Imperial Readymade Garments Factory India Private Limited, CHENNAI V. ITO Corporate Ward 2(1), CHENNAI

ITA 1016/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 5027 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2010-2011
• Appeal Filed On: 26-03-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: R KUMAR
• Keywords: Opportunity of being heard; Principle of natural justice; TDS
• Section: 143(3)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , C BENCH, CHENNAI , . , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER ./ I.T.A.NO.1016/CHNY/2018 / ASSESSMENT YEAR: 2010-11) M/S. IMPERIAL READYMADE GARMENTS FACTORY INDIA PVT. LTD., K-60, SIPCOT APPAREL PARK, IRUNGATTUKOTTAI, SRIPERUMPUDUR, CHENNAI 602 107. VS THE INCOME TAX OFFICER, CORPORATE WARD 2(1), CHENNAI. PAN: AABCI4044A ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : SHRI R.KUMAR, ADVOCATE / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL. CIT /DATE OF HEARING : 27.03.2019 /DATE OF PRONOUNCEMENT : 30.05.2019 / O R D E R PER A. MOHAN ALANKAMONY, AM:- THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS)-13, CHENNAI, DATED 21.11.2017 IN ITA NO.07/CIT(A)-13/AY 2010-11 FOR THE ASSESSMENT YEAR 2010-11 PASSED U/S.250(6) R.W.S 143(3) OF THE ACT. 2 ITA NO.1016/CHNY/2018 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS IN ITS APPEAL:- 1) THE LEARNED CIT(A) HAS ERRED IN NOT GIVING AN ADDITIONAL OPPORTUNITY OF BEING HEARD IN PERSON EVEN AFTER THE AR OF THE APPELLANT HAS INFORMED HIS INABILITY DUE TO SICKNESS THUS DENYING THE NATURAL JUSTICE. 2) THE LEARNED CIT(A) FAILED TO NOTE THAT THE ASSESSEE HAS SUBMITTED ALL THE DETAILS OF TDS ACKNOWLEDGEMENTS AND COPIES OF VOUCHERS WITH APPEAL PAPERS FILED BEFORE HIM. 3) THE CIT APPEALS HAS POSTED ONLY ONE HEARING AND THE AR OF THE APPELLANT HAD SOUGHT AN ADJOURNMENT FOR 1 WEEK AND ULTIMATELY, HE FELL SICK AND WAS NOT ABLE TO ATTEND THE ADJOURNED HEARING. THE CIT (A) HAS PASSED THE ORDER ON THE DATE OF THE HEARING. 4) THE APPELLANT HAS NOT BEEN PRESENTED FOR THE HEARING BEFORE THE CIT CA) AND HAS NOT FILED ANY WRITTEN SUBMISSIONS OTHER THAN THE FACTS OF THE CASE AND GROUNDS OF APPEAL WHICH WAS FILED TOGETHER WITH THE APPEAL PAPERS. 5) FURTHER THE AUTHORISED REPRESENTATIVE HAS BEEN SICK ON 21/11/2017 WHICH HAS LEAD SLOWLY TO HIS HOSPITALIZATION IN DECEMBER 2017 THE MEDICAL PRESCRIPTIONS AND HOSPITALIZATION RECORDS HAS BEEN FURNISHED HEREWITH FOR YOUR CONSIDERATION. FOR THESE AND OTHER GROUNDS THAT MAY BE ADDUCED AT THE TIME OF HEARING, IT IS PRAYED THAT THE HONOURABLE ITAT MAY BE PLEASED TO DELETE THE ORDER OF CIT APPEALS AND THE ASSESSING OFFICER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS A PRIVATE LIMITED COMPANY, FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2010-11 ON 15.10.2010 DECLARING LOSS OF RS.2,54,72,811/-. THE CASE WAS SELECTED FOR SCRUTINY AND NOTICE U/S.143(2) OF THE ACT WAS ISSUED 3 ITA NO.1016/CHNY/2018 ON 25.08.2011. FINALLY ASSESSMENT ORDER WAS PASSED U/S.143(3) OF THE ACT ON 07.03.2013 WHEREIN THE LD.AO MADE SEVERAL ADDITIONS. 4. AT THE OUTSET, THE LD.AR SUBMITTED BEFORE US THAT THE LD.CIT(A) HAS PASSED AN EXPARTE ORDER WITHOUT AFFORDING THE ASSESSEE PROPER OPPORTUNITY OF BEING HEARD. THE LD.AR FURTHER SUBMITTED THAT HE HAD SOUGHT ADJOURNMENT DUE TO HIS SICKNESS, HOWEVER THE LD.CIT(A) PROCEEDED WITH THE APPEAL EXPARTE. THE LD.AR FURTHER SUBMITTED THAT EVEN BEFORE THE LD.AO THE ASSESSEE WAS NOT GIVEN PROPER OPPORTUNITY OF BEING HEARD, HE THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF LD.AO FOR FRESH HEARING AS THE ASSESSEE HAS A GOOD CASE TO SUCCEED. THE LD.DR ON THE OTHER HAND VEHEMENTLY ARGUED AGAINST THE SUBMISSION OF THE LD.AR AND REQUESTED FOR CONFIRMING THE ORDERS OF THE LD.REVENUE AUTHORITIES. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. WE DO NOT FIND MUCH STRENGTH IN THE SUBMISSION OF THE LD.AR. HOWEVER, IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD.AO FOR FRESH HEARING. WE ALSO CAUTION THE ASSESSEE TO COOPERATE BEFORE THE LD.REVENUE AUTHORITIES PROMPTLY IN THEIR PROCEEDINGS, FAILING WHICH THE LD.REVENUE 4 ITA NO.1016/CHNY/2018 AUTHORITIES SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERIT. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREIN ABOVE. ORDER PRONOUNCED ON THE 30 TH MAY, 2019 AT CHENNAI. SD/- SD/- /CHENNAI, /DATED 30 TH MAY, 2019 RSR /COPY TO: 1. /APPELLANT 2. /RESPONDENT 3. ( )/CIT(A) 4. /CIT 5. /DR 6. /GF ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( . ) (A. MOHAN ALANKAMONY) /ACCOUNTANT MEMBER