INCOME TAX ACT, 1961

Section 250(6)

Appeal [CIT(A)] - Ex-parte order - Adequate opportunity of being heard to assessee -

Assessee company was a NBFC company. During the course of assessment proceedings, assessee company was asked to explain the amount of accommodation entry received by the company from an Agro-company. Assessee submitted the confirmation from the Agro Farming along with copy of ITR, balance sheet and bank statement before AO who made addition under section 68 as well as made addition in respect of commission. CIT(A) passed ex-parte order without giving opportunity of hearing to the respective assessee. Therefore, assessee submitted that both the matters may be remanded back to the file of the Commissioner (Appeals) for deciding the appeals afresh on merit. Held: From the perusal of order of CIT(A) can be seen that the notices were issued to assessee and on two occasions, assessee sought time before CIT(A). The respective assessees have not made out any case as regards to the non-appearance before CIT(A), despite giving proper opportunity. Therefore, imposing cost of Rs. 5,000 in each case which should be paid by respective assessee to the Prime Minister's relief fund. CIT(A) had not discussed the merit of the case and passed ex-parte order. It would be appropriate to remand back this issue in entirety to the file of the CIT(A) to decide the issue on merits.

REFERRED :

FAVOUR : Partly in assessee's favour by way of remand

A.Y. : 2011-12

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