MERU IMPEX,MUMBAI vs. ADDL CIT 15(1), MUMBAI

None appeared on behalf of the assessee even though notice of hearing was sent by registered post to the assessee. Hence, we proceed to dispose of the appeal ex-parte, without presence of the assessee.

We have heard learned Departmental Representative and perused the record. We noticed that the assessee has filed return of income declaring loss of ` 3.34 crores. Since the assessee did not furnish details that were called for by the Assessing Officer, the Assessing Officer disallowed the entire amount of loss and determined total income at nil figure. Subsequently, the AO levied a penalty of ` 1.13 crores on the addition so made by him. The assessee challenged the penalty order by filing the appeal before the learned CIT(A).

Aggrieved with the order of Ld CIT(A), the assessee has filed this appeal before us.

As stated earlier, the learned CIT(A) has dismissed the appeal of the assessee in limine, as the assessee did not appear before him. In our view, the learned CIT(A) should have adjudicated the appeal of the assessee on merit. Hence, we are of the view that this appeal needs to be restored back to the file of the learned CIT(A). Accordingly, we set aside the order passed by the learned CIT(A) and restore the matter to his file with the direction to dispose of the appeal on merit after serving due notice to the assessee. We also direct the assessee to appear before Ld CIT(A) for expeditious disposal of the appeal.

In the result, the appeal filed by the assessee is treated as allowed for statistical purposes. Order has been pronounced in the Court on 21.3.2017.