What did the Tribunal hold?

The Tribunal found the CIT(A)'s order to be non-speaking and passed ex parte. Therefore, the case was remanded back to the CIT(A) for fresh adjudication on merits.

The assessee's appeal concerns the disallowance of short-term capital losses on shares. The CIT(A) passed an ex parte order without a detailed discussion or noting whether the assessee was properly served.

What were the issues?

Whether the CIT(A) passed a proper ex parte order and whether the assessee was duly served with hearing notices.

M/S. Rocky Marketing Pvt. Ltd. vs DCIT | ITAT Kolkata 2018

Income Tax Appellate Tribunal, “SMC” BENCH : KOLKATA

Before: Hon’ble Shri S.S. Godara, JM]

Hearing: 10.09.2018

This assessee’s appeal for assessment year 2010-11 is directed against the CIT(A)-1, Kolkata’s ex parte order dated 04.03.2016 passed in case no. 169/CIT(A)-1/Wd- 2(1)/2013-14 affirming the Assessing Officer’s action disallowing / adding short term capital loans of Rs. 4,62,60,000/- in shares of M/s AAT Techno Info Ltd. against short term capital gains of Rs. 37,72,353/- in other shares made in assessment order dated 26.03.2013, in proceedings u/s 143(3) of the Act. Heard both the parties reiterating respective circumstances in support of the impugned loss disallowance which case file perused.

It emerges at the outset that the CIT(A) has passed his earlier order ex parte. He appears to have granted two opportunities to the assessee during the course lower appellate proceedings. Former one was on 19.01.2016 as against latter one dated

M/s Rocky Marketing Pvt. Ltd. A.Yr. 2010-11 03.03.2016. He has thereafter passed his lower appellate order by invoking ex parte proceedings and followed by a total non-speaking adjudication on merits not inconsonance with section 250(6) of the Act requiring point of determination and a detailed discussion. It further transpires that there is not a single remark as to whether the assessee had been actually served the lower appellate hearing notice(s) or not. I therefore deem it appropriate to remand the instant issue back to CIT(A) for fresh adjudication on merits as per law.

This assesses’s appeal is accepted for statistical purposes.

Order pronounced in the Court on 26.09.2018

M/S. ROCKY MARKETING PVT. LTD.,KOLKATA vs. DCIT, CENTRAL CIRCLE - 2(1), KOLKATA, KOLKATA

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