Dilwara Leasing & Investment Ltd., ... vs Assessee

1. This appeal filed by the assessee is directed against the order of CIT(A)-V,

New Delhi passed on 07.01.2013 for the assessment year 2007-08 wherein the

assessee has raised the following grounds of appeal:-

"1. In making an addition of Rs.5,01,012/- on account of alleged interest free loan to a body corporate when the same was for financing in Real Estate, being the appellant business.

2. In not providing effective opportunity to represent the case."

2. The Ld. AR submitted that due to some communication gap between the

assessee and his counsel the first appeal was not properly represented and noting

down the several dates fixed for hearing and issuance of notices for the same, the

Ld. CIT(A) dismissed the appeal by following the decision of the Tribunal in the

case of CIT Vs. Multiplan India Pvt. Ltd. reported in 38 ITD 320 (Del). The Ld. ITA No 1920/DEL/14 2

AR submitted further that in case the assessee or his counsel was not able to

appear before the Ld. CIT(A) on the date fixed, the Ld. CIT(A) was supposed to

decide the appeal ex-parte on the basis of material available on record.

3. The Ld. DR on the other hand, opposed the appeal with this contention that

the assessee does not deserve any relief since despite ample opportunities

afforded to it, the assessee did not bother to avail it before the Ld. CIT(A).

4. Considering the above submission, I agree with the contention of the Ld.

DR that the assessee does not deserve any relief since despite several

opportunities afforded by the Ld. CIT(A) to it, the assessee did not avail it but at

the same time there is also substance in the contention of the Ld. AR that even in

case of ex-parte proceeding the Ld. CIT(A) was supposed to decide the appeal on

merits on the basis of material available on record instead of dismissing the same

in default. I, thus, in the interest of justice, set aside the matter to the file of the

Ld. CIT(A) with direction to decide the first appeal afresh on its merit after

affording opportunity of being heard to the assessee. The assessee is also directed

to cooperate with the Ld. CIT(A) in the proceedings.

5. In the result, appeal of the assessee is allowed for statistical purposes.

(Order pronounced in the open Court on 30.06.2015)

Sd/-

(I.C. SUDHIR) JUDICIAL MEMBER Dated: 30.06. 2015.

Aks ITA No 1920/DEL/14 3

Copy forwarded to

1. Appellant

2. Respondent

3. CIT

4. CIT(A)

5. DR Asst. Registrar, ITAT, New Delhi