M/S. YOGENDRA INTERNATIONAL ,KOLKATA vs. ITO, WARD - 45(4), KOLKATA , KOLKATA

The assessee in the present case is a partnership firm. In the assessment completed under section 143(3) vide an order dated 23.03.2015, the total income of the assessee was determined by the Assessing Officer at Rs.10,32,640/- as against the income of Rs.7,75,675/- M/s. Yogendra International declared in the return of income after making certain additions to the total income of the assessee on account of disallowance of various expenses. Penalty proceedings under section 271(1)(c) were also initiated by the Assessing Officer and since the explanation offered by the assessee in support of the show-cause notice issued during the course of the said proceedings was not found acceptable by him, the Assessing Officer imposed penalty of Rs.79,401/- under section 271(1)(c) of the Act being 100% of the tax sought to be evaded by the assessee. The penalty imposed by the Assessing Officer under section 271(1)(c) was challenged 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 hearings from time to time, the ld. CIT(Appeals) dismissed the appeal of the assessee vide his appellate order dated 17.01.2018 passed ex-pate thereby confirming the penalty imposed by the Assessing Officer under section 271(1)(c). 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 hearings fixed by the ld. CIT(Appeals) were never received by the assessee and none, therefore, could appear on behalf of the assessee before the ld. CIT(Appeals) on said dates of hearings. Keeping in view this reason given by the ld. Counsel for the assessee, we are satisfied that there was a sufficient cause for the non- appearance of the assessee before the ld. CIT(Appeals). Even the ld. D.R. has not raised any objection in this regard. We, therefore, 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 M/s. Yogendra International merit after giving the assessee proper and sufficient 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 December 20, 2018.