SHALIMAR TIE-UP PRIVATE LIMITED,KANPUR vs. ITO, WARD 1(3), KOLKATA, KOLKATA

The appeal filed by the assessee is against the order of Ld. CIT(A)-1, Kolkata dated 10.02.2017 for AY 2009-10.

At the outset, Ld. Counsel for the assessee submitted that the Ld. CIT(A) as well as the AO has passed ex parte order without affording reasonable opportunity of being heard to the assessee. He also submitted that the AO in the assessment order passed u/s. 144/263 of the Income-tax Act, 1961 (hereinafter referred to as the “Act”) in para 2.1 stated that a notice u/s. 142(1) of the Act dated 13.08.2014 was issued to the assessee company as per its last known address viz., 7/1A, Grant Lane, Kolkata700 012, giving opportunity of hearing on 02.09.2014. But the same was returned back with postal remarks “Insufficient Address”. Another re-fixation letter was issued on 17.10.2014 but the same was returned unserved with the remark “Insufficient Address”. Thereafter, the AO proceeded to complete the assessment to the best of his judgment u/s 144 of the Act on the basis of details and information available. The Ld. AR further submitted that no notice of hearing was served on the assessee from the office of the Ld. CIT(A) fixing the date of hearing on 27.12.2016, 09.01.2017 and 31.01.2017 and in view of the matter no compliance was Shalimar Tie-up Pvt. Ltd., AY- 2009-10 possible to be made on behalf of the assessee. Hence, he urged before the Bench to set aside the orders of the lower authorities and restore the matter to the file of the AO for fresh adjudication. On the other hand, Ld. DR relied on the orders of the lower authorities.

After hearing both the sides and on perusal of the orders of the lower authorities, we find that the Ld. CIT(A) as well as the AO has passed the an ex parte orders. We also note that the assessee has submitted that no notice of hearing was served on the assessee and hence, assessee could not make compliance by instructing its AR to appear and plead its case before the Ld. CIT (A) as well as the AO. We also note that the address of the assessee has changed i.e. at C/o Ahmad Ehtisham, Director, 14/35(1), Civil Lines, Kanpur, Uttar Pradesh-208001. Since the notice of hearing has not been served to the assessee in its new address, the Ld. AR of the assessee company could not attend the hearing. The change of address should have been communicated to the Ld. CIT (A) as well as to the AO, which lapse on the part of assessee is not willful and was a bona fide mistake on the part of the assessee, therefore, we set aside the orders of the lower authorities and restore the matter to the file of the AO for fresh adjudication on merits. Needless to say, the assessee should be given reasonable opportunity of being heard.

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