M/S ASCO,KOLKATA vs. ITO, WD-33(2), KOLKATA, KOLKATA

The only issue is to be decided in this appeal as to whether the CIT-A is justified in passing the ex-parte order without considering the adjournment petition filed before him and in the facts and circumstances of the case.

Brief facts of the case are that the assessee is an individual and is a civil contractor. The assessee filed his return of income declaring total income at Rs.2,68,596/-. Under scrutiny, notices u/s. 143(2) and 142(1) M/s. ASCO-Prop: Arun Sarkar 1 of the Act were issued. In response to which the assessee produced contract receipts of Rs.75,71,682/- and declared profits at Rs.3,30,420/- The AO determined the total income at Rs.18,81,357/- and to that effect an order u/s. 143(3) of the Act by an order passed u/s. 143(3) of the Act on 11-12-2009.

In challenge the same before the CIT-A, the CIT-A held that notices fixing the hearing were issued on 23/01/2015, 18/02/2015, 23/02/2015 & 22/02/2016. But there was no compliance on the part of the assessee. Accordingly, he dismissed the appeal of assessee for non compliance of the same.

Before us the ld.AR of the assessee argued that the assessee had prayed for adjournment vide petition dtd. 22.02.2016 stating that the Counsel of the assessee was out of station and sought adjournment before the CIT-A to fix any date in the 1st week of April, 2016. A copy of the same is placed on record and without considering the same, the CIT- A passed an ex parte order.

On the contrary, the Ld. DR relied on the orders of authorities below.

Heard rival submissions and perused the material available on record. We find that the CIT-A issued four notices to the assessee for the hearing. We also find that before us, the ld.AR of the assessee placed a copy of adjournment application as stated above, wherein it is noticed that the assessee requested before the CIT-A to fix any date in the 1st week of April, 2016 and the CIT-A passed an ex parte order without considering the said adjournment application dtd. 22-02-2016 , which is placed on record before us. 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 issue(s) to the file of CIT-A for fresh adjudication. The assessee shall be at liberty to M/s. ASCO-Prop: Arun Sarkar 2 file/produce evidences, if any to substantiate his claim and shall co- operate with the CIT-A in further appellate proceeding. Accordingly, the grounds raised by the assessee are allowed for statistical purpose. In the result, the appeal of assessee is allowed for statistical purpose. 8.