Almighty Solutions Pvt. Ltd., Ranipet V. DCIT, Vellore

ITA 1591/CHNY/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8114 (ITAT-CHENNAI)
• Duration Of Justice: 7 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2017
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2011-2012
• Appeal Filed On: 31-05-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: PATHLAVATH PEERYA
• 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; 143(3); 92; 115JB; 201

Judgement Text

, , IN THE INCOME - TAX APPELLATE TRIBUNAL A BENCH, CHENNAI , . , BEFORE SHRI CHANDRA POOJARI , ACCOUNTANT MEMBER & SHRI DUVVURU RL REDDY , JUDICIAL MEMBER ./ I.T.A.NO. 1591 /MDS/2016 / ASSESSMENT YEAR :20 11 - 1 2 M/S. ALMIGHTY SOLUTIONS PVT. LTD., NO. 11 - A, ANJANEYAR KOIL STREET, RANIPET 632 401. [PAN: A AECA6978Q ] VS. THE PRINCIPAL COMMISSIONER OF INCOME TAX 8 , C HENNA I . ( / APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI T. VASUDEVAN, A DVOCATE / RESPONDENT BY : S HRI PATHLAVATH PEERYA , CIT / DATE OF HEARING : 0 9 . 1 1 .201 6 / DATE OF P RONOUNCEMENT : 06 . 01 .201 7 / O R D E R PER DUVVURU RL REDDY , JUDICIAL MEMBER : TH I S APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. PRINCIPAL COMMIS SIONER OF INCOME TAX 8 , C HENNAI DATED 2 3. 03 .201 6 RELEVANT TO THE ASSESSMENT YEAR 20 11 - 1 2 . THE ASSESSEE HAS RAISED MANY GROUNDS IN ITS APPEAL, BUT MAIN LY CHALLENGED THE EX - PARTE ORDER PASSED UNDER SECTION 263 OF THE INCOME TAX ACT, 1961[ ACT IN SHORT] ON THE GROUND I.T.A. NO . 1591 / M/ 1 6 2 THAT THE LD. PCIT HAS AFFORDED SUFFICIENT OPPORT UNITY OF HEARING TO THE ASSESSEE . 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE HAS FILED ITS RETURN ADMITTING NIL INCOME AND BOOK PROFIT UNDER SECTION 115JB OF THE ACT AT .38,075/ - . ASSESSMENT IN THIS CASE WAS COMPLETED UNDER SECTION 143(3) OF THE ACT ON 30.04.3013 BASED ON THE BOOK PROFIT UNDER SECTION 115JB OF THE ACT AT .54,53,075/ - . 3. SUBSEQUENTLY, A SHOW CAUSE NOTICE DATED 10.03.2016 WAS ISSUED TO THE AGAINST THE ASSESSMENT ORDER PROPOSING ACTION UNDER SECTION 263 OF THE ACT WITH FOLLOWING REASONS: PERUSAL OF RECORDS SHOWS THAT TAX PAYABLE ON TOTAL INCOME OF .54,51,000/ - IS MORE THAN THE TAX PAYABLE AS PER SECTION 115JB ON BOOK PROFIT OF .54,53,075/ - . THIS HAS NOT BEEN DONE BY THE ASSESSING OFFICER DURING THE COURSE OF SCRUTINY ASSESSMENT. THE LD. PCIT POSTED THE CASE FOR HEARING ON 17.04.3016 AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE FOR THE PROPOSED REVISION UNDER SECTION 263 OF THE ACT. SINCE, THERE WAS NO RESPONSE FROM THE ASSESSEE, THE LD. PCIT PASSED UNDER SECTION 263 OF THE ACT DIRECTING THE ASSESSING OFFICER TO TAX ON TOTAL INCOME OF .54,15,000/ - . I.T.A. NO . 1591 / M/ 1 6 3 4. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE LD. PCIT HAS NOT GIVEN SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND PASSED THE EX - PARTE ORDER HURRIEDLY AND PRAYED THAT ONE MORE OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE LD. PCIT. 5. ON THE OTHER HAND, THE LD. DR DID NOT SERIOUSLY OBJECT TO THE SUBMISSIONS OF THE ASSESSEE. 6. WE HAVE HEARD BOTH SIDES, PERUSED THE MATERIALS ON RECORD AND GONE THROUGH THE ORDER OF THE LD. PCIT. IN THIS CASE, THE ASSESSEE HAS NOT FILED THE ASSESSMENT ORDER. ON PERUSAL OF THE ORDER UNDER SECTION 263 OF THE ACT, THE LD. PCIT HAS FIXED THE CASE FOR HEARING ON 17.03.2016 (THURSDAY) BY SERVING NOTICE ON 10.03.2016 (THURSDAY). FROM THE ABOVE, IT IS QUITE EVIDENT THAT THE LD. PCIT HAS NOT GIVEN SUFFICIENT TIME TO THE ASSESSEE TO APPEAR BEFORE HIM AND MAKE ITS REPRESENTATION. AS RIGHTLY CONTENDED BY THE LD. COUNSEL FOR THE ASSESSEE, WE ARE OF THE OPINION THAT THE LD. PCIT HAS GIVEN VERY SHORT NOTICE TO THE ASSESSEE NOT ENABLING THE ASSESSEE TO FILE EVEN THE ADJOURNMENT APPLICATION. UNDER THE ABOVE FACTS AND CIRCUMSTANCES, WE SET ASIDE THE ORDER PASSED UNDER SECTION 263 OF THE ACT AND DIRECT THE LD. PCIT TO GIVE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW . SINCE WE HAVE SET ASIDE THE ORDER PASSED I.T.A. NO . 1591 / M/ 1 6 4 UNDER SECTION 263 OF THE ACT TO THE FILE OF THE LD. PCIT, THE OTHER GROUNDS RAISED IN THE APPEAL ARE NO T REQUIRED TO BE ADJUDICATED ON MERITS . 7 . IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ORDER PRONOUNCED ON THE 06 TH JANUARY , 201 7 AT CHENNAI. SD/ - SD/ - (CHANDRA POOJARI) ACCOUNTANT MEMBER ( DUVVURU RL REDDY ) JU DICIAL MEMBER CHENNAI, DATED, THE 06 . 0 1 .201 7 VM/ - / COPY TO: 1. / APPELLANT , 2. / RESPONDENT , 3. ( ) / CIT(A) , 4. / CIT , 5. / DR & 6. / GF.