M/S. REWARD TIE UP PVT. LTD.,KOLKATA vs. DCIT, CC-X, KOLKATA, KOLKATA

The assessee in the present case is a company which is engaged by in the business of cloth trading. The return of income for the year under consideration was filed by it on 31.03.2009 declaring total income at nil. Although, the said return was initially processed by the A.O. under section 143(1) of the Act, he reopened the assessment subsequently and issued a notice under section 148 on 30.07.2010 after recording the reasons. In pursuance of the said notice, the assessment under section 143(3) / 147 of the Act was 2 completed by the A.O. vide an order dated 21.12.2010. The said order however, was set aside by the ld. CIT vide order dated 22.03.2013 passed under section 263 of the Act. In pursuance of the order passed by the ld. CIT under section 263, fresh assessment proceedings were initiated by the A.O. and since there was no satisfactory compliance on the part of the assessee to the notice issued by him during the course of the said proceeding, assessment was completed by the A.O. to the best of his judgement on the basis of material available on record under section 143(3) / 147 / 263 / 144 of the Act. In the assessment so completed, total income of the assessee was determined by the A.O. at Rs. 9,62,02,600/- after making an addition of Rs. 9.62 crore on account of share capital and premium by treating the same as unexplained.

Against the order passed by the A.O. under section 143(3) / 147 / 263 / 144, the appeal was preferred by the assessee before the ld. CIT(A) and since there was no satisfactory compliance on the part of the assessee for the various notices issued by him fixing the said appeal for hearing from time to time, the ld. CIT(A) dismissed the said appeal filed by the assessee vide appellate order dated 07.11.2014 passed ex-parte. Aggrieved by the said order, the assessee has preferred an 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), ex-parte on the ground that proper and sufficient opportunity of being heard has not been given by the ld. CIT(A). In order to support and substantiate the case of the assessee on this issue, an affidavit made by the Director of the assessee-company is filed before us wherein the non-compliance during the course of appellate proceedings before the ld. CIT(A) is explained as under: