Gujarat Psyllium Corporation , Patan V. The Income Tax Officer, Ward-1, Mehsana

ITA 1494/AHD/2014

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8922 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-03-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 15-03-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 15-05-2014
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Set aside
• Section: 32; 147; 131; 68; 246; 69; 145; 27; 148; 54; 37; 6; 56; 263; 63; 132; 12; 28; 144; 10; 90; 154; 2; 11; 15; 271(1)(b); 139; 92

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH, AHMEDABAD , , BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER AND SHRI MAHAVIR PRASAD, JUDICIAL MEMBER ./ I.T.A. NO.1494/AHD/2014 ( / ASSESSMENT YEAR : 2010-11) GUJARAT PSYLLIUM CORPORATION C/O.D.P. THAKKER & CO. SHREEKUNJ STATION ROAD, PATAN (N.G.) / VS. THE INCOME-TAX OFFICER WARD-1, INCOME-TAX OFFICE MEHSANA # ./ ./ PAN/GIR NO. : AACFG 9455 H ( #& / APPELLANT ) .. ( '#& / RESPONDENT ) #&( / APPELLANT BY : MS.URVASHI SODHAN, A.R. '#& )( / RESPONDENT BY : MR. JAMES KURIAN, SR.DR *+ ), / DATE OF HEARING 15/03/2017 -./0 ), / DATE OF PRONOUNCEMENT 20/ 03 /2017 / O R D E R PER PRADIP KUMAR KEDIA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST TH E ORDER OF THE COMMISSIONER OF INCOME TAX-GANDHINAGAR [CIT(A) IN S HORT] DATED 24/03/2014 FOR THE ASSESSMENT YEAR (AY) 2010-11. ITA NO.1494/AHD /2014 GUJARAT PSYLLIUM CORPORATION VS. ITO ASST.YEAR 2010-11 - 2 - 2. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS O F APPEAL:- 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DEC IDING THE APPEAL EX-PARTE ON THE GROUND THAT APPELLANT HAS NOT BOTHE RED TO ATTEND THE APPEAL PROCEEDINGS. 2. THE LD.CIT(A) ON THE STRENGTH OF EVIDENCE ON RECORD IN ABSENCE OF PROPER SERVICE OF NOTICE OF HEARING OUGHT NOT TO HA VE DECIDED THE APPEAL EX-PARTE. 3. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONF IRMING THE ADDITION OF RS.91,26,621/- BEING ADDITION MADE ON T HE GROUND OF EXCESS PAYMENT OF INTEREST. 4. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONF IRMING THE ADDITION OF RS.85,000/- BEING ESTIMATED ACCRUED INT EREST ON F.D. 5. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN CONF IRMING THE ADDITION OF RS.2,29,275/- BEING PENAL INTEREST. 3. AT THE THRESHOLD, IT CAN BE SEEN FROM THE GROUND S OF APPEAL THAT THE ASSESSEE HAS INTER-ALIA ASSAILED THE ORDER OF THE CIT(A) ON THE PREMISE THAT THE ORDER HAS BEEN PASSED EX-PARTE WITHOUT GIVING ADEQUATE OPPORTUNITY OF BEING HEARD. IT IS THE CONTENTION O F THE LD.AR ON BEHALF OF THE ASSESSEE THAT BY PASSING SUCH ORDER EX-PARTE CONFIRMING SUBSTANTIAL ADDITIONS, THE PRINCIPLES OF NATURAL JU STICE ARE SERIOUSLY UNDERMINED. THE LD.AR FURTHER POINTED OUT THAT THE CIT(A) HAS SIMPLY REITERATED THE FINDINGS OF THE