M/S DEEPAK SPINNERS LTD.,KOLKATA vs. DCIT, CIR-11, KOLKATA, KOLKATA

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ITA 394/KOL/2016Status: DisposedITAT Kolkata15 November 2017AY 2008-093 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the assessee did not have adequate opportunity to present their case before the CIT(A). Therefore, the matter was remanded back to the CIT(A) for a fresh decision after providing sufficient opportunity for hearing and evidence submission.

What were the facts?

The assessee's appeal before the CIT(A) was decided ex parte. The assessee claimed they did not receive notice, while the revenue contended multiple notices were issued with no compliance. The assessee had raised several grounds of appeal challenging the assessment order.

What were the issues?

Whether the CIT(A) was justified in passing an ex parte order without providing sufficient opportunity to the assessee for hearing and substantiating their claims.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia),Section 43B

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH: KOLKATA

Before: Shri S.S. Viswanethra Ravi, & Shri Dr. Arjun Lal Saini

ORDER Shri S.S.Viswanethra Ravi, JM:

This appeal by the Assessee is directed against the order of the Commissioner of Income Tax (Appeals), 9, Kolkata dt. 29-01-2016 for the A.Y 2008-09.

2.

The only issue is to be decided as to whether the CIT-A is justified in passing an ex parte order without there being sufficient opportunity to the assessee in the facts and circumstances of the case.

3.

The ld. AR submits that the assessee did not receive any notice from the CIT-A, thereby the assessee had no opportunity for substantiating the claim of assessee. Thus, he sought to remand the issue(s) to the file of the CIT-A and to consider the grounds raised before him by the assessee and to pass a fresh order as per law.

4.

On the other hand, the ld. DR objected to the above submissions of assessee and referred to para 2 of the impugned order of the CIT-A and argued that hearing was fixed on 19-03-2015 vide notice issued on 26-02-2015. But on that day neither the assessee nor any written reply was filed before him. Thereafter, the CIT-A issued seven (7) notices, but there was no compliance from the assessee. In such circumstances, the ld.DR prayed to dismiss the appeal of assessee.

5.

Heard the rival submissions and perused the material on record. We find that the assessee raised as many as eight grounds of appeal before the CIT-A challenging the assessment order is bad in law and also disallowances made u/s. 40(a)(ia), on account of sundry balances written off, u/s. 43B and on account of TDS etc. Admittedly, there was no representative of the assessee before the CIT-A as would be seen from the impugned order of the CIT-A. Therefore, considering the submissions of the 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 with the direction that he shall consider the grounds of appeal afresh and to pass a fresh order as per law, after giving the assessee adequate opportunity of hearing to the assessee. The assessee is also directed to co-operate with the CIT and not to seek any adjournment before the CIT-A for speedy disposal of the issue(s). The assessee shall be at liberty to file requisite evidences, if any, to substantiate its claims. Therefore, the grounds raised by the assessee are allowed for statistical purposes.

6.

In the result, the appeal of the assessee is allowed for statistical purpose. Order pronounced in the open court on 15-11-2017

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