MAHALAKSHMI ESTATES P. LTD., CHENNAI V. ACIT CENTRAL CIRCLE 3(3), CHENNAI

ITA 1521/CHNY/2019

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 1066 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-12-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2014-2015
• Appeal Filed On: 14-05-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: J PAVITHRAN KUMARJOINT
• Assessee Lawyers: N ARJUN RAJ
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 143(3); 14A

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH: CHENNAI . . . , ! , & BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI RAMIT KOCHAR, ACCOUNTANT MEMBER ./ ITA NO.1521/CHNY/2019 ' ' /ASSESSMENT YEAR: 2012-13 M/S MAHALAKSHMI ESTATES PRIVATE LIMITED NO. 138, USMAN ROAD T. NAGAR, CHENNAI-600017 [PAN: AAACM5368E] V . THE ASSISTANT COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE 3(3), CHENNAI-600034. ( * /APPELLANT) ( +,* /RESPONDENT) * - / APPELLANT BY : MR.N.ARJUN RAJ ADVOCATE +,* - /RESPONDENT BY : MR.J.PAVITHRAN KUMAR,JOINT CIT, D.R - /DATE OF HEARING : 19.12.2019 - /DATE OF PRONOUNCEMENT : 19.12.2019 / O R D E R PER RAMIT KOCHAR, ACCOUNTANT MEMBER : THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE INC OME TAX APPELLATE TRIBUNAL, CHENNAI BENCHES, CHENNAI (HEREINAFTER CAL LED THE TRIBUNAL) CHALLENGING THE APPELLATE ORDER PASSED BY LEARNED C OMMISSIONER OF INCOME TAX (APPEALS)-19 CHENNAI ( HEREINAFTER CALLED THE CIT( A) ), IN ITA NO.129/17-18 DATED 28.02.2019 FOR ASSESSMENT YEAR (AY) 2014-15. THE APPELLATE PROCEEDINGS HAD ARISEN BEFORE LEARNED CIT(A) FROM ASSESSMENT OR DER DATED 23.12.2016 PASSED BY LEARNED ASSESSING OFFICER(HEREINAFTER CAL LED THE AO) U/S 143(3) OF THE INCOME-TAX ACT 1961(HEREINAFTER CALLED THE ACT ). 2. BRIEFLY STATED THE FACTS OF THE CASE ARE THAT T HE ASSESSEE HAS FILED AN APPEAL BEFORE LD.CIT(A), WHICH WAS ADJUDICATED BY L D.CIT(A) VIDE APPELLATE ORDER DATED 28.02.2019. THE LD.CIT(A) HAS ISSUED TW O NOTICES TO THE ASSESSEE, ITA NO.1521/CHNY/2019 :- 2 -: BUT HOWEVER, THE ASSESSEE DID NOT APPEAR BEFORE LD .CIT(A) NOR ANY ADJOURNMENT WAS SOUGHT. THE LD.CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE VIDE APPELLATE ORDER DATED 28.02.2019 MAINLY FOR NON-PROSECUTION O F ITS APPEAL BY ASSESSEE, BUT HOWEVER, WHILE PASSING APPELLATE ORDER THE LD.CIT(A ) SIMPLY UPHELD ASSESSMENT ORDER PASSED BY THE AO WITHOUT INDEPENDENTLY DISCUS SING ISSUES/GROUNDS ON MERITS RAISED BY ASSESSEE IN ITS FIRST APPEAL FILED WITH LEARNED CIT(A), AS IS REQUIRED UNDER THE PROVISIONS OF SEC.250(6) OF THE 1961 ACT. 3. AGGRIEVED BY AN APPELLATE ORDER 22.11.2017 PASS ED BY LEARNED CIT(A), THE ASSESSEE HAS NOW FILED THIS APPEAL BEFORE TRIBUNAL AND ARGUMENTS ARE ADVANCED BY BOTH THE RIVAL PARTIES BEFORE THE BENCH. THE LD .COUNSEL FOR THE ASSESSEE AT THE OUTSET SUBMITTED THAT THE LEARNED CIT(A) DISMIS SED THE APPEAL EX-PARTE WITHOUT DISCUSSING ISSUES ON MERITS SIMPLY FOR NON PROSECUTION. ON BEING ASKED BY THE BENCH, IT WAS ADMITTED BY LEARNED COUNSEL FO R THE ASSESSEE THAT THE ASSESSEE DID NOT APPEAR BEFORE LEARNED CIT(A) WHEN THE APPEAL WAS CALLED FOR HEARING BEFORE THE LEARNED CIT(A) NOR ADJOURNMENT A PPLICATION WAS FILED . IT WAS SUBMITTED BY LEARNED COUNSEL FOR THE ASSESSEE THAT LEARNED CIT(A) SIMPLY UPHELD ASSESSMENT ORDER PASSED BY THE AO AND NO INDEPENDEN T REASONS WERE GIVEN BY LEARNED CIT(A) WHILE UPHOLDING ADDITIONS AS WERE MA DE BY THE AO IN ITS ASSESSMENT ORDER. 