,NEW DELHI vs. ADDL. CIT, NEW DELHI

That the Hon’ble Addl. Commissioner of Income Tax is wrong and unjustified both in law and facts in disallowing of part deduction u/s 80IC in respect of other Income of Rs. 4,31,756/-.” 2. Facts of the case, in brief, are that the assessee filed the return of income on 27.09.2012 declaring total income at Rs. 12,83,56,760/-. Later on the case was selected for scrutiny. The AO made the addition of Rs. 7,46,213/- by making the disallowance out of the repairs and maintenance and added Rs. 42165/- by making the disallowance u/s 14A of the Income Tax Act, 1961 (hereinafter referred to as the Act). The AO also made certain other disallowances and framed the assessment at an Income of Rs. 13,08, 35,522/- under normal provisions of the Act and at an income of Rs. 21,37,14,140/- under the provisions of section 115JB of the Act. 3. Being aggrieved, the assessee carried the matter to the ld. CIT(A) who dismissed the appeal by observing in para 2 of the impugned order as under : “2. The case was fixed for hearing on 13.08.2015 but none appeared on that date or after that. Again the case was fixed for hearing on 29.12.2015 and once again no one attended nor filed any adjournment application. It seems that the appellant is not interested in pursuing the matter, therefore the appeal is dismissed.” Now, the assessee is in appeal.

The ld. Counsel for the assessee at the very outset stated that the ld. CIT(A) without giving proper opportunity of being heard to the assessee and discussing the issues agitated by the assessee on merit, dismissed the appeal of the assessee. In his rival submissions, the ld. DR supported the impugned order passed by the ld. CIT(A). 5. We have considered the submissions of both the parties and perused the material available on the record. In the present case, it is an admitted fact that the ld. CIT(A) has not discussed the issues on merit and dismissed the appeal in limine. He simply stated that case was fixed for hearing on 29.12.2015 and dismissed the appeal by passing the impugned order on 09.08.2016. But nowhere he mentioned that notice for hearing on the said date was served upon the assessee. It is well settled that nobody should be condemned unheard as per the maxim, “Audi Alteram Pertam”. We, therefore, keeping in view the principles of natural justice, deem it appropriate to set aside this case back to the file of the Ld. CIT(A) to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee. 6. In the result, appeal filed by the assessee is allowed for statistical purposes. (Order Pronounced in the Court on 26/12/2017).