M/S. MUNIRAJ SYNTHETICS (I) PVT LTD. COMPANY,THANE vs. DCIT, CIRCLE-10(2)(2), MUMBAI

Briefly stated facts necessary for consideration and adjudication of the issues at hand are : the return of income filed by the assessee claiming set off of brought forward loss of Rs.6,39,200/- was subjected to scrutiny. The Assessing Officer (AO) after declining the contentions raised by the assessee proceeded to hold that the assessee has failed to prove the identity and creditworthiness of M/s. Sumukh Commercial Pvt. Ltd. which is a benami concern of Shri Pravin Kumar Jain nor has proved the genuineness of the transaction qua the unsecured loan raised by the assessee to the tune of Rs.36,00,000/- and thereby treated the same as unexplained cash credit in the books of the assessee company and accordingly made addition thereof. The AO has also disallowed the interest to the amount of Rs.84,033/- claimed to have been paid by the assessee to M/s. Sumukh Commercial Pvt. Ltd. and thereby framed the assessment under section 143(3) of the Income Tax Act, 1961 (for short ‘the Act’).

The assessee carried the matter before the Ld. CIT(A) by way of filing appeal who has confirmed the addition by dismissing the appeal ex-parte for want of prosecution without entering into its merits. Feeling aggrieved with the impugned order passed by the 4 M/s. Muniraj Synthetics (I) Pvt. Ltd.

We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto.

We have perused the impugned order passed by the Ld. CIT(A) at page 26 & 27 of the impugned order of the Ld. CIT(A) wherein the Ld. CIT(A) has written in tabulated form that 12 notices were issued to the assessee but no compliance was made nor any request for adjournment was received and thereby dismissed the appeal for want of prosecution.

The Ld. A.R. for the assessee by filing a paper book running into 288 pages brought to the notice of the Bench that vide letter dated 29.07.2019 available at page 1 he has sought adjournment as he was down with viral fever which letter is duly shown to have been received by the office of Ld. CIT(A). It is further brought to the notice of the Bench that the assessee has filed all the details required by the Ld. CIT(A) vide letter available at page 6 to 8 of the paper book. 5 M/s. Muniraj Synthetics (I) Pvt. Ltd.

From the facts and circumstances of the case it is proved that the assessee has filed the submissions along with necessary documents in physical form before Ld. CIT(A) but in the meantime case was transferred to faceless proceedings in which the assessee was required to file the submissions online which he has failed to file. The Ld. A.R. for the assessee contended that no further notice has ever been received by the assessee.

In these circumstances, we are of the considered view that adequate opportunity of being heard has not been given to the assessee. To decide the issue once for all the Ld. CIT(A) is required to decide the case on merits. In these circumstances, the impugned order passed by the Ld. CIT(A) is not sustainable in the eyes of law having been passed in violation of principle of natural justice, hence set aside. Case is remitted back to the Ld. CIT(A) to decide afresh after providing opportunity of being heard to the assessee.

Resultantly, the appeal filed by the assessee is allowed for statistical purposes.