Kedar Prakash Vanjape, Pune V. Deputy Commissioner of Income-tax,

ITA 1293/PUN/2016

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 5270 (ITAT-PUNE)
• Duration Of Justice: 2 year(s) 1 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 24-07-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 13-06-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Reasonable cause
• Section: 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH A , PUNE , , BEFORE MS. SUSHMA CHOWLA, JM AND SHRI ANIL CHATURVEDI, AM . / ITA NO. 1293 /P U N/20 16 / ASSESSMENT YEAR : 20 11 - 12 KEDAR PRAKASH VANJAPE, FLAT NO.301, CHAITANYA, SANGEETA CO - OP. SOCIETY, KARVENAGAR, PUNE 411052 . / APPELLANT PAN: A CRPV2069H VS. THE DY. COMMISSIONER OF INCOM E TAX, CIRCLE 3, PUNE . / RESPONDENT / APPELLANT BY : NONE / RESPONDENT BY : SHRI AJAY MODI / DATE OF HEARING : 23 .0 7 . 201 8 / DATE OF PRONOUNCEMENT: 24 . 0 7 .201 8 / ORDER PER SUSHMA CHOWLA, J M : TH E APPEAL FILED BY THE ASSESSEE IS AGAINST THE ORDER OF CIT (A) - 3 , PUNE , DATED 2 3 . 0 2 .20 16 RELATING TO ASSESSMENT YEAR 20 11 - 12 AGAINST ORDER PASSED UNDER SECTION 144 OF THE INCOME - TAX ACT , 1961 (IN SHORT T HE ACT) . 2 . THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: - ON FACTS AND IN LAW, 1] THE LEARNED CIT(A) ERRED IN NOT CONDONING THE DELAY IN FILING THE APPEAL AGAINST THE ASST. ORDER AND THEREBY ERRED IN DISMISSING THE APPEAL FILED BY THE ASSES SEE. ITA NO. 1293 /P U N/20 16 KEDAR P VANJAPE 2 2] THE LEARNED CIT(A) FAILED TO APPRECIATE THAT THE ASSESSEE HAD A REASONABLE CAUSE FOR THE DELAY IN FILING THE APPEAL AND HENCE, THE DELAY OUGHT TO HAVE BEEN CONDONED AND THE APPEAL OF THE ASSESSEE SHOULD HAVE BEEN DECIDED ON MERITS. 3] THE LEARNED CIT(A) FURTHER ERRED IN NOT APPRECIATING THAT THE VARIOUS ADDITIONS MADE BY THE A.O. WERE NOT JUSTIFIED AND THE SAME SHOULD HAVE BEEN DELETED. 3. DESPITE SERVICE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY APPLICATION WAS MOVED FOR ADJOURN MENT. HOWEVER, BECAUSE OF THE ISSUE INVOLVED, THE APPEAL WAS HEARD EX - PARTE THE ASSESSEE AND IS BEING DECIDED AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE. 4. THE ASSESSEE IS AGGRIEVED BY THE ORDER OF CIT(A) IN NOT CONDONING TH E DELAY IN FILING THE APPEAL LATE AGAINST THE ASS ESSMENT ORDER AND THEREBY ERRED IN DISMISSING THE APPEAL FILED BY THE ASSESSEE. THE ASSESSEE IS ALSO AGGRIEVED BY THE ADDITIONS MADE BY THE ASSESSING OFFICER UNDER THE EX - PARTE ORDER , WHICH WAS UPHELD BY CI T(A) . 5. BRIEFLY, IN THE FACTS OF THE CASE, THE ASSESSEE HAD FILED THE RETURN OF INCOME DECLARING TOTAL INCOME OF 28,86,680/ - . THE CASE OF ASSESSEE WAS TAKEN UP FOR SCRUTINY. HOWEVER, ASSESSMENT WAS COMPLETED EX - PARTE THE ASSESSEE UNDER SECTION 144 OF THE ACT AFTER MAKING ADDITION OF 77,79,410/ - AND ASSESSING THE TOTAL INCOME AT 1,06,66,090/ - . 