4. THE LD.DR SUBMITTED THAT ASSESSEE DID NOT APPEA R BEFORE LEARNED CIT(A) DESPITE NOTICES BEING SENT TO ASSESSEE ON TWO OCCAS IONS NOR ANY APPLICATION FOR ADJOURNMENT WAS FILED. THE LEARNED CIT(A) CLEARLY S PECIFIED IN ITS LAST NOTICE THAT IT IS LAST AND FINAL OPPORTUNITY GRANTED TO THE ASS ESSEE. ITA NO.1521/CHNY/2019 :- 3 -: 5. WE HAVE CONSIDERED RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. WE HAVE OBSERVED THAT THE ASSESSEE IS ENGAGED IN AGRIC ULTURAL AND SPICING FARMING . THE ADDITIONS WERE MADE BY THE AO TO THE TUNE OF RS . 1,15,322/- IN THE HANDS OF ASSESSEE ON ACCOUNT OF DISALLOWANCES U/S 14A OF THE 1961 ACT. THE ASSESSEE CHALLENGED AND ASSAILED THE SAID ASSESSMENT ORDER PASSED BY AO U/S 143(3) OF THE 1961 ACT BY FILING FIRST APPEAL BEFORE LEARNED CIT(A). IT IS OBSERVED THAT THE ASSESSEE DID NOT APPEAR BEFORE LD.CIT(A) DESPITE TW O OPPORTUNITIES GRANTED BY LEARNED CIT(A) NOR SOUGHT ADJOURNMENTS , BUT , HOW EVER, LD.CIT(A) ON ITS PART PASSED AN APPELLATE ORDER WITHOUT DISCUSSING ISSUES IN THE APPEAL FILED BY ASSESSEE INDEPENDENTLY ON MERITS AND HAS , INTER-AL IA, DISMISSED APPEAL OF THE ASSESSEE FOR NON-PROSECUTION AND SIMPLY UPHELD ADD ITIONS MADE IN ASSESSMENT ORDER PASSED BY THE AO WITHOUT INDEPENDENTLY DISCU SSING ALL THE ISSUES/GROUNDS IN APPEAL FILED BY ASSESSEE ON MERITS BASED ON MATE RIAL ON RECORD, AS IS REQUIRED U/S 250(6) OF THE 1961 ACT. IN OUR CONSIDERED VIEW , THE MATTER NEEDS TO BE RESTORED TO FILE OF LD.CIT(A) FOR FRESH/DENOVO ADJU DICATION ON MERITS IN ACCORDANCE WITH THE LAW. THE ASSESSEE ON ITS PART I S ALSO EQUALLY RESPONSIBLE FOR ITS WOES AS IT DID NOT CO-OPERATED WITH LEARNED CIT (A) IN FIRST ROUND OF LITIGATION. WE HEREBY DIRECT ASSESSEE TO APPEAR BEFORE LD.CIT(A ) AND SUBMIT ALL NECESSARY EVIDENCES, EXPLANATIONS ETC., IN SUPPORT OF ITS CON TENTION , WHEN THE APPEAL COMES FOR HEARING BEFORE LD.CIT(A) IN DENOVO APPELL ATE PROCEEDINGS IN SECOND ROUND OF LITIGATION. IT IS MADE CLEAR THAT IF THE A SSESSEE STILL DID NOT COME FORWARD AND CO-OPERATE IN DENOVO APPELLATE PROCEEDINGS BEF ORE LEARNED CIT(A), THEN LD.CIT(A) SHALL BE AT LIBERTY TO DECIDE THE ISSUES ON MERITS IN ACCORDANCE WITH LAW, BASED ON MATERIAL ON RECORD. THE LD.CIT(A) IS DIRECTED TO DENOVO ADJUDICATE APPEAL FILED BY ASSESSEE ON MERITS IN ACCORDANCE WI TH LAW BY PASSING A SPEAKING AND REASONED ORDER IN EXERCISE OF ITS POWERS AS ARE VESTED U/S 251(1)(A) OF THE ITA NO.1521/CHNY/2019 :- 4 -: 1961 ACT, WHICH STIPULATE THAT LEARNED CIT(A) CAN C ONFIRM, REDUCE , ENHANCE OR ANNUL THE ASSESSMENT. NEEDLESS TO SAY THAT LEARNED CIT(A) SHALL PROVIDE PROPER AND ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSE SSEE IN ACCORDANCE WITH PRINCIPLES OF NATURAL JUSTICE IN ACCORDANCE WITH LA W, IN DENOVO APPELLATE PROCEEDINGS. THUS, THE APPEAL OF THE ASSESSEE STA NDS ALLOWED FOR STATISTICAL PURPOSES. WE ORDER ACCORDINGLY. 6. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IN ITA NO. 1521/CHNY/2019 FOR AY: 2014-15 IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED IN OPEN COURT ON THIS 19 TH DECEMBER, 2019, IN CHENNAI. SD/- SD/- ( . . . ) (N.R.S. GANESAN) /JUDICIAL MEMBER ( ! ) (RAMIT KOCHAR) /ACCOUNTANT MEMBER /CHENNAI, 1 /DATED: 19 TH DECEMBER, 2019. KSS - +!2 32 /COPY TO: 1. * /APPELLANT 4. 4 /CIT 2. +,* /RESPONDENT 5. 2 + /DR 3. 4 ( ) /CIT(A) 6. ' /GF