Commercial Body Builders, Kanpur V. Asstt. Commissioner of Income Tax, Kanpur

ITA 106/LKW/2014

• Counselvise Citation: 10623714 RSA 2014
• Duration Of Justice: 1 year(s) 6 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-09-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-09-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 25-02-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SWATI RATNA
• Keywords: Opportunity of being heard; Reasonable cause
• Section: 14A; 148; 2

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH B, LUCKNOW BEFORE SHRI SUNIL KUMAR YADAV, JUDICIAL MEMBER AND SHRI A.K. GARODIA, ACCOUNTANT MEMBER ITA NO. 106/LKW/2014 ASSESSMENT YEAR 2005-06 CIT (APPEALS)-II, KANPUR VS COMMERCIAL BODY BUILDERS 84/105, G.T. ROAD, KANPUR PAN AABFC 3001 A (RESPONDENT) (APPELLANT) S HRI RAKESH GARG, ADVOCATE APPELLANT BY SMT. SWATI RATNA, DR RESPONDENT BY 08/09/2015 DATE OF HEARING 16 /0 9 /2015 DATE OF PRONOUNCEMENT O R D E R PER SUNIL KUMAR YADAV, JM. THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST TH E ORDER OF THE LD. CIT(A)-II, KANPUR ON THE FOLLOWING GROUNDS:- 1 BECAUSE THE LEARNED CIT(APPEALS) HAS ERRED IN L AW AND ON FACTS IN NOT ALLOWING ADEQUATE OPPORTUNITY AND HAS ERRED IN DECIDING THE APPEAL EX-PARTE. 2. BECAUSE THE ASSESSEE APPELLANT BEING PREVENTED B Y SUFFICIENT AND REASONABLE CAUSE IN NOT MAKING COMPLIANCE, IF ANY, THE CIT (APPEALS) HAS FAILED TO APPRECIATE THE FACTS AND CIRCUMSTANCE S OF THE CASE AND PROCEEDED TO DECIDE THE APPEAL EX-PARTE. 3. BECAUSE THE LEARNED CIT(APPEALS) HAS ERRED IN L AW AND ON FACTS IN NOT DECIDING THE GROUND NO.L, WHEREBY THE APPELLANT OBJECTED INITIATION OF THE PROCEEDINGS U/S. 148 AND CONSEQUE NTLY COMPLETING ASSESSMENT U/S. 147/143(3) WITHOUT REJECTING OBJECT IONS RAISED BY THE APPELLANT. 4. BECAUSE, THE LEARNED CIT(APPEALS) HAS ERRED IN L AW AND ON FACTS IN CONFIRMING DISALLOWANCE OF RS.17,11,035/- BY APPLYI NG PROVISIONS 2 SECTION 14A READ WITH RULE 8D AS NO BORROWED MONEY WAS USED FOR THE PURCHASE OF SHARES AND NO INCOME WAS CLAIMED TO BE EXEMPT ON ACCOUNT OF DIVIDEND ON THESE SHARES. 5. ANY OTHER RELIEF (S) AS MAY BE DEEMED FIT IN THE CASE OF THE APPELLANT. 2. LD. COUNSEL FOR THE ASSESSEE INVITED OUR ATTENTI ON THAT THE CIT(A) HAS DECIDED THE APPEAL OF THE ASSESSEE WITHOUT AFFORDIN G PROPER OPPORTUNITY OF BEING HEARD. THEREFORE, ORDER OF THE CIT(A) DESERVE TO BE SET ASIDE AND MATTER BE RESTORED TO HIS FILE WITH DIRECTION TO AD JUDICATE THE GROUNDS RAISED BEFORE HIM AFRESH AFTER AFFORDING OPPORTUNITY OF BE ING HEARD TO THE ASSESSEE. 3. LD. DR PLACED RELIANCE UPON THE ORDER OF THE CIT (A). 4. HAVING CAREFULLY EXAMINED THE ORDER OF THE CIT(A ), WE FIND THAT THE CIT(A) HAS DISPOSED OF THE APPEAL FILED BY THE ASSE SSEE VIDE HIS ORDER DATED 14.11.2013 AND FROM A CAREFUL PERUSAL OF THE ORDER OF THE CIT(A), WE FIND THAT THE CIT(A) HAS ISSUED NOTICES FOR HEARING ON 21.05. 2012, 25.06.2012 AND 22.02.2013 BUT SINCE NO COMPLIANCE WAS MADE BY THE ASSESSEE, HE DISMISSED THE APPEAL SUMMARILY WITHOUT DEALING THE ISSUE ON M ERIT. HAVING CAREFULLY PERUSED THE ORDER OF THE CIT(A), WE FIND THAT THE C IT(A) HAS NOT GIVEN ANY SPECIFIC FINDING WITH REGARD TO SERVICE OF NOTICE O F HEARING. THEREFORE, IN THE ABSENCE OF CATEGORICAL FINDINGS OF SERVICE OF NOTIC E OF HEARING, WE ARE OF THE VIEW THAT THE CIT(A) HAS DISPOSED OF THE APPEAL EX- PARTE WITHOUT AFFORDING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. MOREOVER, IT IS ALSO NOTICED THAT THE CIT(A) HAS DISPOSED OF THE APPEAL SUMMARIL Y WITHOUT DEALING THE ISSUES ON MERIT. WE, THEREFORE, SET ASIDE THE ORDER OF THE CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH DIRECTION TO ADJUDICATE THE ISSUES RAISED BEFORE HIM ON MERIT BY PASSING THE REASONED ORDER AFTER AFFORD ING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ASSESSEE IS ALSO DIRECTED TO PLACE ALL RELEVANT EVIDENCE BEFORE THE CIT(A) ON ALL ISSUES RAISED ON MERIT. AC CORDINGLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3 5. IN THE RESULT, APPEALS OF THE ASSESSEE STAND ALL OWED FOR STATISTICAL PURPOSES. (ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE) SD/- SD/- (A.K. GARODIA ) (SUNIL KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 16/09/2015 AKS COPY OF THE ORDER FORWARDED TO : 1.THE APPELLANT 2.THE RESPONDENT. 3.CONCERNED CIT 4.THE CIT(A) 5.D.R., I.T.A.T., LUCKNOW ASSTT. REGISTRAR