What did the Tribunal hold?

The Tribunal held that the assessing officer did not provide adequate opportunity to the assessee and passed the assessment order without proper inquiry. The CIT(A) also passed an ex parte order without dealing with the merits of the case.

The assessee contended that the assessment order was passed without adequate opportunity and inquiry, and the CIT(A) passed an ex parte order. The AO issued a notice for scrutiny assessment, but the assessment order was passed before the scheduled hearing date.

What were the issues?

Whether the assessee was provided with adequate opportunity for natural justice during the assessment proceedings and whether the assessment order was passed without proper inquiry.

M/S Devi Trading & Holding Pvt Ltd vs ITO | ITAT Kolkata 2018

Income Tax Appellate Tribunal, “D” BENCH : KOLKATA

Before: Hon’ble Shri J.Sudhakar Reddy, AM & Hon’ble Shri S.S. Viswanethra Ravi, JM ]

Hearing: 17.05.2018Pronounced: 18.05.2018

ORDER Per J.Sudhakar Reddy, AM

This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)- 16, Kolkata passed u/s 143(3) of the Income Tax Act, 1961(the ‘Act’).

The ld. Counsel for the assessee pointed out that the notice for scrutiny assessment was issued to the assessee by the AO on 05.12.2014 fixing the case for hearing on 10.12.2014 and that the Director of the assessee company received summons to appear on 19.03.2014 and that on 18.03.2015 the assessment order was passed on 25.03.2014 and hence the assessee did not have adequate opportunity to represent its case. Further the ld. Counsel for the assessee submitted that, the assessment order is passed u/s M/s Devi Trading & Holding Pvt. Ltd. A.Yr.2012-13 143(3) of the Act without enquiry and verification and the Ld. CIT(A) had also passed an ex parte order. He submitted that the assessee has not been provided with adequate opportunity. He submitted that on similar facts the Kolkata “A” Bench of the Tribunal in in the case of Sriram Tie Up Pvt. Ltd vs ITO order dated 21.03.2018 and in the case of M/s Skipper Plastic Ltd. in I.T.A. No. 282/Kol/2016 order dated 21.03.2018 and in certain other cases, the impugned order was set aside to the file of the assessing officer for fresh adjudication on grounds of natural justice.

The ld. DR did not object to the prayer that this assessment may be set aside to the file of the assessing officer but, submitted that directions should be given to the assessee to ensure attendance and cooperation by the assessee before the assessing officer.

After hearing rival contentions and perusing the papers on record as well as the case law cited we hold as follows.

5. The assessing officer has not given adequate opportunity to the assessee and has passed an order u/s 143(3) of the Act without adequate enquiry. The Ld. CIT(A) has passed an ex parte order and has not dealt with the issue on merit.

Hence we set aside this assessment to the file of the assessing officer on grounds of natural justice for fresh adjudication, with a direction that an adequate opportunity should be provided to the assessee. The assessee is directed to appear before the M/s Devi Trading & Holding Pvt. Ltd. A.Yr.2012-13 assessing officer within 30 days of receipt of this order, take notice and thereafter cooperate in completion of the assessment.

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

Order pronounced in the Court on 18.05.2018

M/S DEVI TRADING & HOLDING PVT LTD,KOLKATA vs. ITO, WARD 7(3), KOLKATA, KOLKATA

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