Hello Telecom Pvt Ltd, Chennai V. ITO, Corp Ward-2(3), Chennai

ITA 1144/CHNY/2019

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 7965 (ITAT-CHENNAI)
• Duration Of Justice: 2 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-07-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 22-04-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANATH KUMAR RAHA
• Keywords: Set aside
• Section: 2

Judgement Text

, / , IN THE INCOME TAX APPELLATE TRIBUNAL A SMC BENCH, CHENNAI ... , BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER ./ ITA NO.1144/CHNY/2019 ' #$' / ASSESSMENT YEAR : 2014-15 M/S HELLO TELECOM PVT. LTD., NEW NO.62, VEERABADRAN STREET, NUNGAMBAKKAM, CHENNAI - 600 034. PAN : AABCH 9913 M V. THE INCOME TAX OFFICER, CORPORATE WARD 2(3), CHENNAI - 600 034. (&'/ APPELLANT) (()&'/ RESPONDENT) &' * + / APPELLANT BY : SHRI I. DINESH, ADVOCATE ()&' * + / RESPONDENT BY : SHRI SANATH KUMAR RAHA, JCIT , # * -. / DATE OF HEARING :02.07.2019 /0$ * -. / DATE OF PRONOUNCEMENT : 05.07.2019 / O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST T HE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -5, CHENNA I, DATED 21.02.2019 AND PERTAINS TO ASSESSMENT YEAR 2014-15. 2. SHRI I. DINESH, THE LD.COUNSEL FOR THE ASSESSEE, SUBMITTED THAT THE ASSESSEE FILED APPEAL BEFORE THE CIT(APPEA LS). HOWEVER, THE CIT(APPEALS) DISPOSED OF THE APPEAL FOR NON-PRO SECUTION 2 I.T.A. NO.1144/CHNY/19 WITHOUT DISCUSSING ANYTHING ON MERIT. THEREFORE, T HE LD.COUNSEL SUBMITTED THAT AN OPPORTUNITY MAY BE GIVEN TO THE A SSESSEE TO PLACE THE FACTS BEFORE THE CIT(APPEALS). 3. ON THE CONTRARY, SHRI SANATH KUMAR RAHA, THE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT THE ASS ESSEE FILED APPEAL BEFORE THE CIT(APPEALS). THE APPEAL WAS FIXE D FOR HEARING ON SEVERAL OCCASIONS AND IN FACT, FIVE NOTICES OF H EARING WERE ISSUED TO THE ASSESSEE. THE ASSESSEE DID NOT RESPOND EVEN FOR SINGLE NOTICE OF HEARING. THEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEALS) FOUND THAT THE LAW AIDS THOSE WHO ARE VIGILANT AND NOT THOSE WHO SLEEP UPON THEIR RIGHTS. ACCORDINGLY THE APPEAL WAS DISMISSED. 4. HAVING HEARD THE LD.COUNSEL FOR THE ASSESSEE AND THE LD. D.R., THIS TRIBUNAL IS OF THE CONSIDERED OPINION TH AT THAT THE CIT(APPEALS) HAS NO AUTHORITY OR JURISDICTION TO DI SMISS THE APPEAL FOR NON-PROSECUTION. UNDER THE SCHEME OF INCOME-TA X ACT, THE CIT(APPEALS) IS THE FIRST APPELLATE AUTHORITY. HE HAS ALL THE POWERS OF THE ASSESSING OFFICER. IN OTHER WORDS, THE CIT( APPEALS) HAS COTERMINOUS POWER AS THAT OF THE ASSESSING OFFICER. THE CIT(APPEALS) IS EMPOWERED TO ENHANCE THE ASSESSMENT DURING THE 3 I.T.A. NO.1144/CHNY/19 COURSE OF APPELLATE PROCEEDING. BY DISMISSING THE APPEAL FOR NON- PROSECUTION, THE CIT(APPEALS) DISOWNS HIS RESPONSIB ILITY OF INCREASING THE ASSESSMENT IN CASE IT IS NEEDED. TH EREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT THE CIT( APPEALS) IS BOUND TO DISPOSE THE APPEAL ON MERIT ON THE BASIS OF THE MATERIAL AVAILABLE ON RECORD IRRESPECTIVE OF THE FACT WHETHER THE ASSE SSEE APPEARED BEFORE HIM OR NOT. MANY TIMES, THIS TRIBUNAL HAS P OINTED OUT THAT THE CIT(APPEALS) HAS NO POWER TO DISMISS THE APPEAL FOR NON- PROSECUTION. INSPITE OF REPEATED ORDERS OF THIS CO URT, SOME OF THE CIT(APPEALS) CONTINUE TO DISMISS THE APPEAL FOR NON -PROSECUTION. THIS TRIBUNAL IS CONFIDENT THAT THIS WOULD NOT HAPP EN IN FUTURE. IN VIEW OF THE ABOVE, THIS TRIBUNAL IS UNABLE TO UPHOL D THE ORDER OF THE CIT(APPEALS) AND ACCORDINGLY THE ORDER OF THE CIT(A PPEALS) IS SET ASIDE AND THE ENTIRE ISSUE RAISED BY THE ASSESSEE I S REMITTED BACK TO THE FILE OF THE CIT(APPEALS). THE CIT(APPEALS) SHALL GIVE SUFFICIENT OPPORTUNITY TO THE ASSESSEE AND THEREAFT ER DECIDE THE ISSUE ON MERIT IN ACCORDANCE WITH LAW. IT IS MADE CLEAR THAT IF THE ASSESSEE HAS NOT RESPONDED TO THE NOTICE OF HEARING , IT IS OPEN TO THE CIT(APPEALS) TO DISPOSE THE APPEAL ON MERIT AFT ER CALLING FOR THE RECORDS FROM THE ASSESSING OFFICER. 4 I.T.A. NO.1144/CHNY/19 5. WITH THE ABOVE OBSERVATION, THE APPEAL FILED BY THE ASSESSEE STANDS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 5 TH JULY, 2019 AT CHENNAI. SD/- ( ... ) (N.R.S. GANESAN) /JUDICIAL MEMBER /CHENNAI, 2 /DATED, THE 5 TH JULY, 2019 KRI. * (-34 54$- /COPY TO: 1. &' /APPELLANT 2. ()&' /RESPONDENT 3. , 6- () /CIT(A)-5, CHENNAI-34 4. PRINCIPAL CIT-2, CHENNAI 5. 4#7 (- /DR 6. 8' 9 /GF.