M/S S. K. CONCRETE (P) LTD.,SILIGURI vs. ITO, WD-2(3), SILIGURI, SILIGURI

The assessee in the present case is a Company, which is engaged in the business of trading in iron and steel including scrap. The return of income for the year under consideration was filed by it declaring total income of Rs.1,37,600/-. In the assessment originally completed under section 143(3) vide an order dated 29.12.2010, addition of Rs.12,42,500/- was made by the Assessing Officer to the total income of the assessee on account of share application money treating the same as unexplained cash credits. On appeal, the ld. CIT(Appeals) confirmed the said addition made by the Assessing Officer. On further appeal, the ./2016 Assessment year: 2008-2009 Page 2 of 4 Tribunal restored the issue relating to the addition under section 68 to the file of the Assessing Officer with a direction to decide the same afresh. As per the direction of the Tribunal, a fresh order under section 143(3) read with section 254 was passed by the Assessing Officer on 31.03.2014, wherein he repeated the addition of Rs.12,42,500/- made on account of share application money treating the same as unexplained cash credits holding that the assessee could not substantiate the creditworthiness of the concerned creditors as well as the genuineness of the relevant transactions.

Against the order passed by the Assessing Officer under section 143(3) read with section 254, the assessee again went in appeal before the ld. CIT(Appeals). During the course of appellate proceedings before the ld. CIT(Appeals), the assessee sought adjournments of the hearings fixed on 5-6 occasions and granting the adjournments as sought by the assessee from time to time, the appeal of the assessee was finally fixed for hearing by the ld. CIT(Appeals) on 14.09.2015. On 14.09.2015, none, however, appeared on behalf of the assessee nor any written reply was filed. The ld. CIT(Appeals), therefore, presumed that the assessee had nothing to say in support of the ground taken in the appeal and accordingly he proceeded to confirm the addition made by the Assessing Officer on account of share application money thereby dismissing the appeal of the assessee. Against 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. It is observed that on most of the occasions when its appeal was fixed for hearing before the ld. CIT(Appeals), the assessee sought adjournments on one ground or the other. The ld. CIT(Appeals) also granted the adjournments as sought by the assessee from time to time and fixed the appeal of the assessee for hearing finally on 14.09.2015 and since the assessee failed to appear before him on the said date, the ld. CIT(Appeals) dismissed the appeal of ./2016 Assessment year: 2008-2009 Page 3 of 4 the assessee vide his impugned order passed ex parte presuming that the assessee had nothing to say in support of the ground raised in the appeal.

At the time of hearing before me, the ld. counsel for the assessee has submitted that Shri G.S. Hora, Chartered Accountant, who was authorized to represent the case of the assessee before the ld. CIT(Appeals) could not appear on 14.09.2015 owing to the sudden sickness of his family member and he also failed to file even the adjournment petition due to mental agony. He has also filed an affidavit of Shri G.S. Hora affirming the relevant facts on oath. Keeping in view this submission of the ld. counsel for the assessee, which is duly supported by the affidavit of the concerned Chartered Accountant, I am satisfied that there was a sufficient cause for the non-appearance on behalf of the assessee on 14.09.2015 when its appeal was fixed for hearing before the ld. CIT(Appeals). In that view of the matter, I set aside the impugned order passed by the ld. CIT(Appeals) ex parte and remit the matter back to him with a direction to dispose of the appeal of the assessee 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 before me, the assessee shall not seek any adjournment and shall extend all the possible cooperation in order to enable the ld. CIT(Appeals) to dispose of its appeal expeditiously.