SASA FOODS PVT. LTD.,DELHI vs. ITO, NEW DELHI

The main grievance of the assessee in this appeal relates to the denial of proper opportunity of being heard by the ld. CIT(A).

The facts of the case in brief are that the assessee did not file any return in response to the notice issued u/s 148 of the Income-tax Act, 1961 issued by the AO on the basis of information received from 2 SASA Foods Pvt. Ltd. Investigation Wing. The assessment was framed ex-parte u/s 144 of the Income-tax Act at an income of Rs.30,00,000/- by observing that the Investigation Wing reported that the assessee had taken credit of Rs.30,00,000/- and no return of income was filed.

Being aggrieved the assessee carried the matter to the ld. CIT(A) who passed the ex-parte order and sustained the addition made by the AO.

Now the assessee is in appeal. The ld. DR submitted that the assessee did not appear before the ld. CIT(A), therefore, there was no alternative except to decide the appeal ex-parte.

I have considered the submissions of the ld. DR and perused the material available on the record. In the present case, it is noticed that the ld. CIT(A) mentioned that the notices u/s 250 of the Act were issued on various dates and there was no compliance on the part of the assessee. However, he did not mention that the notice of hearing was served upon the assessee. It is well settled that nobody should be condemned unheard as per the maxim “audi alteram partem”. We, therefore, by keeping in view the principle of natural justice, deem it appropriate to set aside this case back to the file of the ld. CIT(A) to be adjudicated afresh in accordance with law, after providing due and reasonable opportunity of being heard.

3 SASA Foods Pvt. Ltd. 8. In the result, the appeal of the assessee is allowed for statistical purposes. (Order Pronounced in the Court on 22/05/2017)