IN INCOME TAX APPELLATE TRIBUNAL HYDERABAD B BENCH : Hyderabad Before Smt. P. Madhavi Devi, Judicial Member And Shri Mohan Alankamony, Accountant Member ITA No. 266/Hyd./2019 Assessment Year: 2015-16 Buildmate Projects P. Ltd. vs. ITO, Ward 1(3) Sy.No.60-62, Gundlapochampally Hyderabad Village Medchel, R.R. Dist. Hyderabad 14 (Appellant) (Respondent) For Assesse: Sh. Samuel Nagadesi, A.R. For Revenue: Sh. Nilanjan Dey, D.R. Date of Hearing : 19/09/19 Date of Pronouncement : 27/09/19 ORDER Per Smt. P. Madhavi Devi, J.M. This is assessee s appeal for A.Y. 2015-16 against order of CIT(A)-1, Hyderabad dated 22.01.2019. 2. Brief facts of case are that assessee company, engaged in business of manufacturing of cement blocks, filed its return of income for A.Y. 2015-16 originally on 30.9.2015 admitting income of Rs.2,57,75,938/-. Later, assessee filed its revised return of income on 18.4.2016 admitting same income. assessee s case was selected for scrutiny through CASS and during assessment proceedings u/s 143(3) of I.T.Act, 1961 (the Act), AO disallowed remittances of employees contribution to PF and ESI u/s 36(1)(va) of Act. He also disallowed sum of Rs.13,133/- being interest on TDS which is not allowable as expenditure and Rs.2,61,593/- being ROC charges incurred in connection with increase in authorised share capital u/s 37(1) of Act treating it as capital expenditure. He also disallowed taxes not paid before due date u/s 43B of Act. ITA No.266/Hyd/2019 AY: 2015-16 M/s Buildmate Projects P Ltd., Hyd. Subsequently rectification order u/s 154 of Act was also passed giving credit for TDS claimed in revised return of assessee. Aggrieved by assessment order, assessee filed appeal before CIT(A) who dismissed assessee s appeal only for reason that assessee did not appear on dates fixed for hearing and particularly on 21.1.2019. 3. Aggrieved assessee is in appeal before us raising following grounds of appeal. 1. General. 2. On facts and in circumstances of case, Ld.CIT(A) erred in law and on facts of case in confirming disallowance u/s 36(1)(va) : Tax effect : Rs.1,71,273/-. 3. On facts and in circumstances of case, Ld.CIT(A) erred in law and on facts of case in confirming disallowance u/s 37(1) : Tax effect : Rs.89,135/-. 4. On facts and in circumstances of case, Ld.CIT(A) erred in law and on facts of case in confirming disallowance u/s 43B : Tax effect : Rs.7,47,293/-. Total tax effect: Rs.10,07,701/-. 4. Having regard to rival contentions and material placed on record, we find that CIT(A) has dismissed assessee s appeal in limini and has not decided case on merits. CIT(A) can not dismiss assessee s appeal for non- appearance of assessee as held by Hon ble Bombay High Court in case of CIT vs. Prem Kumar Arjundas Luthra (HUF) (2016) 240 Taxman 133. 4.1. In view of same, appeal is set aside to file of CIT(A) with direction to dispose of assessee s appeal on merits after giving assessee fair and reasonable opportunity of being heard. 5. In result, assessee s appeal is allowed for statistical purposes. Pronounced in open Court on 27 th September, 2019. Sd/- Sd/- (A. MOHAN ALANKAMONY) (P. MADHAVI DEVI) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 27 th September, 2019 *Gmv 2 ITA No.266/Hyd/2019 AY: 2015-16 M/s Buildmate Projects P Ltd., Hyd. Copy to:- 1) M/s Buildmate Projects India P Ltd., Survey no.60-62, NH 7, Gundlapochampally, Medchal Mandal, Hyderabad 500 014. 2) ITO, Ward 1(3), Hyderabad. 3) Pr.CIT-1, Hyderabad 4) ACIT, Range 1, Hyderabad 5) DR, ITAT, Hyderabad 6) Guard File CIT(A-1, Hyderabad 3 ITA No.266/Hyd/2019 AY: 2015-16 M/s Buildmate Projects P Ltd., Hyd. 1. Draft dictated on 19.9.19 2. Draft placed before author 25.9.19 3 Draft proposed & placed before second Member 4 Draft discussed/approved by second Member 5 Approved Draft comes to Sr.P.S./PS 6. Kept for pronouncement on 27.9.19 Order uploaded on: 7. File sent to Bench Clerk 8 Date on which file goes to Head Clerk 9 Date of Dispatch of order 4 Buildmate Projects P. Ltd. v. ITO, Ward 1(3), Hyderabad