The Eastern Tea Co. Ltd., , Kolkata V. DCIT, Circle - 4, Kolkata , Kolkata

ITA 1386/KOL/2017

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 6245 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-07-2018
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 09-06-2017
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: A BHATTACHARJEE A DDL
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI S.S. GODARA, JM & SHRI M.BAL AGANESH, AM ] I.T.A NO. 1386/KOL/20 17 ASSESSMENT YEAR : 2007-0 8 THE EASTERN TEA CO. LTD -VS- DCIT, CIRCLE-4, KOLKATA [PAN: AABCT 1451 E ] (APPELLANT) (RESPOND ENT) FOR THE APPELLANT : SHRI ANIL KOCHAR, ADVOCATE FOR THE RESPONDENT : SHRI A BHATTACHARJEE, A DDL. CIT DATE OF HEARING : 12.06.2018 DATE OF PRONOUNCEMENT : 04.07.2018 ORDER PER M.BALAGANESH, AM 1. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-2, KOLKATA [IN SHORT THE LD CI T(A)] IN APPEAL NO. 213/CIT(A)- 2/14-15 DATED 18.04.2017 AGAINST THE ORDER PASSED BY THE DCIT, CIRCLE-4, KOLKATA [ IN SHORT THE LD AO] UNDER SECTION 143(3) OF THE INC OME TAX ACT, 1961 (IN SHORT THE ACT) DATED 29.12.2009 FOR THE ASSESSMENT YEAR 20 07-08. 2. WE FIND THAT THE ASSESSEE HAD RAISED SEVERAL GRO UNDS AGAINST THE ACTION OF THE LD CITA UPHOLDING THE DISALLOWANCE OF VARIOUS EXPENSES. WE FIND THAT THE ASSESSEE HAD ALSO RAISED ONE GROUND STATING THAT ADEQUATE OPPORTUNITY WAS NOT GIVEN TO IT BY THE LD CITA AND THAT THE ORDER OF THE LD CITA HAD BEEN PASSED E X PARTE. WE DEEM IT FIT AND 2 ITA NO.1386/KOL/2017 THE EASTERN TEA CO. LTD. A.YR. 2007-08 2 APPROPRIATE TO ADDRESS THIS PRELIMINARY ISSUE ON TH E VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 3. THE BRIEF FACTS OF THIS ISSUE ARE THAT THE ASSES SMENT WAS COMPLETED U/S 143(3) OF THE ACT DATED 29.12.2009 FOR THE ASST YEAR 2007-08 DETE RMINING TOTAL INCOME AT RS NIL AFTER MAKING HUGE DISALLOWANCES AND ADDITIONS. TH E ASSESSEE PREFERRED AN APPEAL BEFORE THE LD CITA SOUGHT ADJOURNMENT ON FEW OCCASI ONS AND DID NOT APPEAR ON CERTAIN OCCASIONS. ACCORDINGLY, THE LD CITA DECIDED THE AP PEAL EX PARTE BY DISMISSING THE APPEAL OF THE ASSESSEE. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 4. THE LD AR PRAYED BEFORE US THAT ONE MORE OPPORTU NITY MAY BE GRANTED TO THE ASSESSEE TO ADDRESS ITS GRIEVANCES BEFORE THE LD CITA. IN R ESPONSE TO THIS, THE LD DR VEHEMENTLY OBJECTED TO REMANDING THIS APPEAL TO THE FILE OF TH E LD CITA IN AS MUCH AS THE ASSESSEE HAD NOT BOTHERED TO APPEAR BEFORE THE LD CITA ON CE RTAIN OCCASIONS . 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE FIND THA T THE ORDER OF THE LD CITA HAS BEEN PASSED EX PARTE AND THAT THE ASSESSMENT HAS BEEN CO MPLETED AFTER MAKING SEVERAL DISALLOWANCE OF EXPENSES. IN THE FACTS AND CIRCUMST ANCES, WE DEEM IT FIT AND APPROPRIATE , IN THE INTEREST OF JUSTICE AND FAIR PLAY, TO REMA ND THIS APPEAL TO THE FILE OF THE LD CITA FOR DE NOVO ADJUDICATION BY GIVING 3 EFFECTIVE OPPO RTUNITIES TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO CO-OPERATE WITH THE LD CITAS PROCEEDINGS AND NOT TO TAKE ADJOURNMENT EXCEPT DUE TO BONAFIDE OR EXCEPTIONAL C IRCUMSTANCES. THE LD CITA IS ALSO DIRECTED TO DISPOSE OF THIS APPEAL AFTER GIVING 3 E FFECTIVE OPPORTUNITIES TO THE ASSESSEE AND PASS ORDERS IN ACCORDANCE WITH LAW, UNINFLUENCE D BY EARLIER DECISION TAKEN IN THIS 3 ITA NO.1386/KOL/2017 THE EASTERN TEA CO. LTD. A.YR. 2007-08 3 REGARD. ACCORDINGLY, THE GROUNDS RAISED BY THE ASSE SSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 04.07.2018 SD/- SD/- [S.S. GODARA] [ M .BALAGANESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 04.07.2018 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. THE EASTERN TEA CO. LTD. C/O, S.L. KOCHAR, ADVOC ATE, 86, CANNING STREET, KOLKATA-1 2. DCIT, CIRCLE-4, KOLKATA, AAYAKAR BHAWAN, KOLKAT A 3..C.I.T.- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S