JANHIT DEALCOM PVT. LTD.,KOLKATA vs. ITO, WD-6(2), KOLKATA, KOLKATA

The assessee in the present case is a company which is engaged in the business of investment and trading in shares as well as finance. The return of income for the year under consideration was filed by it on 24.09.2011 declaring a total income of Rs. 217/-. In the assessment completed under section 143(3) vide an order dated 27.03.2014, the total income was determined by the assessee at Rs. 43,87,75,340/- after making an addition of Rs. 43,87,50,000/- to the total income of the assessee on account of share application money by treating the same as unexplained cash credit.

Against the order passed by the A.O. under section 143(3), an appeal was preferred by the assessee before the Ld. CIT(A) and since there was no compliance on the part of the assessee to the notices issued by him fixing the said appeal for hearing from time to time, the Ld. CIT(A) dismissed the appeal of the assessee vide his appellant order dated 16.03.2016 passed ex-parte. Aggrieved by the order of the Ld. CIT(A), the assessee has preferred this appeal before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. In ground no 1, the assessee has raised a preliminary issue challenging the impugned order passed by the Ld. CIT(A) on the ground that no proper opportunity of hearing having been given to the assessee, there was a violation of principles of natural justice by the Ld. CIT(A) in dismissing the appeal of the assessee vide his impugned order passed ex-parte. In this regard, affidavit of CA Monaj Sethia has been filed by the assessee explaining the reasons for the non-compliance before the Ld. CIT(A) as under: “I, Manoj Sethia son of Late Nem Chand Sethia aged about 47 years by faith Hindu by profession Chartered Accountant do hereby solemnly affirm on oath and declared as follows:-

1. 1. That I decided to attend and represent the case before the Ld. CIT(A)- 6, Kolkata on 25.02.2016 in the matter of M/s. Janhit Dealcom Pvt. Ltd. and M/s. Jamuna Tradecom Pvt. Ltd. But while my way to attend the hearing on the said date, I suddenly fell sick due to high blood pressure and weakness.