SAPPHIRE VANIJYA PRIVATE LIMITED ,KOLKATA vs. ITO, WARD - 2(4), KOLKATA , KOLKATA

The ld.AR submits that the assessee challenged the order passed by the AO u/s. 144/263 of the Act before the CIT-A. Before the CIT-A the assessee filed adjournment applications from time to time. The CIT-A without considering the same, dismissed the appeal of assessee by ex parte and confirmed the order of the AO passed u/s. 144/263 of the Act, which is not justified and urged to remand the issue(s) involved in this appeal to the file of the CIT-A for his fresh adjudication.

On the other hand, the ld.DR objected to the above submissions of the ld.AR and referred to para 2 of the order of the CIT-A and argued that the CIT-A given sufficient opportunities for hearing to the assessee and the assessee failed to appear with its contentions and kept on filing adjournment applications before the CIT-A. The assessee has not responded to the notices issued by the CIT-A. Inspite of having sufficient opportunities, the assessee did not avail the same to prosecute its case before the CIT-A and rightly passed order ex parte and it was justified as there was no representation of the assessee.

Heard both the parties and perused the record. We find that the AO u/s.144/263 determined the total income of assessee at Rs.4,36,34,000/- by making the following additions by an order dt. 31-03-2014:- 1. Undisclosed preliminary expenses Rs. 9,000/- 2. Cash credit u/s. 68 Rs.4,36,00,000/- 3. Disallowance on share issue expenses Rs. 19,000/- 4. Disallowance u/s. 14A Rs. 4,664/-

This action of the AO was challenged by the assessee before the first appellate proceedings. The first appellate authority has given number of opportunities to assessee to prosecute its case. But, the assessee remained absent before the CIT-A by way of filing of adjournment applications from time to time. Therefore, taking into consideration the facts of the case and the issues involved in the appeal and the submissions of ld. AR and in the interest of justice, we deem it fit and proper to remand the issue(s) to the file of the CIT-A for his fresh consideration. The assessee is directed not to seek any adjournments before the CIT-A. The assessee shall be at liberty to file necessary evidences and explanation in support of its claim and contention. The grounds raised by the assessee in the appeal are allowed for statistical purpose.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open Court on 20-04-2018