PARAMOUNT HEALTH SERVICES (TPA ) P.LTD,MUMBAI vs. ASST CIT (TDS) 2(2), MUMBAI

Without prejudice to the merits of the case the stand of the assessee has been that the CIT(A) erred in passing exparte order and upholding the order passed by learned ACIT (TDS) under section 201(1) and 201(1A) on the ground of non appearance without appreciating the fact that no proper opportunity of hearing was given to the assessee. In this regard the stand of assessee is supported by affidavit through concerned Authorised Representative of the assessee. However, the Authorised Representative of the assessee appeared before the Commissioner in respect of A.Y. 2006-07 relating to interest payable on tax deducted at source. First hearing was fixed on 18.10.2013. On the request of assessee matter was adjourned to 06.01.2014 and 15.01.2014. The Authorised Representative of the assessee along with Shri Mahendra Sanghvi, Chartered Accountant attended the office of Commissioner at Aayakar Bhavan at about 12.30, i.e. at the time which was fixed as per notice.

However, on the appointed date it was informed by the office staff of the Commissioner that he was not in office and not likely to come. He accordingly informed that new notice will be issued after consultation with the Commissioner. Therefore the Authorised Representative of assessee left the office. Later on surprisingly an exparte order was received by assessee on 08.03.2004. In view of the above it was submitted that assessee was not provided due opportunity of hearing.

We find that the learned Authorised Representative of the assessee has deposed of the issue by way of an affidavit. Considering his version we are of the view that assessee was not provided due opportunity of hearing by concerned CIT(A) for the reasons discussed above. Therefore in the interest of justice we set aside the exparte order of the CIT(A) dated 27.02.2014 and restore the issue to him with a direction to decide the same as per fact and law after providing due opportunity of hearing to both the parties. Since we are restoring the matter on preliminary issue so we refrain from commenting on the merits of the issue at hand. Appeal filed by the assessee is allowed for statistical purposes.

Similar issue arose in 2007-08. Facts being similar we restore the issue with similar direction.

In the result, both the appeals of the assessee are allowed for statistical purposes. प�रणामतः िनधा�रती क� अपील� आंिशक �वीकृत क� जाती है । Order pronounced in the open court on 6th November, 2015. आदेश क� घोषणा खुले �यायालय म� �दनांकः 06.11.2015 को क� गई । Sd/- Sd/- (RAMIT KOCHAR) (SHAILENDRA KUMAR YADAV) लेखा सद�य/ACCOUNTANT MEMBER �याियक सद�य/JUDICIAL MEMBER मुंबई Mumbai, �दनांक Dated 6th November, 2015