M/s. ABC Consultants Pvt. ltd., Kolkata V. ACIT, Range-3, Kolkata, Kolkata

ITA 1108/KOL/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1093 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2006-2007
• Appeal Filed On: 18-05-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: D S DAMLE
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH A, KOLKATA [BEFORE SHRI P.M. JAGTAP, AM AND SHRI S.S. VISWANETHRA RAVI, JM] I.T.A. NO. 1108/KOL/2017 ASSESSMENT YEAR: 2006-07 M/S. ABC CONSULTANTS PVT. LTD..............................APPELLANT C/O. G.P. AGRAWAL & ASSOCIATES, 7A, KIRAN SHANKAR ROY ROAD, 2 ND FLOOR, KOLKATA - 700001 [PAN : AAECA0105F] A.C.I.T., CIR 3(1) KOLKATA......................RESPONDENT AAYAKAR BHAWAN, 4 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA - 69 APPEARANCES BY: SHRI D.S. DAMLE, FCA APPEARING ON BEHALF OF THE ASSESSEE. SHRI SALLONG YADEN, ADDL. CIT APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : NOVEMBER 07, 2017 DATE OF PRONOUNCING THE ORDER : NOVEMBER 08, 2017 ORDER PER P.M. JAGTAP, AM THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT (APPEALS) 29.03.2017 PASSED EX-PARTE DISMISSING THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT IS A COMPANY WHICH IS ENGAGED IN THE BUSINESS OF RENDERING MANAGEMENT CONSULTANCY & RECRUITMENT SERVICES. THE RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 29.11.2006 DECLARING A TOTAL INCOME OF RS. 8,82,90,943/-. IN THE ASSESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 26.12.2008, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE A.O. AT RS. 9,78,60,471/- AFTER MAKING THE FOLLOWING ADDITIONS: 2 I.T.A. NO. 1108/KOL/2017 ASSESSMENT YEAR: 2006-07 M/S. ABC CONSULTANTS PVT. LTD. 1) DISALLOWANCE OF TRAVELLING EXPENSES OF RS. 14,13,189/- 2) DISALLOWANCE OF BUSINESS PROMOTION EXPENSES OF RS. 2,56,393/- 3) UNDISCLOSED RECEIPTS OF RS. 78,99,946/- 3. AGAINST THE ORDER PASSED BY THE A.O. UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT (A). ACCORDING TO THE LD. CIT (A), THERE WAS HOWEVER NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME. HE, THEREFORE, DISMISSED THE APPEAL FILED BY THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 29.03.2017 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT (A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. AS POINTED OUT BY THE LEARNED COUNSEL FOR THE ASSESSEE FROM THE RELEVANT PORTION OF THE IMPUGNED ORDER OF THE LD. CIT (A), ADJOURNMENTS WERE SOUGHT BY THE ASSESSEE ON ALL THE DATES ON WHICH THE APPEAL WAS FIXED FOR HEARING BY HIM INCLUDING THE LAST DATE I.E. 17.03.2017. IT APPEARS FROM THE IMPUGNED ORDER OF THE LD. CIT (A) THAT HE HOWEVER REFUSED TO GRANT THE ADJOURNMENT AS SOUGHT BY THE ASSESSEE ON THE FINAL DATE FIXED ON 17.03.2017 BY A LETTER FILED WELL IN ADVANCE ON 15.03.2017 WITHOUT GIVING ANY REASON WHATSOEVER TO JUSTIFY THE SAME. AS RIGHTLY CONTENDED BY THE LEARNED COUNSEL FOR THE ASSESSEE, IT IS THUS NOT A CASE WHERE THE ASSESSEE CAN BE SAID TO HAVE NOT COMPLIED WITH THE NOTICES ISSUED BY THE LD. CIT (A) AND THE IMPUGNED ORDER PASSED BY THE LD. CIT (A) DISMISSING THE APPEAL OF THE ASSESSEE EX-PARTE WITHOUT GIVING 3 I.T.A. NO. 1108/KOL/2017 ASSESSMENT YEAR: 2006-07 M/S. ABC CONSULTANTS PVT. LTD. PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE IS IN VIOLATION OF PRINCIPLE OF NATURAL JUSTICE. EVEN THE LEARNED DR HAS NOT BEEN ABLE TO DISPUTE THIS POSITION. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT (A) AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH AFTER GIVING ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDERTAKEN BY THE LEARNED COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPLIANCE BEFORE THE LD. CIT (A) AND SHALL EXTEND ALL THE POSSIBLE COOPERATION IN ORDER TO UNABLE THE LD. CIT (A) TO DISPOSE OF THE APPEAL EXPEDITIOUSLY. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 8 TH NOVEMBER, 2017. SD/- SD/- (S.S. VISWANETHRA RAVI) (P.M. JAGTAP) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 08/11/2017 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. M/S. ABC CONSULTANTS PVT. LTD., C/O. G.P. AGRAWAL & ASSOCIATES, 7A, KIRAN SHANKAR ROY ROAD, 2 ND FLOOR, KOLKATA 01. 2. ACIT, CIR 3(1), AAYAKAR BHAWAN, 4 TH FLOOR, P-7, CHOWRINGHEE SQUARE, KOLKATA 69. 3. THE CIT(A) 4. THE CIT 4 I.T.A. NO. 1108/KOL/2017 ASSESSMENT YEAR: 2006-07 M/S. ABC CONSULTANTS PVT. LTD. 5. DR TRUE COPY, BY ORDER, SR. P.S. / H.O.O. ITAT, KOLKATA