K.G.SHOE EXPORTS,KANPUR vs. A/DCIT CIRCLE-1(2)(1), KANPUR

(A) This appeal has been filed by the assessee for assessment year 2012- 13 against impugned appellate order dated 09/11/2023 (DIN & Order No.ITBA/NFAC/S/250/2023-24/1057849188(1) passed by learned Commissioner of Income Tax (Appeals) [“CIT(A)” for short].

(B) The facts of the case, in brief, are that the assessee is engaged in the business of manufacturing and selling of footwear. The assessee filed its return of income showing an income of Rs.28,15,490/- for the year under consideration. The Assessing Officer completed the assessment at a total income of Rs.78,19,850/- by making various additions. The assessee carried the matter in appeal before the learned CIT(A) who had passed an ex-parte order u/s 250 of the I.T. Act by confirming the additions made by the Assessing Officer on the ground that the assessee has failed to produce any submission/evidence in support of his case. Now the assessee is in appeal before the Income Tax Appellate Tribunal.

(B.1) At the time of hearing before us, the learned Counsel for the assessee submitted that learned CIT(A) has not decided the appeal on merits and instead the appeal of the assessee was dismissed taking adverse view of non compliance of notice of hearing issued by him. He further submitted that the issue regarding merits should be restored back to the file of the learned CIT(A) because the learned CIT(A) is duty bound to pass speaking order on merits. The learned Sr. Departmental Representative for Revenue expressed no objection to this.

(C) We have heard both sides. We have perused materials on record. We noted that learned CIT(A) has passed ex-parte order as according to him, nobody has appeared on the dates 08/09/2020, 08/02/2021, 11/08/2023 and 16/10/2023 when the appeal was fixed for hearing before him. From the order of CIT(A), it is apparent that the CIT(A) had issued various notices to the assessee however, neither anybody appeared nor filed written submissions and ultimately the CIT(A) passed the ex-parte order. However, looking into the overall facts and circumstances of the case and in the interest of substantial justice, since the order of the learned CIT(A) is cryptic and non-speaking, we deem it appropriate to restore appeal to the file of the learned First Appellate Authority with a direction to adjudicate all the grounds, raised by the assessee before him, on merits in accordance with law after giving proper opportunity of being heard to the assessee.

(C.1) In view of the foregoing and as representatives of both sides are in agreement on this; we set aside the impugned appellate order dated 09/11/2023 of the learned CIT(A) and we direct the learned CIT(A) to decide the appeal through denovo order which should be speaking order on merits in accordance with law after providing reasonable opportunity to the assessee and ensuring due compliance of requirements u/s 250(6) of the IT Act.

(D) In the result, the appeal is partly allowed for statistical purposes.

(Order pronounced in the open court on 11/12/2024)