Demarte Fashion Yarns, Ludhiana V. ITO, W-1(1), Ludhiana

ITA 1217/CHANDI/2018

• Counselvise Citation: [2019] 118 COUNSELVISE.COM (IT) 5586 (ITAT-CHANDIGARH)
• Duration Of Justice: 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-02-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 14-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 10

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH SMC , CHANDIGARH . . , BEFORE SHRI N.K. SAINI, VICE PRESIDENT ./ ITA NO.1217/CHD/2018 / ASSESSMENT YEAR : 2013-14 DEMARTE FASHION YARNS, 193-C, PHASE-VI, FOCAL POINT, LUDHIANA. THE I.T.O., WARD-1(1), LUDHIANA. ./PAN NO: AAAFFD0312B /APPELLANT /RESPONDENT /ASSESSEE BY : SHRI GURSIMRAN SINGH, OFFICE EMPLOYEE ! / REVENUE BY : SMT.CHANDERKANTA, SR.DR ' # $ /DATE OF HEARING : 28.01.2019 %&'( $ /DATE OF PRONOUNCEMENT: 04.02.2019 /ORDER THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST THE ORDER DATED 6.7.2018 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-1, LUDHIANA (IN SHORT CIT(A)). 2. THE LD. COUNSEL FOR ASSESSEE MOVED AN APPLICATIO N FOR ADJOURNMENT BUT NO REASON HAS BEEN ASSIGNED FOR SEE KING THE ADJOURNMENT, THEREFORE, THE SAME WAS REJECTED. 3. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEA L: 1. THAT THE ORDER OF THE PRINCIPAL COMMISSIONER OF INCOME TAX ARE BOTH THE AGAINST THE FACTS OF THE CAS E AND ARE UNTENABLE IN LAW. 2. THAT THE A.O. HAS DISALLOWED RS.150093/- ON THE ACCOUNT OF CAPITALIZATION OF INTEREST U/S 36(L)(III) O N ACCOUNT OF BUILDING UNDER CONSTRUCTION. THE ASSESSE E HAS MADE ADDITION IN BUILDING WHICH IS BEING USED BY THE ASSESSEE. THE A.O. HAS ACCEPTED THAT PART OF ITA NO.1217/CHD/2018 A.Y.2013-14 2 BUILDING WAS COMPLETED DURING THE YEAR. THE ASSESSEE HAS NOT TAKEN ANY LOAN FOR CONSTRUCTION OF BUILDING AND THE SAME IS BEING CONSTRUCTED OUT OF INTERNAL ACCRUALS. SO THE DISALLOWANCE OF INTEREST IS NOT JUSTIFIED. 3. A.O. HAS DISALLOWED RS.35000/- ON ACCOUNT OF DISALLOWANCE OF EXPENSES ON ESTIMATED BASIS . A.O. HAS ALREADY ADDED BACK RS.112141/- ON ACCOUNT OF PERSONAL USE OF CAR, TELEPHONE AND MOBILE EXPENSES. SO RS.35000/- IS NOT JUSTIFIED. 4. ANY OTHER GROUND OF APPEAL WHICH MAY BE URGED AT THE TIME OF HEARING OF THE APPEAL. 4. IT IS NOTICED THAT THE LD.CIT(A) DECIDED THE AP PEAL OF THE ASSESSEE EX-PARTE BY OBSERVING IN PARA 5 OF THE IMPUGNED ORDER AS UNDER: 5. HOWEVER, WHEN THE AFORESAID APPEAL WAS CALLED OUT FOR HEARING, THE APPELLANT KEPT SEEKING ADJOURNMENTS FOR NO APPARENT GOOD REASON. ADJOURNMENTS WERE GRANTED TO THE APPELLANT FOR NOT LE SS THAN 10 TIMES IN THE PAST. WHEN THE CASE WAS LAST ADJOURNED FOR 05/07/2018 WITH SPECIFIC INFORMATION TO THE APPELLANT THAT NO FURTHER ADJOURNMENT SHALL BE GRANTED, THERE WAS NO COMPLIANCE ON THAT DATE ALSO. FROM THE AFORESAID CONDUCT OF THE APPELLANT, IT APPEARS THAT THE APPEL LANT IS NOT INTERESTED IN PROSECUTING THE APPEAL VOLUNTARIL Y FILED BY IT. THE APPEAL IS, THEREFORE, BEING DECIDED E X PARTE WITHOUT ANY FURTHER REFERENCE TO THE APPELLAN T FIRM. 5. DURING THE COURSE OF HEARING, THE LD. SR.DR STAT ED THAT THE ASSESSEE WAS NON-COOPERATIVE AND DID NOT APPEAR BEFORE THE LD.CIT(A), SO, THERE WAS NO ALTERNATIVE EXCEPT TO DECIDE THE APPEAL OF THE ASSESSEE EX-PARTE. 6. AFTER CONSIDERING THE SUBMISSIONS OF THE LD. DR AND THE MATERIAL AVAILABLE ON RECORD, IT IS NOTICED THAT TH E LD.CIT(A) SIMPLY MENTIONED THAT THE ASSESSEE KEPT SEEKING ON ADJOURNMENT FOR NO APPARENT GOOD REASON. HE DID NOT MENTION AS TO WHETHER THE NOTICE OF HEARING WAS SER VED UPON ITA NO.1217/CHD/2018 A.Y.2013-14 3 THE ASSESSEE OR WHAT WAS THE REASON FOR SEEKING THE ADJOURNMENT. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERAM PARTEM. I, THEREFORE, BY KEEPING IN VIEW THE AFORE SAID FACTS OF THE PRESENT CASE, DEEM IT APPROPRIATE TO SET ASI DE THE CASE OF THE ASSESSEE TO THE FIE OF THE LD.CIT(A) TO BE D ECIDED AFRESH IN ACCORDANCE WITH LAW, AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04.02.2019. SD/- (N.K.SAINI) VICE PRESIDENT '# /DATED: 4 TH FEBRUARY, 2019 * * &) *+ ,+ / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ' - / CIT 4. ' - ( )/ THE CIT(A) 5. +./ 0 , $ 0 , 123/4 / DR, ITAT, CHANDIGARH 6. /3 5# / GUARD FILE &) ' / BY ORDER, ! / ASSISTANT REGISTRAR ITA NO.1217/CHD/2018 A.Y.2013-14 4