Raman Khanna, Shimla V. Addl. CIT, Range, Shimla

ITA 1226/CHANDI/2018

• Counselvise Citation: [2019] 116 COUNSELVISE.COM (IT) 9910 (ITAT-CHANDIGARH)
• Duration Of Justice: 8 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2008-2009
• Appeal Filed On: 24-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MANJIT SINGH
• Assessee Lawyers: RAMAN KHANNA
• Keywords: Opportunity of being heard; Principle of natural justice; Right to appeal; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH SMC CHANDIGARH , ! BEFORE: SMT. DIVA SINGH, JM ./ ITA NO. 1226/CHD/2018 / ASSESSMENT YEAR : 2008-09 SHRI RAMAN KHANNA, HOUSE CIRCUS ANANDPUR, SHOGHI, SHIMLA (HP). VS THE ADDL. CIT, RANGE, SHIMLA. ./PAN NO. : AAACS1307F /APPELLANT /RESPONDENT /ASSESSEE BY : SHRI RAMAN KHANNA, ASSESSEE / REVENUE BY : SHRI MANJIT SINGH, CIT-DR ! ' # /DATE OF HEARING : 14.05.2019 $%&' # /DATE OF PRONOUNCEMENT : 31.05.2019 '# /ORDER THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A SSAILING THE CORRECTNESS OF THE ORDER DATED 25/07/2018 OF CIT(A) SHIMLA PERTAINING TO 200 8-09 ASSESSMENT YEAR ON THE FOLLOWING GROUNDS : A) FORM 26 AS WHICH INCORPORATED TRANSACTIONS SUBSEQUE NT TO THE DATE OF FILING RETURN COULD NOT HAVE BEEN THE BASIS FOR MAKING THE ADDITI ONS MADE ESPECIALLY WHEN RETURN HAS BEEN FILED ON THE BASIS OF FROM 16 ISSUED BY THE DE DUCTORS. B) THAT GENUINE EXPENDITURE INCURRED TO EARN THE PROFE SSIONAL INCOME SHOULD HAVE BEEN ALLOWED IN THE INTEREST OF NATURAL JUSTICE. C) I HAT INTEREST PAID ON BORROWED CAPITAL FOR SETTING UP OFFICE SHOULD HAVE BEEN ALLOWED, D) THE ASSESSEE CRAVES TO ADD, WITHDRAW, AMEND, ANY OT HER GROUND OF APPEAL WITH THE PERMISSION OF THE CHAIR. 2. AT THE TIME OF HEARING, THE ASSESSEE APPEARING I N PERSON SOUGHT TO ADDRESS THE GROUNDS RAISED. THE ASSESSEE WAS REQUIRED TO SUBMIT WHETHER HE HAS ENGAGED A COUNSEL OR WOULD HE BE ARGUING THE APPEAL HIMSELF. MR RAMAN KHANNA SUBMITT ED THAT THOUGH HE HAS ENGAGED A COUNSEL, HOWEVER, HE IS NOT IN STATION, ACCORDINGLY, HE WOUL D EXPLAIN HIS CASE HIMSELF. 3. THE LD. CIT-DR WAS HEARD. ITA 1226/CHD/2018 A.Y. 2008-09 PAGE 2 OF 2 4. A PERUSAL OF THE IMPUGNED ORDER AND THE SPECIFI C GROUNDS RAISED BY THE ASSESSEE CLEARLY DEMONSTRATE THAT THE ASSESSEE WAS UNABLE TO COMPREH END THE NITTY GRITTIES OF THE LEGAL POINTS INVOLVED. A PERUSAL OF THE IMPUGNED ORDER SHOWS THA T EVEN WHERE HE WAS REPRESENTED BY A COUNSEL, THE OPPORTUNITY SO PROVIDED COULD NOT BE A VAILED OF BY PLACING RELEVANT FACTS AND EVIDENCES ON RECORD. ACCORDINGLY, IN THE INTERESTS OF SUBSTANTIAL JUSTICE, IT IS DEEMED APPROPRIATE TO SET ASIDE THE IMPUGNED ORDER BACK TO THE FILE OF THE CIT(A) REQUIRING THE ASSESSEE TO SEEK SOME PROFESSIONAL HELP IN DRAFTING THE GROUNDS AND ADDRESSING THE SPECIFIC PRAYER AND SUPPORT THE SAME BY WAY OF DOCUMENTS AND EVIDENCES AS IN TH E ABSENCE OF ANY PROPER REPRESENTATION, THE RIGHT TO APPEAL IS A MEANINGLESS EXERCISE. ACCORDIN GLY, ACCEPTING THE ORAL PRAYER OF THE PARTIES BEFORE THE BENCH, THE IMPUGNED ORDER IS SET ASIDE B ACK TO THE FILE OF THE CIT(A) WITH THE DIRECTION TO PASS A SPEAKING ORDER IN ACCORDANCE WI TH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. THE ASSESSEE IS ADVISE D TO FILE PROPER GROUNDS AS MENTIONED EARLIER AND UTILISE THE OPPORTUNITY SO PROVIDED IN GOOD FAI TH BY MAKING A FULL AND PROPER REPRESENTATION FAIRLY. WHILE SO DIRECTING, IT IS MADE CLEAR THAT I N THE EVENTUALITY OF ABUSE OF THE TRUST REPOSED, THE CIT-A WOULD BE AT LIBERTY TO PASS AN ORDER ON T HE BASIS OF MATERIAL AVAILABLE ON RECORD. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 3. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE OPEN COURT ON 31.05. 2019. SD/- ( ) (DIVA SINGH) ! /JUDICIAL MEMBER $ % %( )* +* / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. ! , / CIT 4. ! , ( )/ THE CIT(A) 5. *-. / , # / , 012.3 / DR, ITAT, CHANDIGARH 6. .2 4' / GUARD FILE %( ! / BY ORDER, 5 / ASSISTANT REGISTRAR