Aarya Industrial Products Pvt. Ltd., , Kolkata V. DCIT, Circle - 10(1), Kolkata , Kolkata

ITA 1105/KOL/2018

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 5223 (ITAT-KOLKATA)
• Duration Of Justice: 2 year(s) 4 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-10-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 22-05-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA JCIT LD
• Assessee Lawyers: MANISH TIWARI F C A LD
• Keywords: Principle of natural justice; Set aside
• Section: 143(3); 250

Judgement Text

1 ITA NO. 1105/KOL/ 2018 AY 2013 - 14 IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: KOLKATA BEFORE: SHRI P.M. JAGTAP, VICE - PRESIDENT (KZ) AND SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A NO . 1105 /KOL/20 18 A.Y: 20 1 3 - 14 M/S. AARYA INDUSTRIAL PRODUCTS VS. D.C.I.T., CIR - 10(1), KOLKATA PVT. LTD. PAN: AA DCA 6403F [APPELLANT] [RESPONDENT] FOR THE APPELLANT : SHRI MANISH TIWARI, FCA, LD.AR FOR THE RESPONDENT : SHRI JAYANTA KHANRA, JCIT, LD.SR.DR DATE OF HEARING (VIRTUAL) : 0 6 - 10 - 2020 DATE OF PRONOUNCEMENT : 0 6 - 10 - 2020 ORDER SHRI P.M. JAGTAP, V.P: THIS APPEAL PREFERR ED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT (APPEALS) - 4 , KOLKATA DATED 06 - 03 - 2018 PASSED EX PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON - PROSECUTION. 2. THE ASSESSEE I N THE PRESENT CASE IS A COMPANY , WHICH IS ENGAGED IN THE BUSINESS OF TRADING OF CHEMICALS AND MINERALS . THE RETURN OF INCOME (R.O.I) FOR THE A.Y UNDER CONSIDERATION WAS FILED BY IT ON 30 - 09 - 2013 DECLARING TOTAL INCOME OF RS. 4,92, 83,470/ - . IN T HE ASSESSMENT COMPLETED U/S. 143(3) OF THE INCOME - TAX ACT, 1961 ( HEREINAFTER, REFERRED TO AS THE ACT ) BY AN ORDER DT 17 - 0 3 - 2016, T HE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE AO AT RS.1 0,52,69,000/ - AFTER MAKING THE FOLLOWING ADDITIONS: - I) INTEREST INCOME ON TDR AND RENTAL INCOME: RS. 14,61,697/ - II) DISALLOWANCE OF ASSESSEE S CLAIM FOR EXEMPTION IN AGRICULTURAL INCOME : RS.2,19, 40,0 00/ - III) DISALLOWANCE ON VARIOUS EXPENSES: RS.20,00,000/ - IV) DISALLOWANCE FOR SHORTAGE OF GOODS: RS.9,77,9 61 / - 2 ITA NO. 1105/KOL/ 2018 AY 2013 - 14 V) DISALLOWANCE U/S. 14A: RS.2, 99,723/ - , AND VI) U N EXPLAINED CASH CREDIT U/S.68: RS.2,94,00,000/ - 3. AGAINST THE ORDER PASSED BY THE AO U/S. 143(3) , AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE THERE WAS NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESS EE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME , T HE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE FOR NON - PROSECUTION VIDE HIS APPELLATE ORDER DATED 06 - 03 - 2018 PASSED EX PARTE . AGGRIEVED BY THE ORDER OF THE LD. C IT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THIS TRIBUNAL. 