Chief Engineer (Central Zone), JABALPUR V. Deputy Commissioner of Income Tax (TDS), JABALPUR

ITA 157/JAB/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 8105 (ITAT-JABALPUR)
• Duration Of Justice: 8 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-04-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 24-07-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P D CHOUGALE
• Assessee Lawyers: ABHIJEET SHRIVASTAVA
• Keywords: Principle of natural justice; TDS
• Section: 154

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL JABALPUR BENCH , JABALPUR BEFORE SHRI A. D. JAIN, VICE PRESIDENT AND SHRI T. S. KAPOOR, ACCOUNTANT MEMBER ITA NO. 157/JAB/2018 ASSESSMENT YEAR: 2013 - 14 CHIEF ENGINEER (CENTRAL ZONE) PWD, CIVIL LINE JABALPUR V. D CIT (TDS) JABALPUR T AN /PAN : JBPCO1304C (APP ELL ANT) (RESPONDENT) APPELLANT BY: SHRI ABHIJEET SHRIVASTAVA, ADVOCATE RESPONDENT BY: SHRI P. D. CHOUGALE, D.R. DATE OF HEARING: 04 04 201 9 DATE OF PRONOUNCEMENT: 04 04 201 9 O R D E R PER A. D. JAIN, V .P . : THIS IS ASSESSEES APPEAL AGAINST THE ORDER OF THE LD. CIT(A) - 1, JABALPUR, DATED 27/6/2018 FOR ASSESSMENT YEAR 20 13 - 14 , TAKING THE FOLLOWING GROUNDS: 1. THE LEARNED C.I.T. (APPEAL) HAS NOT APPRECIATED THAT ORDER HAS BEEN PASS BY DCIT CIRCLE 1(1) BY V IOLATING RULES OF NATURAL JUSTICE. 2. THE LEARNED C.I.T. (APPEAL) HAS NOT APPRECIATED THAT NO NOTICE OF HEARING WAS RECEIVED BY THE APPLICANT AND DECIDED THE CASE EX PARTY WHICH IS BY VIOLATING RULES OF NATURAL JUSTICE . 3. THE LEARNED COMMISSIONER OF INCOM E TAX (APPEAL) FAILED TO APPRECIATE THE APPLICATION U/S 154 WAS DISMISSED ON TECHNICAL GROUNDS WITHOUT GOING INTO THE MERITS OF THE CASE . ITA NO.157/JAB/2018 PAGE 2 OF 3 4. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) FAILED TO APPRECIATE THE DEMAND OF TDS AS S HORT PAID, AMOUNT DEDUC TED AND NOT PAID AND LEVY OF INTEREST IS ARBITRARY AND UNJUSTIFIED. 5. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN LAW IN IGNORING THE CBDT CIRCULAR NO 007 DT 14 - 03 - 2015 WHERE IT IS DIRECTED THAT NO LATE FEE CANNOT LEVIED TO G OVERNMENT . 6. THE LD. CIT(A) ERRED IN LAW IN NOT APPRECIATING THAT LEVY OF INTEREST IS UNJUSTIFIED. 2 . BY VIRTUE OF THE IMPUGNED ORDER, THE LD. CIT(A) HAS DISMISSED THE ASSESSEES APPEAL FOR NON - PROSECUTION . WE TAKE NOTE THAT T HE LD. CIT(A) HAD ISSUED ONLY ONE NOTICE, DATED 1 1/6/2018 , BUT NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE THE LD. CIT(A) AND THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE EX - PARTE QUA THE ASSESSEE. SUCH SERVICE OF NOTICES HAS, HOWEVER, BEEN DISPUTED BY THE ASSESSEE. 3 . HEARD. I FIND THAT THE CI T(A) HAS DISMISSED THE APPEAL WITHOUT PROVIDING PROPER OPPORTUNITY TO THE ASSESSEE. MOREOVER, HE HAS NOT DECIDED THE APPEAL AFTER DISCUSSING IN DETAIL, HIS REASONS FOR AGREEING WITH THE ASSESSMENT ORDER. THE ASSESSEE HAS TAKEN A SPECIFIC GROUND WITH REG ARD TO NON - SERVICE OF NOTICE ON THE ASSESSEE. AS SUCH, ANOTHER OPPORTUNITY OF HEARING REQUIRES TO BE GIVEN TO THE ASSESSEE TO REPRESENT HIS CASE FULLY BEFORE THE LD. CIT(A). EVEN OTHERWISE, IT IS TRITE [S. VELU PALANDAR VS. DCIT 83 ITR 683 (MAD.)] AND I NCUMBENT ON THE LD CIT(A) TO DECIDE AN APPEAL ON MERIT EVEN IN THE ABSENCE OF ANY REPRESENTATION BEFORE THEM. 4 . IN VIEW OF THE ABOVE, THE MATTER IS REMITTED TO THE FILE OF THE LD. CIT(A) TO BE DECIDED AFRESH ON MERIT, IN ACCORDANCE WITH LAW, ON AFFORDING DUE AND ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. THE ASSESSEE, NO DOUBT, SHALL COOPERATE IN THE FRESH PROCEEDINGS BEFORE THE ITA NO.157/JAB/2018 PAGE 3 OF 3 LD. CIT(A). ALL PLEAS AVAILABLE UNDER THE LAW SHALL REMAIN SO AVAILABLE TO THE ASSESSEE. ORDERED ACCORDINGLY. 5 . IN THE RESULT, FOR STATISTICAL PURPOSES, THE APPEAL IS TREATED AS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 04 / 0 4 /201 9 . SD/ - SD/ - [ T. S. KAPOOR ] [ A. D. JAIN ] ACCOUNTANT MEMBER VICE PRESIDENT DATED: 04 /0 4 / 201 9 JJ: 0404 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR