M/s Sushma Buildtech Ltd., Chandigarh V. DCIT, CC-I, Chandigarh

ITA 1437/CHANDI/2018

• Counselvise Citation: [2018] 112 COUNSELVISE.COM (IT) 5855 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-12-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2014-2015
• Appeal Filed On: 16-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N D GUPTASR DR
• Keywords: Bonafide belief; Application of stay; Set aside

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B, CHANDIGARH , ! '# $ % & '# , () BEFORE SHRI SANJAY GARG, JUDICIAL MEMBER AND MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER ./ ITA NO. 1437/CHD/2018 / ASSESSMENT YEAR : 2014-15 M/S SUSHMA BUILDTECH LTD., SCO 172-173, FIRST FLOOR, SEC 9C, CHANDIGARH (NOW AT B-107,BUSINESS COMPLEX AT ELANTE MALL), FIRST FLOOR, INDUSTRIAL AREA, PHASE-1, CHANDIGARH VS. THE ASSESSING OFFICER, DCIT-CENTRAL CIRCLE-1, CHANDIGARH ./PAN NO: AAJCS8156M / APPELLANT /RESPONDENT & STAY APPLICATION NO. 51/CHD/2018 ( IN ./ ITA NO. 1437/CHD/2018) / ASSESSMENT YEAR : 2014-15 M/S SUSHMA BUILDTECH LTD., NOW AT B-107,BUSINESS COMPLEX AT ELANTE MALL, FIRST FLOOR, INDUSTRIAL AREA, PHASE-1, CHANDIGARH VS. THE AO, DCIT-CENTRAL CIRCLE-1, CHANDIGARH ./PAN NO: AAJCS8156M / APPELLANT /RESPONDENT ! ' # /ASSESSEE BY : SH. PARIKSHIT AGGARWAL, CA $ ' # / REVENUE BY : SH. N.D.GUPTA, SR.DR % & ' !' /DATE OF HEARING : 16.12.2018 ()*+ ' !' / DATE OF PRONOUNCEMENT : 16.12.2018 (*/ ORDER THE PRESENT APPEAL HAS BEEN PREFERRED BY THE ASSESS EE AGAINST THE ORDER DATED 26.02.2018 OF THE COMMISSIONER OF INCOM E TAX(APPEALS)-3, ITA NO. 425-CHD-2018 AND S.A. 51/CHD/2018- M/S SUSHMA BUILDTECH LTD, CHANDIGARH 2 GURGAON [HEREINAFTER REFERRED TO AS CIT(A)]. THE STAY APPLICATION NO. 51/CHD/2018 HAS ALSO BEEN FIXED WITH THIS MAIN APP EAL OF THE ASSESSEE. 2. AT THE OUTSET, LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE IMPUGNED ORDER OF THE CIT(A) AND CONTENDED T HAT THE IMPUGNED ORDER OF THE CIT(A) IS AN EX-PARTE ORDER. THE LD. C OUNSEL FOR THE ASSESSEE HAS FURTHER SUBMITTED THAT THE ASSESSEE DID NOT REC EIVE THE NOTICE OF HEARING OF THE APPEAL FROM THE CIT(A). IT HAS BEEN FURTHER EXPLAINED THAT DURING THE PENDENCY OF THE APPEAL BEFORE THE CIT(A) THE AD DRESS OF THE ASSESSEE GOT CHANGED. THE CHANGE IN ADDRESS WAS DULY NOTIFIE D TO THE INCOME TAX AUTHORITIES ESPECIALLY TO THE CONCERNED INCOME TAX OFFICER. SINCE THE APPEAL WAS FILED ELECTRONICALLY (E-FILED) AND THE INTIMATION OF CHANGE OF ADDRESS WAS ALSO GIVEN ELECTRONICALLY TO THE INCOME TAX OFFICER, SO THE ASSESSEE WAS UNDER BONAFIDE BELIEF THAT THE CHANGE OF ADDRESS WILL AUTOMATICALLY BE INCORPORATED IN THE RECORDS OF THE CIT(A). HOWEVER, THE LD. CIT(A) HAS SENT THE NOTICE AT THE OLD ADDRESS O F THE ASSESSEE WHICH WAS NOT RECEIVED BY THE ASSESSEE. AN AFFIDAVIT OF T HE ASSESSEE SUPPORTING OF THE ABOVE CONTENTION HAS ALSO BEEN FILED. 