SLO STEELS LTD,CHENNAI vs. INCOME TAX OFFICER, CHENNAI

This appeal by the assessee is filed against the order of the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC), Delhi, for the assessment year 2018-19, vide order dated 02.11.2023.

The brief facts are that, the assessee is a limited company engaged in wholesale trading of iron and steel scraps and products. The assessee has filed its return of income for :-2-: ITA. No: 1641/Chny/2023 the assessment year 2018-19 on 31.10.2018. The case was selected for complete scrutiny assessment under E-assessment scheme and accordingly, notice was issued u/s. 143(2) of the Income-tax Act, 1961 (hereinafter referred to as “the Act”) dated 22.09.2019. The assessment has been completed by National e-assessment center, Delhi, after giving sufficient opportunities of obtaining the details required for assessment from the assessee and passed assessment order on 16.04.2021, by making additions of Rs.16,75,000/- as unexplained cash credit u/s. 68 of the Act stating that the assessee has failed to justify source of cash deposits made during the year.

Aggrieved by the assessment order, the assessee filed an appeal before the ld. CIT(A) on 08.05.2021. Subsequently, the first appellate authority issued four notices by fixing the hearing dates from 12.01.2022 to 19.10.2023 and passed an exparte order dated 02.11.2023, confirming the Assessing Officer’s order. Aggrieved by the order of the ld. CIT(A), the assessee has preferred this appeal before us.

We have heard the rival contentions and gone through the facts and circumstances of the case. We noted that assessee is engaged in wholesale trading of iron and steel scraps and products and due to non-participation before the CIT(A) by the assessee and hence, the exparte order has been passed by the First Appellate Authority. The plea of the assessee was that the non-appearance/participation was not deliberate and the ld. AR undertakes to appear before the authorities, provided an opportunity is given. Since, exparte order has been passed, we deem it fit to restore the issue back to the ld. CIT(A), since there is violation of natural justice and non-compliance of sub-section (6) of section 250 of the Act and direct the CIT(A) to adjudicate the issue, after providing reasonable opportunity to the assessee. Needless to say, assessee to be diligent and is given liberty to file written submissions and relevant documents if advices to do so during the appellate proceedings and the ld. CIT(A) to pass speaking order in accordance to law.