Naresh Kumar Jain, CHENNAI V. ITO N.C.W 5(2), CHENNAI

ITA 1345/CHNY/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 3901 (ITAT-CHENNAI)
• Duration Of Justice: 6 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-10-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2014-2015
• Appeal Filed On: 23-04-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: S SUNIL KUMAR JAIN
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 14A

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY, JUDICIAL MEMBER ./ I.T.A.NO.1345/CHNY/2018 / ASSESSMENT YEAR:2014-15 SHRI NARESH KUMAR JAIN, 10, VENKU IYER ST., KONDITHOPE, CHENNAI 600 001. [PAN:AAPPN0443B] VS. THE INCOME TAX OFFICER, NON CORPORATE WARD 5(2), CHENNAI. ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI S. SUNIL KUMAR JAIN, C.A. / RESPONDENT BY : SHRI AR. V. SREENIVASAN, JCIT / DATE OF HEARING : 22.10.2018 /DATE OF PRONOUNCEMENT : 30.10.2018 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 5, CHENNAI DATED 16.02.2018 RELEVANT TO THE ASSESSMENT YEAR 2014-15. BESIDES, CHALLENGING VARIOUS GROUNDS IN THE GROUNDS OF APPEAL, IT WAS MAINLY ARGUED TO SET ASIDE THE EX-PARTE ORDER OF THE LD. CIT(A) BY GRANTING OF ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. I.T.A. NO.1345/CHNY/18 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED RETURN OF INCOME ADMITTING TOTAL INCOME AT .4,39,420/-. THE CASE WAS SELECTED FOR SCRUTINY AND VERIFIED THE BOOKS OF ACCOUNTS AS FURNISHED BY THE ASSESSEE AGAINST STATUTORY NOTICES. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, AFTER CONSIDERING VARIOUS SUBMISSIONS, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT AND DETERMINED TOTAL INCOME OF THE ASSESSEE AT . 17,59,391/- AFTER BY DISALLOWING .7,80,020/- TOWARDS INTEREST CLAIM, .1,17,118/- TOWARDS PENALTY PAID TO BANK, .1,47,365/- UNDER SECTION 14A R.W. RULE 8D, .2,40,000/- TOWARDS POOR DRAWINGS, .33,158/- TOWARDS PERSONAL USE OF CAR/ TRAVELLING EXPENSES AND .2,310/- TOWARDS DIFFERENCE IN UCO BANK BALANCE. 3. THE ASSESSEE CARRIED THE MATTER IN APPEAL BEFORE THE LD. CIT(A). SINCE THERE WAS NO REPRESENTATION FROM ASSESSEES SIDE WHEN APPEAL WAS FIXED FOR HEARING OR ANY ADJOURNMENT PETITION FILED THE ASSESSEE, AFTER CONSIDERING THE FACTS OF THE CASE, THE LD. CIT(A) CONFIRMED THE DISALLOWANCE AND DISMISSED THE APPEAL OF THE ASSESSEE. 4. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS MAINLY ARGUED THAT DUE TO UNAVOIDABLE CIRCUMSTANCES, THE ASSESSEE COULD NOT PUT HIS APPEARANCE I.T.A. NO.1345/CHNY/18 3 BEFORE THE LD. CIT(A) AND THUS PRAYED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY OF BEING HEARD FOR FURNISHING COMPLETE DETAILS BEFORE THE LD. CIT(A) FOR CONSIDERATION. 5. PER CONTRA, THE LD. DR SUBMITTED THAT THE ASSESSEE WAS GIVEN THREE OPPORTUNITIES TO REPRESENT ITS CASE BEFORE THE LD. CIT(A) FROM OCTOBER 2015 TO AUGUST, 2017 AND OBJECTED FOR GIVING ANY MORE OPPORTUNITY. 6. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. DESPITE GIVING THREE OPPORTUNITIES, NONE APPEARED ON BEHALF OF THE ASSESSEE OR ANY ADJOURNMENT PETITION FILED BEFORE THE LD. CIT(A). IN THE ABSENCE OF ANY DETAILS CONTRARY TO THE OBSERVATIONS OF THE ASSESSING OFFICER, THE LD. CIT(A) CONFIRMED THE VARIOUS ADDITIONS/DISALLOWANCES AND DISMISSED THE APPEAL FILED BY THE ASSESSEE. BEFORE US, THE LD. COUNSEL FOR THE ASSESSEE PRAYED THAT THE ASSESSEE MAY BE GIVEN ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE FOR SUBSTANTIATING ITS CLAIM. IN VIEW OF THE ABOVE AND TO MEET THE ENDS OF NATURAL JUSTICE, WE DIRECT THE LD. CIT(A) TO GIVE ONE MORE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE FOR SUBSTANTIATING ITS CLAIM AND DECIDE THE ISSUES AFRESH IN ACCORDANCE WITH LAW. I.T.A. NO.1345/CHNY/18 4 7. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 30 TH OCTOBER, 2018 AT CHENNAI. SD/- SD/- (ABRAHAM P. GEORGE) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 30.10.2018 VM/- /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.