Late Katyayanee More through L/H Aneesh K.More, Pune V. Income-tax Officer, Ward - 3(4), Pune

ITA 1010/PUN/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 0366 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 13-03-2019
• Assessment Year: 2013-2014
• Appeal Filed On: 07-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M K VERMA
• Assessee Lawyers: AMUD VAZE
• Keywords: Principle of natural justice; TDS
• Section: 143(3); 40(a)(ia); 250; 6

Judgement Text

] IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH SMC, PUNE BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO.1010/PUN/2018 / ASSESSMENT YEAR : 2013-14 LATE KATYAYANEE KALIDAS MORE THROUGH LEGAL HEIR SHRI ANEESH K. MORE, 54/2, YASHASHRI GARDEN BUILDING, NEAR KARVENAGAR BUS STAND, KARVENAGAR, PUNE 411052. PAN : AGEPM9778R. . / APPELLANT V/S THE INCOME TAX OFFICER, WARD-3(4), PUNE. . / RESPONDENT ASSESSEE BY : SHRI AMUD VAZE REVENUE BY : SHRI M.K. VERMA. / ORDER PER ANIL CHATURVEDI, AM : 1. THIS APPEAL FILED BY THE ASSESSEE IS EMANATING OUT OF THE O RDER OF COMMISSIONER OF INCOME TAX (A) 3, PUNE DATED 13.04.2018 FOR THE ASSESSMENT YEAR 2013-14. 2. THE RELEVANT FACTS AS CULLED OUT FROM THE MATERIAL ON R ECORD ARE AS UNDER :- ASSESSEE IS AN INDIVIDUAL AND IS STATED TO BE ENGAGED IN THE BUSINESS OF SUPPLY OF CHEMICALS AND TRANSPORT PROVIDER UN DER THE NAME / DATE OF HEARING : 13.03.2019 / DATE OF PRONOUNCEMENT: 29.03.2019 2 ITA NO.1010/PUN/2018 AND STYLE OF K H ENTERPRISES. ASSESSEE FILED HER RETURN OF INCOME FOR A.Y 2013-04 ON 30.09.2013 DECLARING TOTAL INCOME OF RS.6,37,3 10/-. THE CASE WAS SELECTED FOR SCRUTINY AND THEREAFTER THE A SSESSMENT WAS FRAMED U/S 143(3) OF THE ACT VIDE ORDER DATED 23.03.2016 DETERMINING THE TOTAL INCOME AT RS.10,45,070/-. AGGRIEVED BY THE ORD ER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE EX -PARTE ORDER DATED 13.04.2018 (IN APPEAL NO.CIT(A), PUNE-3/11050/2016-17 ) DISMISSED THE APPEAL OF ASSESSEE. AGGRIEVED BY THE ORDE R OF LD.CIT(A) ASSESSEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FO LLOWING GROUNDS : 1. I N THE FACTS AND C I RCUMSTANCES OF THE CASE , THE APPEL LA TE O R DE R PASSED U /S 250 ( 6 ) BY CIT(A) 3 - P UNE IS BAD IN LAW A S THE NOTICE U/S 250(1) WAS ISSUED IN THE NAME OF THE DECEASED ASSESSEE . 2. WITHOUT PREJUDICE TO GROUND NO 1 ABOVE , THE COMMIS SI ONER OF I NCOME TAX (A) 3 , HAS E R RED IN L A W AS WE L L AS I N FA CT I N D I SMISSING THE APPEA L ONL Y O N T HE G ROUND OF D E LAY IN FI LING TH E APP E AL B Y THE ASSESSEE . TH E AS S ESSEE M A IN TA IN S THAT T HE APPEA L WA S FIL ED WITHIN TIM E . THERE WAS NO DELAY IN FILING THE APPEAL . 3. W I THOUT PREJUDICE T O GROUND NO 1 AND 2 ABOVE , THE AS S ESSEE PRAYS TO CONDONE TH E D ELAY O F 3 DAYS , IF ANY , IN FILING THE APPEAL BEFORE CIT(A) 3 PUNE . THE CIT(A) 3 BE DIRECTED TO DECIDE THE I S S UE O N M E RIT AFTE R CO ND O N I N G T HE DE L AY IN FI L IN G T H E A PP EA L B EFO R E H I M. 4. WITHOUT PREJUDICE TO GROUND NO 1 TO 3 ABOVE , THE ASS E SSING OFFICER HAS ERRED IN LAW AS WE LL AS I N FACT , THE DISALLOWANCE OF INTEREST U/S 40 ( A )( IA ) WH E N T HE PROVISIONS OF S EC 1 9 4A ARE NOT APPLICABLE TO THE PAYEES , BEING B ANKS . 