P. CHANDA BUILDERS,KOLKATA vs. ITO, WD-2(3), ASANSOL, ASANSOL

The only issue is to be decided in this appeal as to whether the CIT- A is justified in passing the order for non appearance of assessee or its authorised representative before him in the facts and circumstances of the case.

The assessee is a firm and is a contractor. The assessee filed its return of income declaring total income at Rs.3,31,285/-. Under scrutiny, notices u/s. 143(2) and 142(1) of the Act were issued. In response to which the assessee produced audit report in form no.3CB & 3CD and other papers/documents/information as sought by the AO. Accordingly, the AO determined the total income of assessee at Rs.54,02,710/- 1 M/s. P Chanda Builders making various additions u/s. 68 and 40A(3) of the Act and to that effect an order u/s. 143(3) of the Act was passed on 31-10-2011.

As aggrieved by such order of the AO, the assessee preferred an appeal before the CIT-A, wherein he passed an ex parte order for non appearance of assessee or its authorised representative in prosecuting the appeal by observing that the assessee failed to produce any evidence to rebut the additions as made by the AO.

Before us the Ld.AR of the assessee submits that with regard to ground nos. 1 and 5 as raised before the CIT-A were dismissed for non production of any evidence. He also filed before us the paper book containing pages 1 to 6 to show the receipts of cash towards advance received from customers. He further argued that these documents were not filed before the lower authorities and urged to remand the appeal to the file of the CIT-A for fresh adjudication.

The Ld. DR has relied on the orders of the authorities below.

Heard rival submissions and perused the material available on record. We find that the CIT-A has categorically observed vide para 4 of his order that there was non appearance of assessee or its authorised representative. We find that the CIT-A dismissed the appeal ex parte discussing that the assessee could not produce any evidence in respect of its claim particularly as found by him in paras 6 & 8 of his order. Admittedly, these documents as filed before us by the assessee by way of paper book were not filed before the authorities below. In such circumstances in the interest of justice and taking into consideration the submission as submitted by the Ld.AR before us, we deem it fit and proper to remand the appeal to the file of CIT-A for fresh adjudication to dispose of the appeal on merits and to pass an order in accordance with law. The assessee shall be at liberty to file/produce evidences, if any, to substantiate its claim and shall co-operate with the CIT-A in appellate proceedings. Accordingly, the grounds raised by the assessee are allowed for statistical purposes. In the result, the appeal of assessee is allowed for statistical purposes. 8.