4 . WE HAVE HEARD THE ARGUMENTS OF BOTH THE PARTIES AND ALSO PERUSED THE RELEVANT RECORDS . I N SUPPORT OF THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING THE IMPUGN ED ORDER PASSED OF THE LD. CIT(A) EX PARTE DISMISSING THE APPEAL OF THE ASSESSEE FOR NON - PROSECUTION , T HE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT APPLICATIONS WERE FILED BY THE ASSESSEE IN WRITING BEFORE THE LD. CIT(A) SEEKING ADJOURNMENT OF THE HEARING INITIALLY FIXED BY THE LD. CIT(A) ON FOUR (4) DIFFERENT OCCASIONS. HE HAS SUBMITTED THAT THE ASSESSEE HOWEVER, COULD NOT COMPLY WITH THE NOTICE STATED TO BE ISSUED BY THE LD. CIT(A) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING FINALLY ON 0 8 - 02 - 2018, AS THE SAID NOTICE WAS NOT RECEIVED BY THE ASSESSEE . HE HAS CONTENDED THAT THE LD. CIT(A), HOWEVER, DID NOT GIVE ANY FURTHER OPPORTUNITY TO THE ASSESSEE AN D PROCEEDED TO DISMISS THE APPEAL OF THE ASESSEE FOR NON - PROSECUTION VIDE HIS IMPUGNED ORDE R PASSED EX PARTE, WHICH IS A CLEAR VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. THE LD. DR HAS NOT BEEN ABLE TO DISP UTE THIS POSITION, WHICH IS CLEARLY EVIDENT FROM THE IMPUGNED ORDER PASSED BY THE LD. CIT(A). MOREOVER, A S PER SPECIFIC PROVISIONS CONTAIN ED IN SUB - SECTION (6) OF SECTION 250 OF THE ACT, THE LD. CIT(A) WAS REQUIRED TO DISPOSE OFF THE APPEAL OF THE ASSESSEE BY AN ORDER IN WRITING STATING THEREIN POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR THE DECISION. THE IMPUGNED ORDER OF THE LD. CIT(A) DOES NOT COMPLY WITH TH ESE REQUIREMENT S AND THIS POSITION CLEARING MANIFEST FROM THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX PARTE IS NOT DISPUTED EVEN BY THE LD. DR. HE, HOWEVER, HAS URGED THAT THE MATTER MAY BE SENT BACK TO THE LD. CIT(A) FOR DISPOSING OFF THE APPEAL OF THE ASSESSEE AFRESH ON MERITS AS PER THE PROVISIONS OF SUB - SECTION (6) OF SECTION 250 OF THE ACT. WE FIND MERIT IN THE CONTENTION OF THE LD.DR. ACCORDINGLY, THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX PA RTE IS SET ASIDE AND THE MATTER IS REMITTED BACK TO HIM FOR DISPOSING OFF THE APPEAL OF THE ASSESSEE AFRESH ON MERITS BY PASSING A WELL DISCUSSED AND WELL REASONED ORDER AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY 3 ITA NO. 1105/KOL/ 2018 AY 2013 - 14 OF BEING HEARD. THE AS SESSEE IS DIRECTED TO MAKE DUE COMPLIANCE BEFORE THE LD. CIT(A) AND TO EXTEND ALL POSSIBLE CO - OPERATION IN ORDER TO ENABLE THE LD. CIT(A) TO DISPOSE OFF THE APPEAL AFRESH ON MERITS . 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FO R STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 6 TH OCTOBER, 2020. SD/ - SD/ - A.T . VARKEY P.M. JAGTAP JUDICIAL MEMBER VICE PRESIDENT (KZ) DATED 0 6 - 10 - 2020 ** PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT/ASSESSEE: M/S. AARYA INDUSTRIAL PRODUCTS PVT. LTD 1 ST FL., SANTOSH APARTMENT, 9 HUNGER FORD STREET, KOLKATA - 17. 2 RESPONDENT/REVENUE: THE DCIT, CIR - 10, AAYKAR BHAWAN, P - 7 CHOWRINGHEE SQ., KOLKATA - 69. 3. C IT, 4. CIT(A), KOLKATA. 5. DR, KOLKATA BENCHES, KOLKATA **PP/SPS TRUE COPY BY BY ORDER ASSISTANT REGISTRAR ITAT KOLKATA