Munnangi Sea Foods Private Limited, Ongole, V. The Assistant Commissioner of Income Tax, Circle-1, Ongole,

ITA 106/VIZ/2021

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 9167 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 6 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-02-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2016-2017
• Appeal Filed On: 22-07-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside; Audi alteram partem
• Section: 263; 142(1); 115JB; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM BENCH, VISAKHAPATNAM (Through web-based video conferencing platform) BEFORE SHRI DUVVURU R L REDDY, HON’BLE JUDICIAL MEMBER & SHRI S. BALAKRISHNAN, HON'BLE ACCOUNTANT MEMBER I.T.A. No. 106/VIZ/2021 (Asst. Year : 2016-17) M/s. Munnangi Seafoods Pvt. Ltd., D.No.8-534, Sowmya Apartments, Pandaripuram, Ongole. Vs. Pr.CIT, Vijayawada. PAN No. AAHCM 5563 A (Appellant) (Respondent) Assessee by : Shri G.V.N. Hari, Advocate. Department by : Shri M.N.Murthy Naik, CIT-DR Date of hearing : 31/01/2022. Date of pronouncement : 09/02/2022. O R D E R PER S. BALAKRISHNAN, AM This appeal is filed by the assessee against the order of Principal Commissioner of Income Tax [for short, “PCIT”] in order No.ITBA/REV/M/REV5/2020-21/1031597706(1), dated 17/03/2021 for the A.Y.2016-17. 2. The assessee is engaged in the business of procurement, processing and export of shrimps and filed its return of income for the A.Y. 2016-17 on 16/10/2016 admitting deemed total income of Rs. 6,72,74,393/- u/sec. 115JB of the Act. The return was selected 2 ITA No.106/VIZ/2021 (M/s. Munnangi Seafoods Pvt. Ltd.) for scrutiny under CASS and notices u/sec. 143(2) & 142(1) were issued. The reply submitted by the assessee was considered by the AO and the assessment is accepted as the income returned by the assessee. 3. The ld.PCIT by invoking the provisions of section 263 passed an order after issuing show-cause notice u/sec. 263 on 08/02/2021. The assessee failed to respond to the show-cause notice and thereafter the ld.PCIT passed the order u/sec. 263 on 17/03/2021. 4. Ld.AR pleaded that one more opportunity may be given to the assessee for replying to the show-cause notice. 5. Ld.DR had no objection if the appeal is remitted back to the PCIT. 6. Audi alteram partem is one of the most famous and celebrated rule of natural justice. The principles of natural justice are those which have been laid out by the Courts as being the minimum protection of the rights of an individual against the arbitrary procedure that may be adopted by a judicial - quasi judicial and administrative authority while making an order affecting those rights. A careful perusal of the consistent judgments of the Apex Court would show that it has consistently been held that the rules of natural justice are not embodied rules and the said phrase is not and cannot be capable of precise definition. The underlying principle of natural justice evolved under the common law is to check arbitrary exercise of power by the State or its functionaries. Accordingly, the principle by its very nature implies the duty to act fairly i.e. fair play in action must be evident at every stage, Fair play demands that nobody shall be condemned unheard. 3 ITA No.106/VIZ/2021 (M/s. Munnangi Seafoods Pvt. Ltd.) 7. In the case of A.K. Kraipak v. Union of India [(1969) 2 SCC 262], it is observed that the aim of rules of natural justice is to secure justice or to put it negatively to prevent miscarriage of justice. In order to maintain principles of natural justice, we provide one more opportunity to the assessee to furnish his reply. Therefore, impugned order passed is set aside to the PCIT for fresh adjudication after providing a reasonable opportunity of hearing to the assessee. 8. In the result, appeal filed by the assessee is allowed for statistical purposes. Order Pronounced in open Court on this 09 th day of Feb., 2022. Sd/- sd/- (DUVVURU R L REDDY) (S. BALAKRISHNAN) Judicial Member Accountant Member Dated: 09 th Feb., 2022. vr/- Copy to: 1. The Assessee - M/s. Munnangi Seafoods Pvt. Ltd., D.No.8-534, Sowmya Apartments, Pandaripuram, Ongole. 2. The Revenue – PCIT, Vijayawada. 3. The D.R., Visakhapatnam. 4. Guard file. By order (VUKKEM RAMBABU) Sr. Private Secretary, ITAT, Visakhapatnam.