M/S INTERNATIONAL AUDIT & MUSIC PVT. LTD.,KOLKATA vs. I.T.O.,WARD-15(3), KOLKATA

The relevant facts of the case giving rise to this appeal are that the assessee is a Company, which is engaged in the business of trading in Musical Instruments. The return of income for the year under consideration was filed by it on 29.09.2013 declaring total income of M/s. International Audit & Music Pvt. Limited Rs.5,46,560/-. In the assessment completed under section 143(3) vide an order dated 09.03.2016, the total income of the assessee was determined by the Assessing Officer at Rs.8,27,909/- after making two additions of Rs.31,754/- and Rs.2,49,596/- on account of disallowance of expenses towards CST Assessment Tax and Prior Period Expenses respectively.

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) and since there was no compliance on the part of the assessee to the notices issued by him fixing the said appeal for hearing from time to time, the ld. CIT(Appeals) dismissed the appeal of the assessee vide his appellate order dated 01.11.2018 passed ex-parte for non-prosecution. 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 dismissing the appeal of the assessee for non-prosecution, the ld. Counsel for the assessee has contended that the notices issued by the ld. CIT(Appeals) fixing the appeal of the assessee for hearing were never received by the assessee and such non-receipt resulted into non-compliance on the part of the assessee before the ld. CIT(Appeals). Keeping in view this submission made by the ld. Counsel for the assessee, we are satisfied that there was a sufficient cause for the non-appearance of the assessee when its appeal was called for hearing before the ld. CIT(Appeals). Moreover, the ld. CIT(Appeals) as per sub-section (6) of section 250 was required to dispose of the appeal of the assessee vide an order passed in writing stating therein the points for determination, the decision thereon and the reason for the decision. The impugned order passed by the ld. CIT(Appeals) does not comply with these requirements. We, therefore, set M/s. International Audit & Music Pvt. Limited aside the said order and remit the matter back to him for disposing of the appeal of the assessee afresh on merit by passing a well reasoned and well discussed order after giving the assessee one more opportunity of being heard.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on January 25, 2019.