Sri. M. Nagesh, Bangalore V. ITO, Bangalore

ITA 1587/BANG/2014

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 0350 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 6 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 01-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 10-12-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: RAGHAVENDRA CHAKRABORTHY
• Keywords: Principle of natural justice
• Section: 142(1)

Judgement Text

ITA.1587/BANG/2014 PAGE - 1 IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCH 'B', BANGALORE SHRI. ABRAHAM P. GEORGE, ACCOUNTANT MEMBER I.T.A NO.1587/BANG/2014 (ASSESSMENT YEAR : 2008-09) SHRI. M. NAGESH, NO.4, DHRUVA NILAYA, OLD POLICE STATION ROAD, OLD BANK COLONY, BENGALURU 560 062 .. APPELLAN T PAN : ACWPN0559M V. INCOME-TAX OFFICER, WARD 10(2), BENGALURU .. RESPONDENT ASSESSEE BY : SHRI. RAGHAVENDRA CHAKRABORTHY, CA REVENUE BY : DR. P. K. SRIHARI, ADDL.CIT HEARD ON : 01.06.2016 PRONOUNCED ON : 10.06.2016 O R D E R PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : IN THIS APPEAL FILED BY ASSESSEE, FOLLOWING GROUND S HAVE BEEN RAISED: ITA.1587/BANG/2014 PAGE - 2 ITA.1587/BANG/2014 PAGE - 3 02. ONE OF THE GROUNDS RAISED BY ASSESSEE IS THAT C IT (A) HAD NOT PROVIDED HIM ADEQUATE OPPORTUNITY FOR REPRESENTING HIS CASE, THEREBY VIOLATING THE PRINCIPLES OF NATURAL JUSTICE. 03. FACTS APROPOS ARE THAT ASSESSEE, A CONTRACTOR, HAD FILED HIS RETURN DECLARING INCOME OF RS.1,75,000/-, FOR THE IMPUGNED ASSESSMENT YEAR. DURING THE COURSE OF ASSESSMENT PROCEEDINGS IN RESP ONSE TO NOTICES U/S.143(2) AND 142(1) OF THE INCOME-TAX ACT, 1961 ( THE ACT IN SHORT), SHRI. K. RAMACHANDRA, AUTHORISED REPRESENTATIVE FOR THE ASSESSEE APPEARED. HOWEVER NO EXPLANATION WAS GIVEN BY THE ASSESSEE WI TH REGARD TO VARIOUS INFORMATION SOUGHT BY THE AO WHICH INTER ALIA INCLU DED SOURCE FOR PURCHASE OF IMMOVABLE PROPERTY FOR RS.35,50,000/-, CONFIRMAT ION FOR UNSECURED LOAN OF RS.9,12,098/-, CONFIRMATION FOR SUNDRY CREDITORS OF RS.1,16,431/- AND PROOF FOR VAT LIABILITY OF RS.8,250/-. FURTHER AS PER THE AO, ASSESSEE DID NOT PRODUCE ANY EVIDENCE FOR CLAIM OF CHAPTER VIA D EDUCTION OF RS.1,00,000/-. ASSESSMENT WAS COMPLETED U/S.144 OF THE ACT, MAKING ADDITIONS FOR ALL THE ABOVE. 04. AGGRIEVED ASSESSEE MOVED IN APPEAL BEFORE THE C IT (A). CIT (A) NOTED THAT ASSESSEE DID NOT ENTER APPEARANCE DESPIT E NOTICE HAVING BEEN SERVED. AS PER THE CIT (A), MORE THAN TWO NOTICES WERE SENT TO THE ITA.1587/BANG/2014 PAGE - 4 ASSESSEES AND ONE OF THEM WAS RETURNED WITH A POSTA L REMARK THAT NO SUCH PERSON EXISTED. CIT (A) HELD THAT ASSESSEE WAS NOT INTERESTED IN PURSUING THE CASE. HE CONFIRMED THE ADDITIONS. 05. LD. AR SUBMITTED THAT ASSESSEE WAS NOT GIVEN A PROPER CHANCE TO EXPLAIN ITS CASE BEFORE THE CIT (A). AS PER THE LD . AR, NO NOTICE OF ANY SORT WAS EVER RECEIVED BY THE ASSESSEE. AN AFFIDAV IT OF SHRI. K. RAMACHANDRA, AUTHORISED REPRESENTATIVE, WAS ALSO FI LED BY THE LD. AR, WHICH INTER ALIA STATED THAT THE ADDRESS FOR COMMUN ICATION IN THE APPEAL FILED BEFORE THE CIT (A) WAS G. R. ASSOCIATES, BUT NO NOTICE WAS SERVED IN THE SAID ADDRESS. 06. PER CONTRA, LD. DR SUPPORTED THE ORDERS OF AUTH ORITIES BELOW. 07. WE HAVE PERUSED THE MATERIALS AND HEARD THE RIV AL CONTENTIONS. AFFIDAVIT FILED BY THE REPRESENTATIVE OF THE ASSESS EE STATES THAT THE ADDRESS FOR SERVICE OF NOTICE MENTIONED IN FORM.35, FILED B Y THE ASSESSEE WAS THAT OF THE AUTHORISED REPRESENTATIVE. CONTENTION OF TH E LD. AR WAS THAT NO SUCH NOTICE WAS EVER RECEIVED. IT IS ONE OF THE BA SIC TENETS OF JUSTICE THAT NO MAN SHOULD BE PUNISHED UNHEARD. RULE AUDI ALTERAM PARTEM HAS TO BE ADHERED TO IN LAW AS WELL AS IN SPIRIT. I AM OF TH E OPINION THAT THE CIRCUMSTANCES CALL FOR A REVISIT BY THE CIT (A). W E, THEREFORE, SET ASIDE THE ITA.1587/BANG/2014 PAGE - 5 ORDERS OF THE CIT (A) AND REMIT THE MATTER BACK TO HIM FOR FRESH CONSIDERATION. ASSESSEE SHALL ENSURE THAT HE IS PR OPERLY REPRESENTED BEFORE THE CIT (A). 08. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 10 TH DAY OF JUNE, 2016. SD/- (ABRAHAM P GEORGE) ACCOUNTANT MEMBER MCN COPY TO: 1. THE ASSESSEE 2. THE ASSESSING OFFICER 3. THE COMMISSIONER OF INCOME-TAX 4. COMMISSIONER OF INCOME-TAX(A) 5. DR 6. GF, ITAT, BANGALORE BY ORDER ASSISTANT REGISTRAR