HOTEL PARBAT PVT. LTD.,MALDA vs. DCIT, MALDA CIRCLE, MALDA, MALDA

As noted, at the outset, there is a delay of 21 days on the part of the assessee in filing this appeal before the Tribunal. In this regard, the assessee has filed an application seeking condonation of the said delay and keeping in view the reasons given therein, I am satisfied that there was a sufficient cause for the delay on the part of the assessee in filing this appeal before the Tribunal. The ld. D.R. has not also raised any objection in this regard. I, therefore, condone the said delay and proceed to dispose of the appeal of the assessee on merit. ./2015 Assessment year: 2007-2008 Page 2 of 4

The assessee in the present case is a Company, which is engaged in the business of running hotel. The return of income for the year under consideration was filed by it on 15.11.2007 declaring total income at ‘nil’. During the course of assessment proceedings, the assessee could not produce the books of account and other supporting documents despite sufficient opportunity afforded by the Assessing Officer. The Assessing Officer, therefore, had no option but to complete the assessment to the best of his judgment under section 144. In the assessment so completed vide an order dated 26.11.2009, sundry creditors amounting to Rs.19,05,839/- and share application money amounting to Rs.10,00,000/- were added by the Assessing Officer to the total income of the assessee by treating the same as income of the assessee from undisclosed sources.

Against the order passed by the Assessing Officer under section 143(3) /144, an appeal was preferred by the assessee before the ld. CIT(Appeals). During the course of appellate proceedings before the ld. CIT(Appeals), written submissions were filed by the assessee, which were forwarded by the ld. CIT(Appeals) to the Assessing Officer for the later’s comments. As mentioned by the ld. CIT(Appeals) in his impugned order, reminders were also issued by him to the Assessing Officer for submitting the remand report expeditiously. The assessee also did not appear before the ld. CIT(Appeals) on the dates fixed for hearing. The ld. CIT(Appeals), therefore, proceeded to dispose of the appeal of the assessee ex parte and dismissed the same by passing the order as under:- “(1) This appeal is filed against the order u/s 143(3)/144 dated 26.11.2009 assessing the income at Rs.22,33,940/- against the returned income of NIL.

I have heard the arguments of both the sides and also perused the relevant material available on record. The ld. counsel for the assesssee has submitted that even though written submissions were filed by the assessee before the ld. CIT(Appeals), the same have not been considered by him while disposing of the appeal of the assessee by his impugned order passed ex parte. He has submitted that the said written submissions were duly forwarded by the ld. CIT(Appeals) to the Assessing Officer for the later’s comments but it is not clear from the impugned order of the ld. CIT(Appeals) as to whether the remand report was actually filed by the Assessing Officer. As per the provisions of sub-section 6 of section 250, it is incumbent upon the ld. CIT(Appeals) 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 reason for the decision. A perusal of the impugned order of the ld. CIT(Appeals) clearly shows that the same is not passed by the ld. CIT(Appeals) in accordance with the provisions of section 250(6) and even the ld. D.R. has not been able to dispute or controvert this position. I, therefore, set aside the said order and remit the matter back to the ld. CIT(Appeals) for disposing of the appeal of the assessee afresh on merit after giving the assessee proper and sufficient opportunity of being heard.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on July 14, 2016.