ESSZEE MANUFATURING PVT LTD.,MUMBAI V. ITO, NATIONAL E-ASSESSMENT CENTRE, DELHI

MA 18/MUM/2024

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Esszee Manufacturing Pvt. Ltd. filed a Miscellaneous Application against an ex-parte order of the Tribunal, which had been issued due to the absence of any representative from the company during the hearing. The company argued that it had ceased operations and was unaware of the hearing date due to the lack of staff and the director's infrequent checking of the company email. Upon discovering the ex-parte order, the director promptly contacted their Chartered Accountant, leading to the filing of the present application. The Tribunal, considering the circumstances and the absence of deliberate intention to miss the hearing, decided to recall the ex-parte order and reschedule the hearing.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 26556 (ITAT-MUMBAI)
• Duration Of Justice: 9 month(s) 7 day(s)
• Appeal Type: Miscellaneous Application
• Pronouncement Date: 01-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Next Hearing Date: 18-10-2024
• Assessment Year: 2018-2019
• Appeal Filed On: 25-01-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: UODAL RAJ SINGH
• Assessee Lawyers: MADHUR AGARWAL
• Keywords: Opportunity of being heard
• Section: 254(2)

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘E’ BENCH MUMBAI BEFORE: SHRI. AMIT SHUKLA, JUDICIAL MEMBER & SHRI. GAGAN GOYAL, ACCOUNTANT MEMBER MA No. 18/Mum/2024 (Arising out of ITA No. 1073/Mum/2023) (Assessment Year :2018-19) Esszee Manufacturing Pvt. Ltd. HD 117, We Work 247 Park, 13th Floor Vikhroli Corporate Park Hindustan C.Bus Stop Lal Bahadur Shastri Road Gandhi Nagar Vikhroli West Mumbai- 400 079 Vs. ITO, National E- Assessment Centre, Delhi PAN/GIR No. AACCE3219J (Appellant) .. (Respondent) Assessee by Shri. Madhur Agarwal /Shri Fenil Bhatt Revenue by Shri Uodal Raj Singh, Sr. DR Date of Hearing 18/10/2024 Date of Pronouncement 01/11/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid Miscellaneous Application has been filed by the assessee against order dated 10/07/2023 which was passed exparte by the Tribunal. MA No. 18/Mum/2024 Esszee Manufacturing Pvt. Ltd; A.Y. 2018-19 2 2. In the Miscellaneous Application, the applicant assessee has stated as under:- Application under Rule 24 of ITAT Rules r.ws. 254(2) of the Income-tax Act, 1961 1 The applicant above named begs to state and submit as under 2 The aforesaid appeal was disposed off ex-parte, by the Hon'ble Tribunal vide order dated 10.07.2023 since no one was present on the date of hearing. By the present petition, the applicant beseeches the indulgence of this Hon'ble Tribunal to recall the aforesaid order for the following reason. A copy of the aforesaid order is enclosed and marked as Annexure-A. 3. It is humbly submitted that the captioned appeal was filed against the order passed by CIT(A)- NFAC dated 04.02.2023 It is submitted that on receipt of the said order, the papers were forwarded to Chartered Accountant for filing appeal before the Han ble Tribunal which was filed on 03.04.2023 It is submitted that assessee company has stopped its operations and hence does not have any employees or administrative staff at the address mentioned in Form No. 36. It is submitted that, in Form No. 36, the Chartered Accountant has mentioned the registered office of the company. It is submitted that the assessee company was not aware of the date of hearing of appeal since no person was present to collect the notices intimating the date of hearing. The new communication address is given above. 5 It is submitted that Mr Manish Tiwari, director of the assessee company, was not regularly checking the email id of the assessee company due to non operation of business and heavy losses in business. It is submitted that Mr Manish Tiwari accessed the email id of the assessee company in the month of August 2023 and came across the emails received from the Hon'ble Tribunal intimating the date of hearing It is submitted that Mr. Manish Tiwari approached his Chartered Accountant and requested him to MA No. 18/Mum/2024 Esszee Manufacturing Pvt. Ltd; A.Y. 2018-19 3 check the status of appeal. On inquiry, it was found that the appeal had been disposed off, ex parte, by the Hon'ble Tribunal vide order dated 10.07.2023 since no one was present on the date of hearing. It is submitted that an affidavit of the applicant in support of the statements made in this application is enclosed and marked as Annexure B 6. It is submitted that non-appearance on the day of hearing was not due to any deliberate or malafide intention but for reasons stated herein above. It is submitted that the Hon'ble Tribunal may be pleased to recall the said order and the appeal may be restored for adjudication afresh so that the applicant is able to represent its appeal before the Hon'ble Tribunal. It is submitted that by acceding to this humble request, the revenue is not going to be prejudiced in any manner as the appeal would be decided after providing an opportunity of being heard to the applicant whereas the applicant will suffer grave harm injury and financial loss in case of its non-acceptance 7 The applicant, therefore, humbly prays that (i) the order passed by the Hon'ble Tribunal in ITA No. 1073/Mum/2023 dated 10.07.2023 may kindly be recalled under Rule 24 of ITAT Rules, the appeal may be restored to its file; and it may be decided after providing an opportunity of being heard to the applicant; and/or (ii) this Hon'ble Tribunal may be pleased to pass any other order or directions as may be deemed fit and proper in the facts and circumstances of the case And for this act of kindness, the applicant shall, as in duty bound, ever pray. 3. Since, it is an exparte order and there was reasonable and bonafide reasons in not appearing before the Tribunal on the due date, therefore, the Tribunal order dated 10/07/2023 is recalled and is fixed for fresh hearing on 27/11/2024. MA No. 18/Mum/2024 Esszee Manufacturing Pvt. Ltd; A.Y. 2018-19 4 4. Parties informed in the open Court. 5. In the result, Miscellaneous Application is allowed. Order pronounced on 1st November, 2024. Sd/- (GAGAN GOYAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 01/11/2024 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "