KAVANOOR SRINIVASAN SRIDHAR,CHENNAI vs. ITO SALARY WARD VI(2), CHENNAI

In the instant case, ld. Assessing Officer in his order u/s 143(3) of the Act has disallowed and added back the cash flow statement for the period, jewel loan etc.

Further, the appellant filed the appeal against the order under section 143(3) of the Act dated 31.12.2009 before the Ld. CIT(A) wherein the assessee did not appear before the first appeal authority. Accordingly, the assessment was confirmed on merits and appeal was disposed of ex-parte on the basis of statements of facts filed by the Assessee against which assessee is in further appeal before us.

At the outset, Ld. Counsel for the appellant submitted that Ld. CIT(A) had not followed the principles of natural justice and failed to search on Income Tax portal the replies filed by the Assessee in response to such notices. Ld. Counsel for the appellant further prayed that if an adequate opportunity of hearing is given to appellant, appellant would prosecute its case properly before the Ld. CIT(A).

On the other hand, the Ld. Sr. DR pleaded for dismissal of the appeal on the ground that the assessee failed to appear before the ld. first appellate authority in response to various notices.

We have heard the rival contention and perused the material on record. Though we concur with the submissions of Ld. Sr. DR however keeping in mind the principle of natural justice and grant another opportunity of hearing to the assessee. Accordingly, the impugned order is set aside and the appeal is restored back to the file of Ld. CIT(A) for adjudication on merits after affording proper opportunity of hearing to the assessee. The assessee is directed to substantiate its case forthwith without any fail, failing which Ld. CIT(A) shall be at liberty to proceed with the disposal of the appeal on merits.