ASSESSING OFFICER (A O) ON VARIOUS ISSUES AND HAS CONFIRMED THE ACTION OF THE AO WITHOUT GIVI NG HIS INDEPENDENT FINDINGS ON THE ISSUES INVOLVED. THE LD.AR ACCORDI NGLY PLEADED THAT THE MATTER SHOULD BE RESTORED TO THE FILE OF CIT(A) FOR DE NOVO ADJUDICATION ITA NO.1494/AHD /2014 GUJARAT PSYLLIUM CORPORATION VS. ITO ASST.YEAR 2010-11 - 3 - IN ACCORDANCE WITH LAW TO ENABLE THE ASSESSEE TO A VAIL THE EFFECTIVE OPPORTUNITY TO DEFENDS ITS CASE. 4. THE LD.DR, ON THE OTHER HAND, CONTENDED THAT NO FAULT CAN BE FOUND WITH THE ACTION OF CIT(A) IN PASSING THE EX-PARTE ORDER AS THE ASSESSEE HAS CONTINUED TO REMAIN DEFIANT TO STATUTO RY NOTICES ISSUED BY THE CIT(A) TO ENABLE THE ASSESSEE TO REPRESENT THE MATT ER BEFORE IT. 4. WE HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIO NS. WE NOTE THAT THE CIT(A) HAS ALLEGED THAT THE ASSESSEE HAS BEEN INDIFFERENT IN ATTENDING THE APPELLATE PROCEEDINGS BEFORE HIM IN SPITE OF GR ANTING SUFFICIENT OPPORTUNITY. HE, ACCORDINGLY, PROCEEDED TO DISPOS E OFF APPEAL EX-PARTE . HOWEVER, IN THE SAME VAIN, WE NOTE THE PLEA RAISED ON BEHALF OF THE ASSESSEE THAT IT IS NOT DISCERNIBLE FROM THE ORDER OF THE CIT(A) AS TO WHETHER ADEQUATE OPPORTUNITY WAS GRANTED TO THE ASS ESSEE. SECONDLY, WE ALSO PAY HEED TO THE FACT OF ABSENCE OF ANY FRE SH APPRECIATION OF FACTS BY THE CIT(A) IN EXERCISE OF ITS APPELLATE AND CO-T ERMINUS POWERS. UNDER THE CIRCUMSTANCES, ON LIBERAL CONSIDERATIONS, WE D EEM IT EXPEDIENT THAT THE MATTER IS REMANDED BACK TO THE FILE OF CIT(A) F OR RE-ADJUDICATION OF THE APPEAL OF THE ASSESSEE DE NOVO IN ACCORDANCE WITH LAW AFTER GIVING PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THIS WILL ENSURE ATTAINMENT OF FAIRNESS IN THE PROCEEDINGS. THE ASS ESSEE IS DIRECTED TO DILIGENTLY ATTEND AND FULLY CO-OPERATE IN THE PROCE EDINGS BEFORE THE ITA NO.1494/AHD /2014 GUJARAT PSYLLIUM CORPORATION VS. ITO ASST.YEAR 2010-11 - 4 - CIT(A). ANY FURTHER DELINQUENCY IN THIS REGARD SHA LL BE VIEWED ADVERSELY. IN TERMS OF ABOVE, ANOTHER OPPORTUNIT Y IS GRANTED TO THE ASSESSEE AND THE APPEAL IS SET ASIDE TO THE FILE OF THE CIT(A) FOR FRESH ADJUDICATION. THE MATTER BEING OLD, THE CIT(A) MAY ENDEAVOUR TO DISPOSE OF THE APPEAL AT EARLIEST POINT OF TIME, PR EFERABLY WITHIN 4 MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. THIS ORDER PRONOUNCED IN OPEN COURT ON 20/ 03 /2017 SD/- SD/- ( ) ( ) ( MAHAVIR PRASAD ) ( PRADIP KUMAR KEDIA ) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD; DATED 20/ 03 /2017 4..*,.*../ T.C. NAIR, SR. PS !'#$#! / COPY OF THE ORDER FORWARDED TO : 1. #& / THE APPELLANT 2. '#& / THE RESPONDENT. 3. 567, 8, / CONCERNED CIT 4. 8, ( ) / THE CIT(A)-GANDHINAGAR 5. 9:;,*67 , 67 0 , 5 / DR, ITAT, AHMEDABAD 6. ;<+ / GUARD FILE. / BY ORDER, '9,, //TRUE COPY// / ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD