TOPTANS,KOLKATA vs. ACIT, CIR-32, KOLKATA, KOLKATA

The assessee in the present case is a partnership firm, which is engaged in the business of manufacturer and exporter of leather and leather goods. The return of income for the year under consideration was filed by it on 29.09.2010 declaring total income of Rs.13,65,040/-. In the assessment completed under section 143(3) vide an order dated ./2015 Assessment year: 2010-2011 Page 2 of 3 19.03.2013, the total income of the assessee was determined by the Assessing Officer at Rs.22,73,845/- after making the following additions:- (i) Trading addition on account of low G.P....... Rs.4,83,170/-; (ii)Disallowance under section 43B.....................Rs.11,880/-; (iii) Disallowance of Export Promotion Expenses....Rs.2,79,113/- & (iv) Disallowance out of Tour & Travel Expenses......Rs.1,34,642/-.

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals). Since there was no compliance on the part of the assessee to the notices issued by him fixing the appeal of the assessee for hearing from time to time, the ld. CIT(Appeals) dismissed the appeal of the assessee in limini vide his appellate order passed ex parte, which is impugned by the assessee in the present appeal filed before the Tribunal.

I 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, written submissions to be filed before the ld. CIT(Appeals) were duly prepared by the assessee but the case of the asessee could not be presented and the written submissions could not be filed before the ld. CIT(Appeals) as the Accountant of the assessee suddenly fell ill on the last date of hearing fixed by the ld. CIT(Appeals) on 19.08.2015. As further submitted by him, the ld. CIT(Appeals) in any case ought to have disposed of the appeal of the assessee on merit and he was not justified in dismissing the appeal of the assessee in limine on account of non- prosecution without going into the merit of the case. In this regard, he has referred to the provisions of sub-section (6) of section 250, whereby the ld. CIT(Appeals) is required to dispose of the appeal of the assessee by an order passed in writing stating therein the points for determination, the decision thereon and the reasons for the decision. Keeping in view this specific provision contained in sub-section (6) of section 250, we find merit in the contention of the ld. counsel for the assessee that the impugned order passed by the ld. CIT(Appeals) ./2015 Assessment year: 2010-2011 Page 3 of 3 dismissing the appeal of the assessee in limine for want of prosecution without going into the merits of the issues raised therein is not in accordance with law. I, therefore, set aside the said order and remit the matter back to the ld. CIT(Appeals) for deciding the appeal of the assessee afresh on merit in accordance with law after giving proper and sufficient opportunity of being heard to the assessee.

In the result, the appeal of the assessee is treated as allowed. Order pronounced in the open Court on August 05, 2016.