3. ALL THE GROUNDS BEING INTER-CONNECTED ARE CONSIDERED TOGETHE R. 4. DURING THE COURSE OF ASSESSMENT PROCEEDINGS AO ON PERUSING THE PROFIT AND LOSS ACCOUNT NOTICED THAT ASSESSEE HAD DEBI TED INTEREST AGGREGATING TO RS.4,07,754/- PAID TO SUNDRAM FINANCE LT D., BUT HAD NOT DEDUCTED TDS WHILE MAKING THE INTEREST PAYMENTS. AO WAS 3 ITA NO.1010/PUN/2018 THEREFORE OF THE VIEW THAT PROVISIONS OF SEC.40(A)(IA) OF THE AC T ARE APPLICABLE AND HE ACCORDINGLY DISALLOWED THE INTEREST OF RS .4,07,754/- ON ACCOUNT OF NON-DEDUCTION OF TDS. AGGRIEVED BY THE OR DER OF AO, ASSESSEE CARRIED THE MATTER BEFORE LD.CIT(A), WHO VIDE EX- PARTE ORDER DISMISSED THE APPEAL OF ASSESSEE. AGGRIEVED BY THE ORDER OF LD.CIT(A), ASSESSEE IS NOW IN APPEAL BEFORE US. 5. BEFORE US, LD.A.R. SUBMITTED THAT LD.CIT(A) HAS PASSED A N EX- PARTE ORDER WITHOUT DECIDING THE ISSUE ON MERITS. LD.A.R. FURTHER UNDERTOOK THAT IF ONE MORE OPPORTUNITY BE GRANTED TO ASSESSEE TO EXPLAIN HIS CASE HE WILL COOPERATE AND SHALL FURNISH THE REQU IRED DETAILS AS CALLED FOR BY THE AUTHORITIES. LD.D.R. ON THE OTHER HAN D SUPPORTED THE ORDER OF AO AND LD.CIT(A) AND OBJECTED TO THE PRAYE R FOR 2 ND INNINGS MADE BY LD.A.R. 6. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. THE ISSUE IN THE PRESENT GROUND IS WITH RESPECT TO DISALLOWANCE OF INTEREST U/S 40(A)(IA) OF THE ACT. THE DISALLOWANCE WAS MAD E ON ACCOUNT OF NON-DEDUCTION OF TDS ON INTEREST PAYMENT. T HE PERUSAL OF ORDER OF LD.CIT(A) REVEALS THAT LD.CIT(A) HAS PASSED AN EX -PARTE ORDER WITHOUT DECIDING THE ISSUE ON MERITS. I N VIEW OF THE WELL SETTLED PRINCIPLE OF NATURAL JUSTICE THAT SUFFICIENT OPPORTUNITY OF HEA RING SHOULD BE AFFORDED TO THE PARTIES AND NO PARTY SHOULD BE CONDE MNED UNHEARD, WE ARE OF THE VIEW THAT ONE MORE OPPORTUNITY BE GRANTE D TO THE LEGAL HEIR OF ASSESSEE TO PRESENT HIS CASE. WE THEREFORE RES TORE THE MATTER BACK TO THE FILE OF LD.CIT(A) TO DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH LAW. NEEDLESS TO STATE THAT LD.CIT(A) SHALL GRANT ADEQ UATE OPPORTUNITY OF HEARING TO BOTH THE PARTIES. LEGAL HEIR OF ASSESSEE IS ALSO 4 ITA NO.1010/PUN/2018 DIRECTED TO PROMPTLY FURNISH ALL THE DETAILS CALLED FOR BY TH E LOWER AUTHORITIES. IN VIEW OF OUR DECISION TO RESTORE THE ISSUE TO LD.CIT(A), WE ARE NOT ADJUDICATING ON MERITS THE GROUNDS OF THE APPEA L RAISED BY THE LEGAL HEIR OF ASSESSEE. THUS, THE GROUNDS OF ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 29 TH DAY OF MARCH, 2019. SD/- SD/ - ( SUSHMA CHOWLA ) ( ANIL CHATURVEDI ) / JUDICIAL MEMBER ' / ACCOUNTANT MEMBER PUNE; DATED : 29 TH MARCH, 2019. YAMINI #$%&'(' % / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. 4. 5 6. CIT(A)-3, PUNE. PR. CIT-2, PUNE. '#$ %%&',) &', *+ / DR, ITAT, SMC PUNE; $-.// GUARD FILE. / BY ORDER // TRUE COPY // 012%3&4 / SR. PRIVATE SECRETARY ) &' , / ITAT, PUNE.