Bengal Tiger Line (India) Private Limited, CHENNAI V. ACIT, CHENNAI

ITA 1452/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 77210 (ITAT-CHENNAI)
• Duration Of Justice: 9 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-04-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-03-2014
• Assessment Year: 2008-2009
• Appeal Filed On: 28-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GURU BHASHYAM
• Assessee Lawyers: B S NAGARAJ
• Keywords: Opportunity of being heard; Principle of natural justice; Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , !' # , $ % BEFORE SHRI A.MOHAN ALANKAMONY ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./I.T.A.NO. 1452/MDS/2013 ( / ASSESSMENT YEAR: 2008-09) M/S. BENGAL TIGER LINE (INDIA) PVT. LTD., M.A.CHIDAMBARAM BUILDING 3 RD FLOOR, 6, ESPLANADE, CHENNAI-600 108. VS ASSISTANT COMMISSIONER OF INCOME TAX, COMPANY CIRCLE-I(3) AAYAKAR BHAVAN, CHENNAI-34. PAN:AAACB1369A ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. B.S.NAGARAJ /RESPONDENT BY : MR. GURU BHASHYAM, JCIT / DATE OF HEARING : 26 TH MARCH, 2014 ! /DATE OF PRONOUNCEMENT : 10 TH APRIL, 2014 & / O R D E R PER CHALLA NAGENDRA PRASAD, JM: THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-IX, CHE NNAI DATED 21.03.2013 FOR THE ASSESSMENT YEAR 2008-09. 2. THE APPEAL OF THE ASSESSEE IS TIME BARRED BY TWO DAYS. THE ASSESSEE FILED AN AFFIDAVIT EXPLAINING REASONS FOR DELAY IN FILING OF APPEAL AND PRAYS FOR CONDONATION OF DE LAY. WE ITA NO.1452/MDS/2013 2 HAVE PERUSED THE REASONS AND ARE SATISFIED THAT TH ERE IS A REASONABLE CAUSE FOR THE DELAY IN FILING OF THE APP EAL. IN THE INTEREST OF JUSTICE, WE CONDONE THE DELAY OF TWO DA YS IN FILING OF THE APPEAL. THE PETITION FOR CONDONATION OF DELA Y IS THUS, ALLOWED AND THE APPEAL IS ADMITTED. 3. THE FIRST GROUND IN THE GROUNDS OF APPEAL OF THE ASSESSEE IS GENERAL IN NATURE. GROUND NO.2 RAISED BY THE ASSESSEE IS THAT COMMISSIONER OF INCOME TAX (APPEA LS) ERRED IN PASSING THE ORDER WITHOUT PROVIDING ADEQUA TE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASS ESSEE ALSO IN ITS GROUNDS SUBMITS THAT ASSESSEE HAS NEITH ER MADE ANY WRITTEN SUBMISSIONS NOR ARGUED APPEAL FILED BEF ORE COMMISSIONER OF INCOME TAX (APPEALS) AND HENCE THE IMPUGNED ORDER IS IN GROSS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 4. AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE SUBMI TS THAT ON 25.1.2012 APPEAL WAS FILED BEFORE THE COMMI SSIONER OF INCOME TAX (APPEALS) AND ON 31.12.2012 APPEAL W AS ITA NO.1452/MDS/2013 3 POSTED FOR HEARING AND ON WHICH DATE MR. G.S.D. BAB U, AUTHORIZED REPRESENTATIVE REQUESTED FOR ADJOURNMENT SINCE HE WAS TRAVELLING ON 31.12.2012. WHEN THE CASE WAS POSTED FOR HEARING ON 21.2.2013, AUTHORIZED REPRESENTATIVE REQUESTED FOR ADJOURNMENT ORALLY AND THE CASE WAS R EPOSTED FOR HEARING ON 6.3.2013. ON 6.3.2013, AUTHORIZED REPRESENTATIVE APPEARED BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AND THE COMMISSIONER INDICATED THAT H E WAS PRE-OCCUPIED WITH INTERNAL MEETING AND APPEALS WILL BE HEARD AT LATER DATE WHICH WOULD BE COMMUNICATED. HOWEVER, ON 21.3.2013 COMMISSIONER OF INCOME TAX (APPEALS) PASS ED EX- PARTE ORDER OBSERVING THAT APPEAL WAS HEARD AND ARG UMENTS OF THE AUTHORIZED REPRESENTATIVE, ASSESSMENT ORDER AND GROUNDS OF APPEAL OF THE ASSESSEE WERE CONSIDERED. AUTHORIZED REPRESENTATIVE SUBMITS THAT THE FACT REM AINS THAT NO SUCH ARGUMENT WAS PLACED BEFORE THE COMMISSIONER OF INCOME TAX (APPEALS) AS NO SUFFICIENT OPPORTUNITY W AS GIVEN TO PUT FORTH THE SUBMISSIONS OF THE ASSESSEE. THERE FORE, COMMISSIONER OF INCOME TAX (APPEALS) HAS NOT FOLLOW ED THE PRINCIPLES OF NATURAL JUSTICE IN PASSING THE IMPUGN ED ORDER. ITA NO.1452/MDS/2013 4 AUTHORIZED REPRESENTATIVE PRAYS THAT APPEAL MAY BE RESTORED TO THE FILE OF THE COMMISSIONER OF INCOME TAX (APPE ALS) FOR DECIDING THE APPEAL ON MERITS AFTER PROVIDING SUFFI CIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. DEPARTMENTAL REPRESENTATIVE SUBMITS THAT COMMISSIONER OF INCOME TAX (APPEALS) RECORDED THAT MR. G.D.S. BABU APPEARED AND HAS FILED POWER OF ATTORNE Y, THE CASE WAS DISCUSSED WITH HIM AND COMMISSIONER CONSID ERED THE ASSESSMENT ORDER, GROUNDS OF APPEAL AND ARGUMEN TS OF THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE AND D ECIDED THE APPEAL ON MERITS. THEREFORE, HE SUBMITS THAT TH ERE IS NO VIOLATION OF PRINCIPLES OF NATURAL JUSTICE IN PASSI NG THE IMPUGNED ORDER AS SUFFICIENT OPPORTUNITY WAS GIVEN TO THE ASSESSEE. 6. IN REPLY, AUTHORIZED REPRESENTATIVE SUBMITS THAT IMPUGNED ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) WAS PASSED EX-PARTE AND THE FINDING IN T HE ORDER THAT APPEAL WAS DISCUSSED WITH THE AUTHORIZED ITA NO.1452/MDS/2013 5 REPRESENTATIVE IS INCORRECT. THE ASSESSEE HAS NEVER SUBMITTED ANY WRITTEN SUBMISSIONS BEFORE COMMISSION ER OF INCOME TAX (APPEALS) NOR THE AUTHORIZED REPRESENTAT IVE WAS HEARD BY THE COMMISSIONER. AUTHORIZED REPRESENTATI VE FURTHER SUBMITS THAT ASSESSEE HAD IN FACT FILED A PETITION ON 10.5.2013 REQUESTING THE COMMISSIONER OF INCOME TAX (APPEALS) TO RECALL THE IMPUGNED ORDER PASSED BY HI M AS NO OPPORTUNITY WAS GIVEN TO THE ASSESSEE. A COPY OF TH E PETITION IS PLACED BEFORE US. 7. HEARD BOTH SIDES. PERUSED ORDERS OF LOWER AUTHOR ITIES. HAVING GONE THROUGH THE IMPUGNED ORDER, WE FIND THA T THERE IS NO MENTION ABOUT DATES OF HEARING RECORDED IN THE O RDER. ON GOING THROUGH THE PETITION OF THE ASSESSEE FOR RECA LLING THE IMPUGNED ORDER FILED BEFORE THE COMMISSIONER OF INC OME TAX (APPEALS), SUBMISSIONS OF THE ASSESSEE AND THE ORDE R OF THE COMMISSIONER, WE FIND THAT NO SUFFICIENT OPPORTUNIT Y OF BEING HEARD WAS GRANTED TO THE ASSESSEE. IN THE CIRCUMSTA NCES, WE RESTORE THIS APPEAL TO THE FILE OF THE COMMISSIONER OF INCOME TAX (APPEALS) AND THE COMMISSIONER SHALL DISPOSE OF THE ITA NO.1452/MDS/2013 6 APPEAL ON MERITS AFTER PROVIDING SUFFICIENT OPPORTU NITY TO THE ASSESSEE. 8. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THURSDAY, TH E 10 TH DAY OF APRIL, 2014 AT CHENNAI. SD/- SD/- ( A.MOHAN ALANKAMONY ) ( CHALLA NAGEN DRA PRASAD ) ' . #!$ # ( %& '() * ) ACCOUNTANT MEMBER / *+ JUDICIAL MEMBER/ ( *+ %( /CHENNAI, ,* /DATED, 10 TH APRIL, 2014 SOMU *- ./0/ /COPY TO: 1. APPELLANT 2. /RESPONDENT 3. 123 /CIT(A) 4. 1 /CIT 5. /4' 5 /DR 6. '67 /GF .