M/s Futuristics Garments Pvt. Ltd., Chandigarh V. DCIT, Central Circle I, , Chandigarh

ITA 1423/CHANDI/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0968 (ITAT-CHANDIGARH)
• Duration Of Justice: 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 06-11-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: C CHANDRAKANTA
• Keywords: Invalid notice; Opportunity of being heard; Principle of natural justice; Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, A,CHANDIGARH . . , , BEFORE SHRI N.K. SAINI, VICE PRESIDENT & SHRI SANJAY GARG, JUDICIAL MEMBER ./ ITA NO. 1423/CHD/2019 ! / ASSESSMENT YEAR : 2012-13 M/S FUTURISTIC GARMENTS PVT. LTD., SCO 141-143, SECTOR 43-B, CHANDIGARH '# THE DCIT, CENTRAL CIRCLE-1, CHANDIGARH $ % ./PAN NO: AAACF8959Q $&/ APPELLANT ()$& /RESPONDENT HEARING THOUGH VIDEO CONFERENCING *+ , - /ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE , - / REVENUE BY : SMT. C. CHANDRAKANTA, CIT DR . / , +0% /DATE OF HEARING : 02.06.2020 12! , +0% / DATE OF PRONOUNCEMENT : 02.06.2020 / ORDER PER SANJAY GARG, JUDICIAL MEMBER: THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 5.8.2019 OF THE COMMISSIONER OF INCOME TAX (APPEALS)-3, GURGAON [HEREINAFTER REFERRED TO AS CIT(A)] 2. THE ASSESSEE IN THIS APPEAL HAS TAKEN FOLLOWING GROUNDS OF APPEAL:- ITA NO. 1423-CHD-2019 M/S FUTURISTIC GARMENTS PVT LTD., CHANDIGARH 2 1. THAT THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HA S ERRED IN PASSING AN EX-PARTE ORDER WHICH IS AGAINST THE PRINCIPALS OF NATURAL JUSTICE AND AS SUCH THE ORDER PASSED IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 2. WITHOUT PREJUDICE TO THE ABOVE, THE LD. COMMISSIONE R OF INCOME TAX(APPEALS) ERRED IN LAW AND FACTS IN FAILI NG TO ADJUDICATE THE SPECIFIC GROUND OF APPEAL WHEREIN IT WAS CHALLENGED THAT THE ASSESSING OFFICER DID NOT RECOR D THE MANDATORY SATISFACTION IN THE ASSESSMENT ORDER BEFO RE INITIATION OF PENALTY WHETHER FOR CONCEALMENT OF IN COME OR FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND AS SUCH THE PENALTY ORDER IS ILLEGAL, ARBITRARY AND UN JUSTIFIED. 3. THAT THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HA S FURTHER ERRED IN LAW AND FACTS IN FAILING TO ADJUDI CATE THE SPECIFIC GROUND OF APPEAL WHEREIN IT WAS CHALLENGED THAT THE LD. ASSESSING OFFICER HAS ERRED IN LAW IN FAILI NG TO MENTION WHETHER NOTICE UNDER SECTION 271(1 )(C) ISS UED WAS FOR CONCEALMENT OF INCOME OR FOR FURNISHING INACCURATE PARTICULARS OF INCOME AND AS SUCH PENALT Y IMPOSED IN PURSUANCE OF AN INVALID NOTICE IS ILLEGA L, ARBITRARY AND UNJUSTIFIED. 4. THAT THE LD. COMMISSIONER OF INCOME TAX(APPEALS) HA S FURTHER ERRED IN LAW AND FACTS IN FAILING TO ADJUDI CATE THE SPECIFIC GROUND OF APPEAL WHEREIN IT WAS CHALLENGED THAT THE LD. ASSESSING OFFICER HAS FURTHER ERRED IN IMPO SING PENALTY UNDER SECTION 271(1 )(C) OF THE ACT WITHOUT MENTIONING THE CHARGE AS TO WHETHER THE PENALTY IS LEVIED FOR FURNISHING INACCURATE PARTICULARS OR FOR CONCEA LMENT OF INCOME AND AS SUCH THE ORDER PASSED IS ILLEGAL, ARB ITRARY AND UNJUSTIFIED. 