JYOTI TEXTILES,KOLKATA vs. JCIT, RANGE-48, KOLKATA, KOLKATA

The assessee in the present case is a partnership firm, which is engaged in the business of trading in cloth. The return of income for the year under consideration was filed by it on 23.09.2010 declaring total income of Rs.3,96,740/-. In the assessment completed under section 143(3) vide an order dated 22.11.2012, the total income of the assessee was determined by the Assessing Officer at Rs.22,67,410/- after making the following additions:- (i) Undervaluation of closing stock.............Rs. 4,91,513/-; (ii) Disallowance of trading discount..........Rs. 3,07,370/-; ./2015 Assessment year: 2010-2011 Page 2 of 3

Against the order passed by the Assessing Officer under section 143(3), an appeal was preferred by the assessee before the ld. CIT(Appeals). During the course of appellate proceedings, there was no response to the notices issued by the ld. CIT(Appeals) fixing the appeal of the assessee on four different dates. He, therefore, proceeded to dispose of the appeal of the assessee ex parte and dismissed the same by observing that there was no reason or basis for him to interfere with the order of the Assessing Officer making various additions to the total income of the assessee. Aggrieved by the order of the ld. CIT(Appeals), the assessee has preferred this appeal before the Tribunal.

I have heard the arguments of both the sides and also perused the relevant material available on record. The ld. counsel for the assessee has submitted that none of the four notices issued by the ld. CIT(Appeals) fixing the appeal of the assessee for hearing was received by the assessee. He has also filed an affidavit of the assessee in support of this contention and keeping in view the same, I find that the appeal of the assessee has been disposed of by the ld. CIT(Appeals) by his impugned order passed ex parte without giving proper and sufficient opportunity of being heard to the assessee and there is a violation of principle of natural justice. I, therefore, set aside the said order of the ld. CIT(Appeals) and remit the matter back to him for disposing of the appeal of the assesese afresh on merit after giving one more opportunity of being heard to the assessee. As undertaken by the ld. counsel for the assessee at the time of hearing ./2015 Assessment year: 2010-2011 Page 3 of 3 before me, the assessee shall pursue the matter with the ld. CIT(Appeals) and extend all possible cooperation to the ld. CIT(Appeals) in order to dispose of its appeal expeditiously.

In the result, the appeal of the assessee is treated as allowed for statistical purposes. Order pronounced in the open Court on July 20, 2016.