M/S. THE BAGANWALA ADARSH COOP L/C SOCIETY LTD.,HISAR vs. ITO, HISAR

This is an appeal filed by the assessee against the order passed exparte by ld. CIT(A), Rohtak dated 12.11.2013 for the assessment year 2009-10 on the following grounds :

The brief facts of the case are that the assessee filed his return of income on 03.03.2010 declaring nil income. The case was selected for scrutiny and statutory notices were served upon the assessee. The case was fixed for hearing on different dates. The President of the Society Shri Sandeep appeared on 18.11.2011 but without any documents and requested for adjournment for 24.11.2011. Again on 24.11.2011, he requested for adjournment on 30.11.2011 and again he requested for adjournment for 07.12.2011. On 07.12.2011, he attended the proceedings, but he submitted only written submissions without any supporting documents as required by the AO. After that the ld. Assessing Officer considering the facts and circumstances made assessment u/s. 144 of the IT Act, 1961 and applying 8% of net profit on gross payment of Rs.1,61,17,886/- and after allowing deduction u/s. 80-P(2)(c) of Rs.50,000/- calculated the taxable income of Rs.12,39,430/-. Aggrieved by this assessment made u/s. 144, the assessee appealed before the first appellate authority, who issued notices many a times but the assessee did not appear before him also. The ld. CIT(A) after relying upon some case laws dismissed the appeal of the assessee. Aggrieved by the order of first appellate authority, the assessee is before the Tribunal in appeal.

During the course of hearing the ld. AR of the assessee requested before the Bench to give him one more opportunity of being heard before the AO and to put up its case. He undertook that the assessee will comply with all the requirements of the Assessing Officer and shall fully cooperate with the Assessing Officer in completion of assessment proceedings. He, therefore, prayed for giving the assessee one more opportunity. The ld. DR did not object to this request of the ld. AR.

We have heard both the parties and have perused the material on record. Keeping in view the principles of natural justice, that no litigant should possibly be left unheard before finally deciding the litigation and also the fact that the ld. DR has no objection to the request made on behalf of the assessee, we think it appropriate to accept the request of the assessee. We, accordingly, remit the matter back to the file of Assessing Officer for passing the assessment de novo after giving an opportunity of being heard to the assessee and the assessee is directed to fully cooperate with the AO in fresh assessment proceedings, as undertook before the Bench. As requested by the assessee before the Bench, the Assessing Officer may consider to fix the date of hearing in fresh assessment proceedings on 03.05.2017. Accordingly, the appeal of the assessee is allowed for statistical purposes.

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