M/S. NOVELTY TIE-UP PRIVATE LIMITED,BHILWARA vs. ITO, WARD - 1(3), KOLKATA, KOLKATA

This appeal filed by the assessee is directed against the order of Ld. CIT(A) – 14, Kolkata dated 27.02.2018 passed ex-parte whereby he dismissed the appeal of the assessee.

The assessee in the present case is a company which is engaged in the business of labour contract, commission/brokerage and share dealings. The return of income for the year under consideration was filed by it on 16.03.2010 declaring a total income at nil. In the assessment originally completed u/s 143(3)/147 of the Act vide an order dated 10.11.2010, the total income of the assessee was determined by the AO at Rs. 42,030/-. The record of the said assessment came to be examined by the concerned CIT and on such examination, he found the order passed by the AO u/s 143(3)/147 as erroneous and prejudicial to the interest of the revenue. Accordingly,

As per the order of the Ld. CIT passed u/s 263, notices u/s 142(1) were issued by the AO to the assessee. The same however remained uncomplied with. Even the summons issued by the AO to the director of the assessee company did not invoke any positive response. The AO, therefore, proceeded to complete the assessment to the best of his judgement and in the assessment so completed u/s 144/263 of the Act vide an order dated 18.03.2014, the entire share capital and share premium amount aggregating to Rs. 22,60,00,000/- was added by him to the total income of the assessee u/s 68 by treating the same as unexplained cash credit. He also made a further addition of Rs. 3,62,970/- on account of disallowance u/s 14A.

Against the order passed by the AO u/s 144/263, 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 3 M/s. Novelty Tie-up Pvt. Ltd. Assessment Year: 2008-09 Ld. CIT(A) dismissed the appeal of the assessee vide his appellate order dated 27.02.2018 passed ex-parte. Aggrieved by the order of the Ld. CIT(A), 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. The learned counsel for the assessee has submitted the notices issued by the Ld. CIT(A) fixing the appeal of the assessee for hearing were never received by the assessee and the assessee, therefore, could not comply with the same. He has also submitted that even the specific directions given by the Ld. CIT in his order dated 11.03.2013 passed u/s 263 were not followed by the Assessing Officer in as much as no enquiry whatsoever was made by the AO directly with the concerned shareholder companies. He has urged that this matter may, therefore, be sent back to the AO for passing the assessment order afresh as per the specific directions given by the Ld. CIT vide his order dated 11.03.2013 passed u/s 263. We find merit in this contention of the learned counsel for the assessee and since the learned DR has also not raised any objection for sending the matter back to the Assessing Officer, we set aside the impugned order passed by the Ld. CIT(A) ex- parte and restore the matter to the file of the AO for completing the assessment afresh as per the specific directions given by the Ld. CIT in his order dated 11.03.2013 passed u/s 263. As undertaken by the learned counsel for the assessee, the assessee shall make a due compliance before the AO and shall extend all the possible

In the result, the appeal of the assessee is treated as allowed for statistical purpose. Order Pronounced in the Open Court on 8th March, 2019.