M/S HIND PALACE PVT. LTD.,KOLKATA vs. ACIT, CC-IV, KOLKATA, KOLKATA

The Assessee is a company. For A.Y. 2007-08 the assessee filed return of income declaring ‘nil’ income. The assessee however was liable to pay tax of book profit u/s 115JB of the Income Tax Act, 1961 (Act) and the book profit was declared at a sum of Rs.14,64,984/-. The assessment was completed determining the total income of the assessee under the normal provision of the Act at Rs.19,69,712/-.

Aggrieved by the order of AO the assessee filed appeal before CIT(A). According to CIT(A) the appeal was fixed for hearing on several occasions and the assesee sought adjournment on one ground or the other. When the case was fixed for hearing on 19.03.2014 and the AR of the assessee requested for another adjournment. The case was adjourned to 28.03.2014. On 28.03.2014 none appeared on behalf of the assessee. The CIT(A) therefore dismissed the appeal of the assessee by observing that the assessee was not interested in pursuing the appeal and there was nothing brought on record to support the grounds of appeal

The ld. Counsel for the assessee who appeared in the proceedings before CIT(A) has filed an affidavit in which he has submitted that on 28.03.2014 when the appeal was listed for hearing before CIT(A), he fell sick and was unable to attend the hearing or to seek an adjournment. On 31st March, 2014 i.e., the next working day the counsel appeared before CIT(A) and was informed that the appeal has already been decided ex-parte. The ld. Counsel for the assessee prayed that the order of CIT(A) should be set aside and CIT(A) should be directed to decide the appeal on merits after taking into consideration of the submissions on behalf of the assessee.

I have considered the submissions of the ld. Counsel for the assesse and I am of the view that there was a reasonable cause for non appearance of the AR before CIT(A) on 28.03.2014. In the interest of justice I am of the view that the order of CIT(A) should be set aside and the assessee should be afforded opportunity of being heard before CIT(A). I accordingly set aside the order of CIT(A) and direct CIT(A) to decide the appeal of the assessee on merits after affording the assessee an opportunity of being heard. 7. In the result for statistical purposes the appeal of the assessee is treated as allowed. Order pronounced in the Court on 02.09.2016. Sd/- [ N.V.Vasudevan ] Judicial Member Dated : 02.09.2016. [RG PS] Copy of the order forwarded to: 1.M/s Hind Palace Pvt.Ltd., C/o Salarpuria Jajodia & Co., 7, C.R.Avenue, Kolkata- 700072. 2. ACIT, Central Circle-IV, Kolkata. 3. C.I.T.(Appeals)-Central-I, Kolkata. 4. C.I.T.-Central-I, Kolkata. 5. CIT(DR), Kolkata Benches, Kolkata.