R.D.M. Care (India) Pvt. Ltd., New Delhi vs Assessee

This appeal, preferred by the assessee, is directed against the order dated 17-01-2013, passed by the CIT(Appeals)-XVIII, New Delhi in appeal no. 373/11-12, relating to A.Y. 2009-10.

2. The assessee has raised as many as 4 grounds to challenge the order of the learned CIT(Appeals). The CIT(A) vide his impugned order has dismissed the appeal filed by the assessee, in limine, for want of prosecution qua the assessee, by observing as under:

(3) As per record, the appeal was fixed for hearings on 2

16.10.2012, 31.10.2012, and 2,6.11.2012 by issue of notice u/s 250 dated 17.09.2012, 17.10.2012, and 06.11.2012, which was sent through speed post Notice was not received back un-served from the postal authorities. Still on the said dates, no one appeared nor any adjournment application was filed by the appellant. A final notice for hearing was issued on 06.12.2012 fixing the case for 17.12.2012. Notice was not received back unserved, but still there was no compliance on the part of the appellant. Another final notice was against issued on 21.12.2012 fixing the case for 16.01.2013, on the said date, compliance in the form of adjournment application requesting for adjournment for a month was received from the appellant.

3.1 From the above, it is apparent that the appellant is not interested in pursuing the appeal. Under the circumstances, due to continued and persistent non-compliance by the appellant to successive notices issued by this office, it is not possible to proceed with this appeal. The same is, therefore, dismissed."

3. Ld. counsel for the assessee has submitted that main director of the company, Dilvinder Singh Narang, suddenly died on 11-08-2012, leading to many changes in the directorships of the company. The CIT(A), without taking into cognizance of these developments rejected the assessee's request for adjournment of hearing on 16-1-2013, resulting into dismissing of assessee's appeal in limine for want of prosecution, qua the assessee. Ld. counsel submitted that since assessee was prevented by sufficient cause in not pursuing his appeal before the CIT(A) on the appointed date, the order of CIT(A) may be set aside and the appeal may be remited back to the file of CIT(A) with a direction to decide the grounds of appeal on merit by passing a reasoned order, after hearing the assessee.

4. Ld. DR supported the order of ld. CIT(A).

3 5. We have heard rival submissions and perused the material available on record. In our considered opinion the order passed by the learned CIT(Appeals) cannot be accepted in the eye of law. The ld. learned CIT( A), being first appellate authority, ought to have disposed of the issues raised before him on merits. In any view of the matter, the order of the learned CIT(A) is set aside and the matter is restored to him with the direction to pass a reasoned order, on the grounds of appeal raised before him, in accordance with law, after affording reasonable opportunity of being heard to the assessee. We order accordingly.

6. In the result, assessee's appeal is allowed for statistical purp.oses. Order pronounced in open court on 23 -01-2015.

Sd/- Sd/- ( H.S. SIDHU ) ( S.V. MEHROTRA ) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23-01-2015. MP Copy to : 1. Assessee 2. AO 3. CIT 4. CIT(A) 5. DR