3. ON THE OTHER HAND, LD. DR VEHEMENTLY STRESSED TH AT THE ASSESSEE DID NOT INTIMATE THE CHANGE OF ADDRESS TO THE CIT(A). 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS. ADMITT EDLY, THE IMPUGNED ORDER OF THE CIT(A) IS AN EX-PARTE ORDER . THE ADDRESS OF THE ASSESSEE GOT CHANGED DUE TO WHICH NONE OF THE NOTIC ES OF HEARING ISSUED BY THE CIT(A) COULD BE SERVED UPON THE ASSESSEE. IT IS NOT THE CASE WHERE THE ASSESSEE AFTER CHANGE OF HIS ADDRESS REMAINED NEGLI GENT, RATHER, THE ASSESSEE DULY INFORMED THE CONCERNED INCOME TAX OFF ICER ABOUT THE CHANGE ITA NO. 425-CHD-2018 AND S.A. 51/CHD/2018- M/S SUSHMA BUILDTECH LTD, CHANDIGARH 3 OF ADDRESS. HENCE, THE ASSESSEE WAS UNDER BONAFIDE BELIEF THAT THE CHANGE OF ADDRESS WILL AUTOMATICALLY BE UPDATED IN THE SYS TEM OF THE INCOME TAX AUTHORITIES. IN VIEW OF THIS, WE DO NOT THINK IT IS A CASE OF INTENTIONAL NON-APPEARANCE BEFORE THE CIT(A). WE THEREFORE, SET ASIDE THE IMPUGNED ORDER OF THE CIT(A) AND RESTORE THE MATTER BACK TO THE FILE OF THE CIT(A) FOR DECISION AFRESH AFTER GIVING AN OPPORTUNITY OF HEARING TO THE ASSESSEE. NEEDLESS TO SAY THAT THE ASSESSEE WILL UPDATE HIS C HANGE OF ADDRESS IN THE RECORDS OF THE CIT(A) ALSO. 5. BEFORE PARTING IT IS PERTINENT TO MENTION HERE T HAT ALONGWITH THIS APPEAL, AN APPLICATION FOR STAY OF RECOVERY OF THE DEMAND (S.A.NO.51/CHD/2018) IS ALSO FIXED TODAY. SINCE WE HAVE DECIDED THE MAIN APPEAL OF THE ASSESSEE, HENCE, THE STAY APPLIC ATION OF THE ASSESSEE HAS BECOME INFRUCTUOUS AND THE SAME IS ACCORDINGLY DISM ISSED. HOWEVER, IT IS DIRECTED THAT TILL THE COMMENCEMENT OF HEARING BEF ORE THE CIT(A), THE DEPARTMENT WILL NOT MAKE ANY COERCIVE RECOVERY FROM THE ASSESSEE. THE ASSESSEE WILL BE AT LIBERTY TO MOVE AN APPLICATION BEFORE THE LD. CIT(A) FOR STAY OF DEMAND AS AND WHEN THE HEARING WILL COMMENC E. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TREATE D AS ALLOWED, WHEREAS, THE STAY APPLICATION OF THE ASSESSEE IS TR EATED AS DISMISSED. ORDER DICTATED AND PRONOUNCED IN THE OPEN COURT IMM EDIATELY ON COMPLETION OF HEARING. SD/- SD/- ( $ % & '# / ANNAPURNA GUPTA) () / ACCOUNTANT MEMBER ( / SANJAY GARG) / JUDICIAL MEMBER DATED : 16. 12.2018 .. ITA NO. 425-CHD-2018 AND S.A. 51/CHD/2018- M/S SUSHMA BUILDTECH LTD, CHANDIGARH 4 )- ' !./ 0/! / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. % 1! / CIT 4. % 1! ( )/ THE CIT(A) 5. /23 ! 4 , ' 4 , 56738 / DR, ITAT, CHANDIGARH 6. 37 9& / GUARD FILE )- % / BY ORDER, : $ / ASSISTANT REGISTRAR