ADVANTAGE EQUI FUND PVT. LTD.,KOLKATA vs. DCIT, CIRCLE - 3(1), KOLKATA, KOLKATA

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ITA 1401/KOL/2017Status: DisposedITAT Kolkata18 July 2018AY 2010-113 pages
AI SummaryRemanded

What did the Tribunal hold?

The ITAT found that the CIT(A) passed the order ex-parte and failed to consider the merits of the issues. Therefore, the ITAT restored the case back to the CIT(A) for fresh adjudication after providing the assessee with three effective opportunities of hearing.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard an appeal against an ex-parte order passed by the CIT(A). The CIT(A) had confirmed various disallowances and additions made by the Assessing Officer without adjudicating on the merits of the case.

What were the issues?

Whether the CIT(A) properly adjudicated the appeal on merits when passing an ex-parte order, and if proper opportunities of hearing were provided to the assessee.

Which sections of the Income-tax Act were involved?

Section 250(6),Section 143(3)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, KOLKATA ‘D’ BENCH, KOLKATA

Before: Sri S.S. Godara& Sri M. Balaganesh]

Deputy Commissioner of Income Tax, Circle-3(1), Kolkata..……….….….……………….…......Respondent Appearances by: Shri S.Agarwal, Advocate, appeared on behalf of the assessee. Shri A. Bhattacharya, Addl. CIT, DR appearing on behalf of the Revenue. Date of concluding the hearing : June 12th,2018 Date of pronouncing the order : July 18th,2018 ORDER Per S.S. Godara, JM :- This assessee’s appeal for the assessment year 2010-11 arises against the Commissioner of Income Tax (Appeals) – 18, Kolkata’s order dated 07/02/2017 passed ex-parte in case no. thereby confirming assessing officer’s action disallowing/adding prior period expenditure, professional tax u/s 43B, penalty, estimated disallowance from expenditure and difference in verificate in transaction involving sum of Rs.2,42,12/-, Rs.12,500/-, Rs.83,188/-, Rs.3,56,212/- & Rs.2,42,02/-; respectively in assessment order dt. 26/03/2013 involving proceedings u/s 143(3) of the Income Tax Act, 1961 (in short ‘Act’).

Heard both the parties. Case file perused.

2.

It is noticed at the outset that the CIT(A) has passed his order ex-parte whilst confirming all the above stated disallowance/additions made in course of assessment. Learned departmental representative vehemently supports the same during the course of hearing before us. He invites our attention to paragraph 3 of the CIT(A)’s order indicating him to have issued relevant notices of hearing on Assessment Year: 2013-14 Advantage Equi Fund Pvt. Ltd 14.07.2016, 31.10.2016 and 15.12.2016. We see not even a single remark in the said operative part suggesting actual service of the said notices of hearing. Learned departmental representative further fails to dispute the fact that the CIT(A) has simply confirmed the corresponding disallowance/additions without even adverting to the merits of the issue in tune with the relevant material available on record as per Section 250(6) of the Act. We therefore restore the instant lis back to the CIT(A) for fresh adjudication as per law after affording the assessee three effective opportunities of hearing.

3.

This assessee’s appeal is accepted for statistical purposes.

Kolkata, the 18th day of July, 2018.

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