6. BEFORE THE C IT(A), THE ASSESSEE FILED AN APPEAL WHICH WAS LATE BY FOUR MONTHS AND FOURTEEN DAYS. THE ASSESSEE FILED CONDONATION APPLICATION BEFORE THE CIT(A) AND ALSO MENTIONED THAT BECAUSE OF CHANGE IN HIS RESIDENTIAL ADDRESS, HE DID NOT RECEIVE ANY OF THE NOTICES W HICH WERE ISSUED BY THE ITA NO. 1293 /P U N/20 16 KEDAR P VANJAPE 3 ASSESSING OFFICER. HE ALLEGED THAT NO PROPER OPPORTUNITY WAS GIVEN BY THE ASSESSING OFFICER BEFORE PASSING THE EX - PARTE ORDER UNDER SECTION 144 OF THE ACT. THE ASSESSEE ALSO POINTED OUT THAT BECAUSE OF MEDICAL CONDITION OF HIS FAT HER, NOTICES SERVED AT THE OLD ADDRESS, WERE NOT COMMUNICATED TO HIM. THE CIT(A) REJECTED THE CONTENTION OF ASSESSEE AS THE NEW ADDRESS WAS NOT COMMUNICATED TO THE ASSESSING OFFICER. HE ALSO T AKES NOTE OF THE FACT THAT ONE OF THE NOTICES WAS ATTENDED BY THE ASSESSEE BUT HE DID NOT FILE DETAILS AND THEREAFTER, DID NOT APPEAR AND HENCE EX - PARTE ORDER BY THE ASSESSING OFFICER. THE CIT(A) THUS, REJECTED THE PLEA OF ASSESSEE AND ALSO REJECTED THE CONDONATION APPLICATION FILED IN RESPECT OF APPEAL BEING FILED LATE. THE APPEAL OF ASSESSEE WAS DISMISSED WITHOUT DECIDING THE ISSUE ON MERITS OF THE ADDITIONS MADE AS THE ASSESSEE WAS GIVEN SEVERAL OPPORTUNITIES BY THE ASSESSING OFFICER. 7. THE ASSESSEE IS IN APPEAL AGAINST THE SAID ORDER OF CIT(A). 8. WE FIND TH IS TO BE A FIT CASE WHERE PRINCIPLES OF NATURAL JUSTICE STAND VIOLATED. IT IS AN ESTABLISHED LAW THAT NO PERSON SHOULD BE CONDEMNED UNHEARD. THE ASSESSING OFFICER NO DOUBT HAD GIVEN NOTICE /S OF HEARING A T THE OLD ADDRESS OF ASSESSEE AND HENCE, THERE WAS NON - COMPLIANCE BEFORE THE ASSESSING OFFICER. THE ASSESSEE EXPLAINED THE POSITION BEFORE THE CIT(A), WHO CHOSE TO IGNORE THE SAME. THE ASSESSEE ALSO FILED AN APPLICATION FOR CONDONING THE DELAY IN FILING THE APPEAL LATE BEFORE THE CIT(A), WHICH WAS ALSO N OT ALLOWED. WE FIND NO MERIT IN THE ORDER OF CIT(A) IN THIS REGARD. WE ARE OF THE VIEW THAT THE ASSESSEE HAD FILED THE APPEAL LATE ABOUT FOUR MONTHS AND FOURTEEN DAYS AND THE SAME MERITS TO BE CONDONED. WE CONDONE THE DELAY ITA NO. 1293 /P U N/20 16 KEDAR P VANJAPE 4 AND WE ALSO FIND MERIT IN THE PLEA OF ASSESSEE AND RESTORE THE MATTER BACK TO THE FILE OF ASSESSING OFFICER FOR DO NOVO ASSESSMENT. THE ASSESSEE IS DIRECTED TO FILE CORRECT ADDRESS FOR COMMUNICATION BEFORE THE ASSESSING OFFICER AFTER RECEIPT OF THE ORDER OF TRIBUNAL. THE ASSESSING O FFICER IS ALSO DIRECTED TO COMPLETE ASSESSMENT DE NOVO AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE IS DIRECTED TO CO - OPERATE AND FURNISH THE DETAILS BEFORE THE ASSESSING OFFICER. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE THUS, ALLOWED FOR STATISTICAL PURPOSES. 9 . IN THE RESULT, THE APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THIS 24 TH DAY OF JULY , 201 8 . SD/ - SD/ - (ANIL CHATURVEDI ) (SUSHMA CHOWLA ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER / PUNE ; DATED : 24 TH JULY , 201 8 . GCVSR / COPY OF THE ORDER IS FORWARDED TO : 1. / THE APPELL ANT ; 2. / THE RESPONDENT; 3. ( ) / THE CIT (A) - 3, PUNE ; 4. THE PR.CIT - 3, PUNE ; 5. , , / DR A , ITAT, PUNE; 6. / GUARD FILE. / BY ORDER , // T RUE COPY // / SR. PRIVATE SECRETARY , / ITAT, PUNE