THE WATERBASE LIMITED,KOLKATA vs DCIT, CIRCLE-5(1), KOLKATA, KOLKATA

Income Tax Appellate Tribunal, KOLKATA ‘SMC’ BENCH, KOLKATA

Before: Shri P.M. Jagtap

Date of concluding the hearing : September 26, 2017 Date of pronouncing the order : September 26, 2017

O R D E R Per Shri P.M. Jagtap, A.M..: This appeal filed by the assessee is directed against the order of ld. Commissioner of Income Tax (Appeals)-2, Kolkata dated 06.01.2017 passed ex-parte.

The assessee in the present case is a Company, which is engaged in the business of Aqua Culture and trading of Fish, Crab and Fish Feed. The return of income for the year under consideration was filed by it on 28.09.2012 declaring total income at ‘NIL’ and book loss of Rs.6,84,76,528/- under section 115JB of the Act. In the assessment completed under section 143(3) vide an order dated 25.02.2015, the ./2017 Assessment year: 2012-2013 Page 2 of 4 following additions were made by the Assessing Officer to the total income of the assessee:- (i) Disallowance of capital expenses Rs. 1,52,969/- (ii) Disallowance of depreciation Rs. 30,548/- (iii) Disallowance of Puja expenses Rs. 3,09,388/- (iv) Undisclosed income Rs.11,62,973/- (v) Disallowance under section 14A Rs. 19,352/-

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals) challenging the various additions made by the Assessing Officer to its total income 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(Appeals) dismissed the appeal of the assessee by his appellate order dated 06.01.2017 passed ex-parte. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

4. I have heard the arguments of both the sides and also perused the relevant material available on record. In the preliminary issue raised in Ground No. 1 of this appeal, the assessee has challenged the impugned order passed by the ld. CIT(Appeals) on the ground that no proper and sufficient opportunity of being heard was given by the ld. CIT(Appeals) to the assessee, which is in violation of principle of natural justice. In this regard, an affidavit has been filed on behalf of the assessee explaining the reasons for non-appearance before the ld. CIT(Appeals) as under:- “2. That the Company had received notices dated 10th August, 2016, 20th October, 2016 and 13th December, 2016 from the Commissioner of Income Tax Appeals-2 in respect of Appeal No. 50/CIT(A)-2/15-16 for the assessment year 2012- 2013.

3. That the responsibility of attending to and complying with all income tax matters was entrusted to Mr. S. Majumder son of Shri Bhupal Majumder as an Authorized Representative of ./2017 Assessment year: 2012-2013 Page 3 of 4

the company. That Mr. S. Majumder had also appeared before the Assessing Officer during the assessment proceedings for the assessment year 2012-2013.

The said Mr. S. Majunder neither attended to the notices of the Commissioner of Income Tax (Appeals)-2 and nor did he inform the company with regard to the non-compliance of the same and has subsequently resigned from the services of the company.

5. That as a result of the same the said notices were not complied with by the company and as ex-parte order dated 26th December, 2016 was passed by the Commissioner of Income Tax (Appeals)-2”.

Keeping in view the reasons given by the assessee as above, I am satisfied that there was a sufficient cause for non-compliance on the part of the assessee to the notices issued by the ld. CIT(Appeals) fixing the appeal of the assessee for hearing from time to time. Even the ld. D.R. has not raised any material objection in this regard. I, therefore, set aside the impugned order passed by the ld. CIT(Appeals) dismissing the appeal of the assessee ex-parte and remit the matter back to him for deciding the appeal of the assessee afresh on merit after giving one more opportunity of being heard to the assessee. As undertaken by the ld. counsel for the assessee at the time hearing before the Tribunal, the assessee shall make due compliance before the ld. CIT(Appeals) and shall extend all the possible cooperation to the ld. CIT(Appeals) in order to enable him to dispose of the said appeal expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on September 26, 2017.

THE WATERBASE LIMITED,KOLKATA vs. DCIT, CIRCLE-5(1), KOLKATA, KOLKATA