BENGAL STEEL & DRUMS SUPPLY CO. ,KOLKATA vs. ITO, WARD - 57(2)(TDS), KOLKATA , KOLKATA

The captioned appeal filed by the Assessee pertaining to assessment year 2009-10, is directed against an order passed by the learned Commissioner of Income Tax (Appeals)-24, Kolkata (in short the ld. CIT(A)], which in turn arises out of a penalty order passed by the Assessing Officer u/s 201(1) / 201(1A) of the Income Tax Act, 1961 ( in short the Act) dated 05.03.2013.

At the outset itself, the ld. Counsel for the assessee assailed the impugned order by contending that the ld. CIT(A) did not adjudicate the issue on merits and the assessee could not plead 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.

We note that in the assessee’s case under consideration, the penalty was imposed u/s 201(1) / 201(1A)) of the Act and the impugned order passed by the ld. CIT(A) is an ex parte order, therefore, we do not wish to make any comments on the merits of the grounds raised by the assessee.

Considering the above facts, we note that assessee has not participated in the appellate proceedings. However, we note that ld CIT(A) did not consider the assessment records and findings of ld assessing officer to decide the various issues on merits. We note that a perusal of the body of the impugned order, it is apparent that it is an ex parte order which has been challenged by the assessee for want of proper opportunity. We are of the view that one more opportunity should be given to the assessee to plead his case before the ld CIT(A). 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 treated as allowed.

In the result, the appeal of the assessee is allowed for statistical purposes.