IN INCOME TAX APPELLATE TRIBUNAL, BENCH KOLKATA [Before Hon ble Shri N.V.Vasudevan, JM & Dr.Arjun Lal Saini, AM ] ITA No.746/Kol/2016 Assessment Year : 2010-11 Mono Herbicides (P).Ltd. -versus- I.T.O., Ward-4(2), Kolkata Kolkata [PAN: AADCM 2725 L] (Appellant) (Respondent) For Appellant : Shri Miraj D.Shah, AR For Respondent : Md.Ghyas Uddin, JCIT Date of Hearing : 23.09.2016 Date of Pronouncement : 19.10.2016. ORDER Per Dr.Arjun Lal Saini, AM captioned appeal filed by assessee pertaining to A.Y.2010-11, is directed against order passed by Commissioner of Income Tax (A)-2, Kolkata in Appeal No.1203/CIT(A)-2/2014-15, dated 05.02.2016, which in turn arises out of order passed by Ld. Assessing Officer u/s 143(3) of Income Tax Act, 1961 (in short, Act) dated 19.03.2013. 2. facts of case are as stated in brief. Assessee company filed its return of income for A.Y.2010-11 on dated 21.09.2010 for total income of Rs.29,670/-. return was processed u/s 143(1) of Act, but subsequently case was selected for scrutiny u/s 143(3) of Act. AO has completed assessment u/s 143(3) by making addition u/s 40(a)(ia) of Act, and other disallowances. AO noticed that amount of Rs.2,92,116/- had been debited to profit and loss account under head Interest paid on unsecured loan . It was also found that no TDS had been made on such payments. It was thus clear violation of provisions of section 194A of Act and consequently attracted penal provisions of section 40(a)(ia) of Act. Since assessee could not file reply on time 2 ITA No.746/Kol/2016 Mono Herbicides Pvt.Ltd. A..Y.2010-11 therefore AO has disallowed entire amount and added to total income of assessee company. Aggrieved from order of ld. AO assessee has filed appeal before ld. CIT(A), who had also confirmed addition made by AO by observing followings :- In grounds of appeal, assessee has contested addition of Rs.2,92,116/- made U/s. 40(a)(ia) of Act for non-deduction of tax at source on payment of interest for unsecured loans. This apart, grounds are taken stating that AO erred in computation of tax. appeal was fixed for hearing first on 11/12/2015. director of assessee- company filed letter on 10/12/2015, seeking adjournment of hearing for three weeks. hearing was re-fixed on 22/12/2015 and duly acknowledged. Nobody attended or filed any written submission till date. It is thus presumed that assessee is not interested to pursue appeal and has nothing to say in defence of grounds taken. AO made addition of Rs.2,92,116/- for non-deduction of tax at source on payments of interest after due deliberation. There is nothing on record to controvert decision of AO. Therefore, addition of Rs.2,92,116/- is confirmed. So far as tax calculation is concerned, no corroborative evidence is found on record and therefore, assessee s claim cannot be entertained. 3. Not being satisfied with order of ld. CIT(A), assessee is in further appeal before us and has taken following grounds of appeal. 4. Although assessee has raised in this appeal multiple grounds of appeal, but at time of hearing grievance of assesse has been confined to issue that order has been passed by ld. CIT(A) without giving opportunity of being heard to assessee. solitary grievance of assessee is that order passed by ld. CIT(A) is without giving opportunity of being heard and therefore against principles of natural justice. 5. On other hand, ld. Departmental Representative for revenue has primarily reiterated stand taken by AO, which we have already noted in our earlier para, and is not being repeated for sake of brevity. 6. Having heard rival submissions, and perused materials available on record, we are of view that there is merit in submissions of assessee, as propositions canvassed by ld. AR for assessee are supported by facts 3 ITA No.746/Kol/2016 Mono Herbicides Pvt.Ltd. A..Y.2010-11 narrated by him above. As ld AR has rightly explained before us that no proper opportunity of being heard, has been given to him by ld. CIT(A).While going through order of ld. CIT(A), we noticed that he had not given sufficient opportunity to assessee of being heard and he passed order in hurry, which is against principles of natural justice. director of assessee company filed letter on 10.12.2015, seeking adjournment for hearing for three weeks before ld. CIT(A). hearing was re-fixed on 22.12.2015 and duly acknowledged. Nobody attended or filed any written submission till that date. Therefore ld. CIT(A) presumed that assessee is not interested to pursue appeal and has nothing to say in defence of grounds taken by him. This way, he has passed order by confirming action of ld. AO. As we have seen from order of ld. CIT(A) that he should have provided more opportunity to assessee and he is supposed to send one more reminding letter/serving final date of hearing to assessee. But he has failed to do so. assessee had taken adjournment and he was supposed to file written submissions but he could not come on that date fixed for hearing because of some reasons. At this juncture, it was duty of ld. CIT(A) to send another notice stating that final opportunity to assessee for hearing, but same has not been done by ld. CIT(A). Therefore we are of view that order passed by ld. CIT(A) is exparte order without giving opportunity to assessee for hearing, i.e. no sufficient opportunity has been given to assessee of being heard. Considering factual position, we are of view that this issue requires fresh examination of facts by ld.CIT(A). Therefore we deem it fit and appropriate to send back /remit issue back to ld. CIT(A) to decide appeal after giving adequate opportunity of being heard to assessee. 7. In result, appeal filed by assessee is allowed for statistical purposes. Order pronounced in court on 19.10.2016 Sd/- Sd/- [N.V.Vasudevan] [Dr.Arjun Lal Saini] Judicial Member Accountant Member Date: 19.10.2016. R.G.(.P.S.) 4 ITA No.746/Kol/2016 Mono Herbicides Pvt.Ltd. A..Y.2010-11 Copy of order forwarded to: 1. Mono Herbicides Pvt. Ltd., C/o D.J.Shah & Co., Kalyan Bhavan, 2, Elgin Road, Kolkata-700020. 2 I.T.O., Wd-4(2), Kolkata. 3. CIT(A)-2, Kolkata 4. CIT-2, Kolkata. 5. CIT(DR), Kolkata Benches, Kolkata. True Copy, By order, Deputy /Asst. Registrar, ITAT, Kolkata Benches Mono Herbicides (P).Ltd. v. I.T.O., Ward-4(2), Kolkata