Jiya Eco-Produsts Limited, Bhavangar V. The DCIT, Circle-1, Bhavanagar

ITA 1109/AHD/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 4681 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2015-2016
• Appeal Filed On: 02-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 40A(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH (BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI MAHAVIR PRASAD, JUDICIAL MEMBER) ITA. NO: 1109/AHD/2018 (ASSESSMENT YEAR: 2015-16) JIYA ECO-PRODUCTS LTD., G/6, RUTURAJ COMPLEX, OPP. A.V. SCHOOL GROUND, CRESCENT ROAD, BHAVNAGAR-364001 V/S THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE-1, BHAVNAGAR (APPELLANT) (RESPONDENT) PAN: AACCJ7441B APPELLANT BY : SHRI KALPESH SHAH, AR RESPONDENT BY : SHRI MUDIT NAGPAL, SR. D.R. ( )/ ORDER DATE OF HEARING : 18 -07-201 9 DATE OF PRONOUNCEMENT : 29 -07-2019 PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER OF THE LD. CIT(A)-6, AHMEDABAD DATED 09.02.2018 PERTAINING TO A.Y. 2015-16 AND FOLLOWING GROUNDS HAVE BEEN TAKEN: ITA NO. 1109 /AHD/2018 . A.Y. 2015-1 6 2 1. DISPOSING OFF THE APPEAL EX PARTE - WITHOUT GOIN G INTO THE FACTS OF THE CASE; THE APPLICABLE PROVISIONS OF LAW, AS INTERPRETED BY VAR IOUS COURTS AND TRIBUNAL BENCHES; WITHOUT GIVING PROPER OPPORTUNITY OF BEING HEARD; AND WITHOUT APPRECIATING THAT THE NON-ATTENDANCE OF THE APPELLA NT WAS CLEARLY ATTRIBUTABLE TO THE REASONS MUCH BEYOND ITS CONTROL; 2. IN NOT REVERSING THE ACTION OF THE AO IN DISALLO WING THE LEGITIMATE CLAIM OF DEDUCTION OF RS.2,07,86,523/- UNDER SECTION 80JJA O F THE ACT, ALTHOUGH ALL THE TERMS AND CONDITIONS IN THIS REGARD WERE FULLY SATI SFIED; 3. IN NOT REVERSING THE ACTION OF THE AO IN DISALLO WING THE INTEREST EXPENDITURE OF RS.20,250/- BY INVOKING THE PROVISIONS OF SECTION 4 0(A)(IA) OF THE ACT (INADVERTENTLY MENTIONED AS SECTION 40(A)(I) IN THE ASSESSMENT ORDER); 4. IN NOT REVERSING THE ACTION OF THE AO IN DISALLOWING AN AGGREGATE SUM OF RS.9,03,272/- UNDER SECTION 40A(3) OF THE ACT. 2. AT THE OUTSET, LD. A.R. ARGUED THAT NO NOTICE WAS S ERVED TO THE ASSESSEE AND LD. CIT(A) HAS PASSED EX PARTE ORDER ON TECHNICAL GROUN D WITHOUT DISCUSSING MERIT OF THE CASE. 3. SINCE NEITHER NOTICE WAS RECEIVED BY THE APPELLANT NOR APPEAL WAS DECIDED BY THE LD. CIT(A) ON MERIT. IT WAS THE BOUNDEN DUTY OF A.O. TO DISPOSE OF THE GROUNDS ON MERITS IN TERMS OF SECTION 250(6) OF THE ACT NOTWITHSTANDING NON- APPEARANCE OF THE ASSESSEE. THEREFORE IN THE INTERE ST OF JUSTICE, WE ARE OF THE CONSIDERED VIEW, THIS IS A FIT CASE FOR SETTING ASI DE BACK TO THE FILE OF THE LD. CIT(A) WHO WILL DECIDE THE APPEAL ON MERIT AS PER P ROVISION OF LAW AFTER BEING GIVEN AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE . ITA NO. 1109 /AHD/2018 . A.Y. 2015-1 6 3 4. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 29- 07- 2019 SD/- SD/- (PRADIP KUMAR KEDIA) (MAHAVIR PRASAD) ACCOUNTANT MEMBER TRUE COPY JUDICIAL MEMBER AHMEDABAD: DATED 29/07/2019 RAJESH COPY OF THE ORDER FORWARDED TO: - 1. THE APPELLANT. 2. THE RESPONDENT. 3. THE CIT (APPEALS) 4. THE CIT CONCERNED. 5. THE DR., ITAT, AHMEDABAD. 6. GUARD FILE. BY ORDER DEPUTY/ASSTT.REGISTRAR ITAT,AHME DABAD