M/S CROSS ROAD ESTATE PVT. LTD.,NEW DELHI vs. JCIT (TDS), NEW DELHI

The assessee company had made payment in cash to their employee as unaccounted salary without deducting TDS, therefore, the Assessing Officer passed an Assessment Order. The Assessing Officer thereafter, passed penalty order u/s 271C on 31.05.2013 thereby imposing penalty of Rs.2,97,000/- for A.Y. 2007-08 and 2008-09.

The assessee filed an appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee on the ground of non-prosecution of the appeal and hence passed an ex-parte order without commenting on merit of the case.

The Ld. AR prayed that due to unavoidable circumstances the assessee could not attain the proceedings before the CIT(A) and further requested that the matter may be restored back to the file of the CIT(A) for fresh adjudication on merit.

The Ld. DR submitted that despite giving opportunity, the assessee has not attended the appellate proceeding before the CIT(A) and hence, the present appeal should not be entertained at all.

We have heard both the parties and perused all the relevant materials available on record. From the perusal of the CIT(A) order, it can be seen that the CIT(A) has not commented on merit and due to non-attendance dismissed the appeal of the assessee. In the interest of justice, it will be appropriate to the remand back this matter to the file of the CIT(A) for fresh adjudication on merit. The Assessee is directed to appear on 15th April, 2020 before the CIT(A) and make the submissions accordingly. If the assessee does not appear on the specified date before the CIT(A), the CIT(A) may adjudicate the matter ex-parte on merit. No notice should be given to the assessee as we have informed the same to the assessee’s representative during the course of hearing that assessee will appear on 15.04.2020 and he has agreed to the same. Therefore, the appeal of the assessee is partly allowed for statistical purposes.