Daniel Vyapaar Pvt. Ltd., Howrah V. D.C.I.T.,Circle-14(2), Kolkata

ITA 1157/KOL/2019

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 7304 (ITAT-KOLKATA)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-10-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 15-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANTA KHANRA
• Keywords: Unexplained expenditure; Opportunity of being heard; Rule 8D; Set aside
• Section: 69C; 143(3); 14A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA BENCH (SMC), KOLKATA [BEFORE SHRI P.M. JAGTAP, VICE PRESIDENT (KZ)] I.T.A. NO. 1157/KOL/2019 ASSESSMENT YEAR: 2013-14 DANIEL VYAPAAR PVT. LTD.....................................................................APPELLANT 251, G.T. ROAD, LILUAH, HOWRAH 711 204. [PAN: AACCD 7925 J] VS DCIT, CIRCLE 14(2) KOLKATA.......................................................................................RESPONDENT 110, SHANTI PALLY, 6 TH FLOOR, KOLKATA. APPEARANCES BY: NONE APPEARING ON BEHALF OF THE ASSESSEE. SHRI JAYANTA KHANRA, JCIT, SR. DR APPEARING ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : OCTOBER 23, 2019 DATE OF PRONOUNCING THE ORDER : OCTOBER 23, 2019 ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT(A) 5, KOLKATA DATED 11.12.2018 PASSED EX-PARTE WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY WHICH FILED ITS RETURN OF INCOME FOR THE YEAR UNDER CONSIDERATION ON 25.09.2013 DECLARING A TOTAL INCOME AT NIL. IN THE ASSESSMENT COMPLETED U/S 143(3) VIDE AN ORDER DATED 30.03.2016, ADDITIONS OF RS. 8,81,969/- AND RS. 18,78,172/- WERE MADE BY THE AO ON ACCOUNT OF DISALLOWANCE U/S 14A READ WITH RULE 8D AND UNEXPLAINED EXPENDITURE U/S 69C RESPECTIVELY. 3. AGAINST THE ASSESSMENT MADE BY THE AO U/S 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEFORE THE LD. CIT(A) AND SINCE THERE WAS NO COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY 2 I.T.A. NO. 1157/KOL/2019 ASSESSMENT YEAR: 2013-14 DANIEL VYAPAAR PVT. LTD. HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE HIS APPELLATE ORDER DATED 11.12.2018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(A), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING FIXED BEFORE THE TRIBUNAL, NONE HAS APPEARED ON BEHALF OF THE ASSESSEE. THIS APPEAL OF THE ASSESSEE IS THEREFORE BEING DISPOSED OF EX-PARTE AFTER CONSIDERING THE ARGUMENTS OF THE LEARNED DR AND PERUSING THE RELEVANT MATERIAL AVAILABLE ON RECORD. IT IS OBSERVED THAT THE APPEAL OF THE ASSESSEE WAS FIXED FOR HEARING BY THE LD. CIT(A) ON THREE OCCASIONS AND SINCE NONE APPEARED ON BEHALF OF THE ASSESSEE ON THE SAID THREE OCCASIONS, HE PROCEEDED TO DISMISS THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE HIS IMPUGNED ORDER PASSED EX-PARTE WITHOUT EVEN MENTIONING AS TO HOW THE NOTICES OF THE SAID HEARING WERE SENT TO THE ASSESSEE AND WHETHER THE SAME WERE DULY SERVED ON THE ASSESSEE. MOREOVER, AS PER THE PROVISIONS OF SUB-SECTION (6) OF SECTION 250, THE LD. CIT(A) WAS REQUIRED TO DISPOSE OF THE APPEAL OF THE ASSESSEE VIDE AN ORDER IN WRITING STATING THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR THE DECISION. IT IS OBSERVED THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) DOES NOT COMPLY WITH THESE REQUIREMENTS. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 3 I.T.A. NO. 1157/KOL/2019 ASSESSMENT YEAR: 2013-14 DANIEL VYAPAAR PVT. LTD. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 23 RD OCTOBER, 2019. SD/- (P.M. JAGTAP) VICE PRESIDENT DATED: 23/10/2019 BISWAJIT, SR. PS COPY OF ORDER FORWARDED TO: 1. DANIEL VYAPAAR PVT. LTD., 251, G.T. ROAD, LILUAH, HOWRAH 711 204. 2. DCIT, CIRCLE 14(2), KOLKATA. 3. THE CIT(A) 4. THE CIT 5. DR TRUE COPY, BY ORDER, ASSISTANT REGISTRAR / H.O.O. ITAT, KOLKATA