THE EASTERN TEA CO. LTD., ,KOLKATA vs. DCIT, CIRCLE - 4, KOLKATA , KOLKATA

This appeal by the assessee arises out of the order of the Learned Commissioner of Income Tax(Appeals)-2, Kolkata [in short the ld CIT(A)] in Appeal No. 213/CIT(A)- 2/14-15 dated 18.04.2017 against the order passed by the DCIT, Circle-4, Kolkata [ in short the ld AO] under section 143(3) of the Income Tax Act, 1961 (in short “the Act”) dated 29.12.2009 for the Assessment Year 2007-08.

We find that the assessee had raised several grounds against the action of the ld CITA upholding the disallowance of various expenses. We find that the assessee had also raised one ground stating that adequate opportunity was not given to it by the ld CITA and that the order of the ld CITA had been passed ex parte. We deem it fit and The Eastern Tea Co. Ltd. A.Yr. 2007-08 appropriate to address this preliminary issue on the violation of principles of natural justice.

The brief facts of this issue are that the assessment was completed u/s 143(3) of the Act dated 29.12.2009 for the Asst Year 2007-08 determining total income at Rs Nil after making huge disallowances and additions. The assessee preferred an appeal before the ld CITA sought adjournment on few occasions and did not appear on certain occasions. Accordingly, the ld CITA decided the appeal ex parte by dismissing the appeal of the assessee. Aggrieved, the assessee is in appeal before us.

The ld AR prayed before us that one more opportunity may be granted to the assessee to address its grievances before the ld CITA. In response to this, the ld DR vehemently objected to remanding this appeal to the file of the ld CITA in as much as the assessee had not bothered to appear before the ld CITA on certain occasions .

We have heard the rival submissions. We find that the order of the ld CITA has been passed ex parte and that the assessment has been completed after making several disallowance of expenses. In the facts and circumstances, we deem it fit and appropriate , in the interest of justice and fair play, to remand this appeal to the file of the ld CITA for de novo adjudication by giving 3 effective opportunities to the assessee. The assessee is also directed to co-operate with the ld CITA’s proceedings and not to take adjournment except due to bonafide or exceptional circumstances. The ld CITA is also directed to dispose of this appeal after giving 3 effective opportunities to the assessee and pass orders in accordance with law, uninfluenced by earlier decision taken in this The Eastern Tea Co. Ltd. A.Yr. 2007-08 regard. Accordingly, the grounds raised by the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.