Medicross Pharma Chem Ltd., Uttar Pradesh V. ACIT, Meerut

ITA 1482/DEL/2014

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0128 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 3 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-06-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC 1
• Next Hearing Date: 29-06-2015
• Assessment Year: 2007-2008
• Appeal Filed On: 12-03-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: GAGAN SOOD
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 142(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: SMC NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER I.T.A .NO. - 1482 /DEL/201 4 (ASSESSMENT YEAR - 200 7 - 0 8 ) MEDICROSS PHARMA CHEM.LTD., 90 - JAMUN MOHALLA, LAL KURTI, MEERUT CANTT., UTTAR PRADESH PAN - AAACM9391B (APPELLANT) VS ACIT, CIRCLE - 1, MEERUT (RESPONDENT ) APPELLANT BY NONE RESPONDENT BY SH.GAGAN SOOD, SR.DR ORDER BY THE PRESENT APPEAL FILED BY THE ASSESSEE, THE CORRECTNESS OF THE ORDER DATED 28.11.2013 OF CIT(A), MEERUT PERTAINING TO 2007 - 08 ASSESSMENT YEAR HAS BEEN ASSAILED. NO ONE WAS PRESENT ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING. HOWEVER, CO NSIDERING THE MATERIAL AVAILABLE ON RECORD, IT WAS CONSIDERED APPROPRIATE TO PROCEED WITH THE PRESENT APPEAL EX - PARTE QUA THE ASSESSEE S APPE LLANT ON MERIT AFTER HEARING THE LD. SR.DR. 2. A PERUSAL OF THE RECORD SHOWS THAT THE ASSESSEE COMPANY WAS ENGAGED IN THE BUSINESS OF MARKETING AND TRADING OF PHARMACEUTICALS AND DRUGS DECLARED A NIL INCOME WHEREIN AFTER ISSUANCE OF NOTICE U/S 143(2) AND 142(1) ETC. CERTAIN ADDITIONS WERE MADE. THESE ADDITIONS WERE CHALLENGED IN APPEAL BEFORE THE CIT(A) WHO CONSIDER ING THE FACT THAT VARIOUS OPPORTUNITIES WERE GIVEN TO THE ASSESSEE IN RESPONSE TO WHICH NO COMPLIANCE WAS MADE. I N VIEW OF THE SAME, THE APPEAL O F THE ASSESSEE WAS DISMISSED BY AN EX - PARTE ORDER DATED 28.11.2013 HOLDING THAT THE ASSESSEE HAS NOT BROUGHT ANY MATERIAL EITHER TO PROVE THE CREDIT - WORTHINESS OF THE PARTY OR TO DEMONSTRATE DATE OF HEARING 29 .0 6 .2015 DATE OF PRONOUNCEMENT 30 .06.2015 I.T.A .NO. - 1482/DEL/2014 PAGE 2 OF 3 THAT THE DEPOSIT HAD BEEN MADE OUT OF INTEREST FREE FUNDS. THE OTHER GROUNDS WERE HELD TO BE CONSEQUENTIAL. 3. AGGRIEVED BY THIS, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBU NAL. 4 . A PERUSAL OF THE IMPUGNED ORDER SHOWS THAT ADMITTEDLY THE ASSESSEE DESPITE ISSUANCE OF NOTICE REMAINED UNREPRESENTED. IN THE ABSENCE OF ANY SUBMISSIONS ON THE PART OF THE ASSESSEE THE ADDITIONS MADE IN THE ASSESSMENT ORDER HAVE BEEN UPHELD. IN TH E AFORE - MENTIONED FACTS WHERE THE ASSESSEE IS STILL AGGRIEVED IT IS CONSIDERED APPROPRIATE TO ADDRESS THE SAME BY PROVIDING AN OPPORTUNITY OF BEING HEARD. IT IS HOPED THAT THE OPPORTUNITY SO PROVIDED IS UTILIZED IN GOOD FAITH BY MAKING REPRESENTATION BEFO RE THE APPELLATE FORUM. THE DECISION SO TAKEN IS GUIDED BY THE FACT THAT RIGHT TO BE HEARD IS AN IMPORTANT RIGHT TO WHICH A PARTY WHO IS FACED WITH AN ADVERSE VIEW IS ENTITLED TO . AUDI ALTERAM PARTEM IS ONE OF THE MOST FAMOUS AND CELEBRATED RULE OF NATURAL JUSTICE. THE PRINCIPLES OF NATURAL JUSTICE ARE THOSE WHICH HAVE BEEN LAID OUT BY THE COURTS AS BEING THE MINIMUM PROTECTION OF THE RIGHTS OF AN INDIVIDUAL AGAINST THE ARBITRARY PROCEDURE THAT MAY B E ADOPTED BY A JUDICIAL, QUASI - JUDICIAL AND ADMINISTRATIVE AUTHORITY WHILE MAKING AN ORDER AFFECTING THOSE RIGHTS. A CAREFUL PERUSAL OF THE CONSISTENT JUDGEMENTS OF THE APEX COURT WOULD SHOW THAT IT HAS CONSISTENTLY BEEN HELD THAT THE RULES OF NATURAL JUS TICE ARE NOT EMBODIED RULES AND THE SAID PHRASE IS NOT AND CANNOT BE CAPABLE OF A PRECISE DEFINITION. THE UNDERLYING PRINCIPLE OF NATURAL JUSTICE EVOLVED UNDER THE COMMON LAW IS TO CHECK ARBITRARY EXERCISE OF POWER BY THE STATE OR ITS FUNCTIONARIES. ACCO RDINGLY, THE PRINCIPLE BY ITS VERY NATURE IMPLIES THE DUTY TO ACT FAIRLY I.E. FAIR PLAY IN ACTION MUST BE EVIDENT AT EVERY STAGE. FAIR PLAY DEMANDS THAT NOBODY SHALL BE CONDEMNED UNHEARD. 4 . 1 . IN THE CELEBRATED JUDGEMENT OF THE APEX COURT IN THE CASE OF A .K.KRAIPAK VS - UNION OF INDIA (1969) 2 SCC 262, IT IS OBSERVED THAT THE AIM OF RULES OF NATURAL JUSTICE IS TO SECURE JUSTICE OR TO PUT IT NEGATIVELY TO PREVENT MISCARRIAGE OF JUSTICE. THE SAID RULES ARE MEANS TO AN END AND NOT AN END IN THEMSELVES AND TH OUGH IT IS NOT POSSIBLE TO MAKE AN EXHAUSTIVE CATALOGUE OF SUCH RULES HOWEVER IT CAN BE READILY SAID THAT THERE ARE TWO BASIC MAXIMS OF NATURAL JUSTICE NAMELY AUDI ALTERAM PARTEM AND NEMO I.T.A .NO. - 1482/DEL/2014 PAGE 3 OF 3 JUDEX IN RE SUA . IN THE PRESENT FACTS OF THE CASE WE ARE CONCER NED WITH THE MAXIM AUDI ALTERM PARTEM WHICH AGAIN MAY HAVE MANY FACETS TWO OF THEM (A) NOTICE OF THE CASE TO BE MET; AND (B) OPPORTUNITY TO EXPLAIN. THEIR LORDSHIPS HAVE CAUTIONED THAT THESE RULES CANNOT BE SACRIFICED AT THE ALTAR OF THE ADMINISTRATIVE CONVENIENCE OR CELEBRITY. 4.2. ACCORDINGLY IN VIEW OF THE ABOVE, THE IMPUGNED ORDER IS SET ASIDE AND THE ISSUE IS RESTORED BACK TO THE FILE OF THE CIT (A) , MEERUT WITH THE DIRECTION TO DECIDE THE SAME IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 5 . IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 3 0 T H OF JUNE , 2015. SD / - (DIVA SINGH) JUDICIAL MEMBER DATED: 3 0 /06 /2015 * AMIT KUMAR * COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI