THE BISRA STONE LIME CO. LTD.,KOLKATA vs. ACIT, CIR-5, KOLKATA, KOLKATA

The assessee in the present case is a Company, which is engaged in the business of Mining and sale of Limestone and Dolomite. The return of income for the year under consideration was filed by it on 15.10.2004 declaring a loss of Rs.47,70,86,527/-. In the assessment completed under section 143(3) vide an order dated 22.12.2006, the total income of the assessee was determined by the Assessing Officer at a loss of Rs.47,48,08,401/- after making the following three additions:- ./2014 Assessment year: 2004-2005 Page 2 of 3 (i) Disallowance of provision for doubtful Rs.4,84,643/- debts (ii) Disallowance of provision for non-moving Rs.8,28,290/- stores (iii) Disallowance of miscellaneous expenses Rs.9,65,193/- written off

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 all the three additions made by the Assessing Officer to its total income. During the course of appellate proceedings before the ld. CIT(Appeals), there was no response from the assessee’s side to the notices issued by the ld. CIT(Appeals) fixing the said appeal for hearing from time to time. The ld. CIT(Appeals), therefore, concluded that the assessee was not interested to pursue its appeal filed before him and proceeded to dismiss the same for non-prosecution vide his appellate order dated 03.02.2014 passed ex-parte, which is impugned by the assessee in the present appeal filed before the Tribunal.

We have heard the arguments of both the sides and also perused the relevant material available on record. As submitted by the ld. counsel for the assessee, there was a change in the address of the assessee-company during the relevant period and although the same was informed to the Department, the ld. CIT(Appeals) continued to send the notices of hearing to the old address apparently because the change in address was not specifically communicated to his Office. Keeping in view this submission made by the ld. counsel for the assessee, we are satisfied that the appeal of the assessee filed before the ld. CIT(Appeals) has been dismissed by him vide his impugned order passed ex-parte without giving any effective opportunity of being heard to the assessee and there is a clear violation of principle of natural justice. We, therefore, set aside the said order of the ld. CIT(Appeals) and remit the matter back to him for disposing of 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 ./2014 Assessment year: 2004-2005 Page 3 of 3 assessee at the time of hearing before us, the assessee shall make proper and sufficient compliance before the ld. CIT(Appeals) in order to enable him to dispose of the appeal on merit expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on February 03, 2017.