5. WITHOUT PREJUDICE TO THE ABOVE, THE LD. COMMISSION ER OF INCOME TAX(APPEALS) HAS ERRED IN LAW AS WELL AS ON FACTS IN UPHOLDING THE IMPOSITION OF PENALTY OF RS. 1,76, 05,019/ - UNDER SECTION 271(1 )(C) OF THE ACT WHICH IS ILLEGA L, ARBITRARY AND UNJUSTIFIED. ITA NO. 1423-CHD-2019 M/S FUTURISTIC GARMENTS PVT LTD., CHANDIGARH 3 6. THAT THE PENALTY IMPOSED UNDER SECTION 271 (1 )(C) OF THE ACT IS NOT IMPOSABLE IN AS MUCH AS THERE IS NEITHER ANY CONCEALMENT OF INCOME NOR FURNISHING OF ANY INACCUR ATE PARTICULARS OF INCOME AND AS SUCH THE ORDER PASSED UNDER SECTION 271(L)(C) OF THE ACT IS ILLEGAL, ARBITRARY AND UNJUSTIFIED. 7. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX(APPEALS) PASSED UNDER SECTION 271 (1 )(C) OF TH E ACT IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF T HE CASE AND IS, THUS, UNTENABLE 4. VIDE GROUND NO.1 THE MAIN GRIEVANCE OF THE OF TH E ASSESSEE RELATES TO THE EX-PARTE ORDER PASSED BY THE LD. CIT(A) AGA INST THE PRINCIPLES OF NATURAL JUSTICE. 5. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE AT THE VERY OUTSET HAS STATED THAT NO NOTICE OF HEARIN G FOR THE DATE FIXED WAS RECEIVED BY THE ASSESSEE FROM THE LD. CIT(A), T HEREFORE, HE WAS NOT JUSTIFIED IN PASSING THE EX-PARTE ORDER WITHOUT PR OVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. 6. IN HER RIVAL SUBMISSIONS THE LD. CIT DR ALTHOUGH SUPPORTED THE ORDERS OF THE LD. CIT(A) BUT COULD NOT CONTROVERT T HE AFORESAID CONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 7. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE P ARTIES AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN T HE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE LD. CIT(A) PASSED THE IMPUGN ED ORDER EX-PARTE ITA NO. 1423-CHD-2019 M/S FUTURISTIC GARMENTS PVT LTD., CHANDIGARH 4 AND NOTHING IS BROUGHT ON RECORD TO SUBSTANTIATE TH AT THE NOTICE FOR HEARING WAS SERVED UPON THE ASSESSEE. IT IS WELL SE TTLED THAT NOBODY SHOULD BE CONDEMNED, UNHEARD AS PER THE MAXIM, AUD I ALTERAM PERTAM . WE, THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFT ER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESS EE. IN THE RESULT, THE APPEAL OF THE ASSESSEE STANDS AL LOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 02.06.2020. SD/- SD/- ( . . / N.K. SAINI) ( ! / SANJAY GARG) '#$ / VICE PRESIDENT %& / JUDICIAL MEMBER DATED : 02.06.2020 .. 3,(+45 65!+ / COPY OF THE ORDER FORWARDED TO : 1. $& / THE APPELLANT 2. ()$& / THE RESPONDENT 3. . 7+ / CIT 4. . 7+ ( )/ THE CIT(A) 5. 58(+9 , 09 , :;<= / DR, ITAT, CHANDIGARH 6. <>/ / GUARD FILE 3 . / BY ORDER, ? / ASSISTANT REGISTRAR