M/s Champion Duplex Board Pvt. Ltd., Ludhiana V. ITO, W-3(2), Ludhiana

ITA 1602/CHANDI/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1499 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 26-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MODIT SRIVASTAVA SR DR
• Keywords: Opportunity of being heard; Principle of natural justice; Condonation of delay; Set aside; Audi alteram partem
• Section: 144

Judgement Text

, .. , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCHES, SMC CHANDIGARH .., ! BEFORE: SHRI. N.K.SAINI, VICE PRESIDENT ITA NO.1602/CHD/2018 ASSESSMENT YEAR : 2013-14 M/S CHAMPION DUPLEX BOARD PVT. LTD. H.NO. 10320, ST. NO. 2, BHAGWAN CHOWK, JANTA NAGAR LUDHIANA, PUNJAB THE ITO, W-3(2), RISHI NAGAR LUDHIANA, PUNJAB PAN NO: AACCC6290M APPELLANT RESPONDENT !' ASSESSEE BY : SHRI TEJ MOHAN SINGH, ADVOCATE #!' REVENUE BY : SHRI MODIT SRIVASTAVA, SR. DR $ %! & DATE OF HEARING : 11/06/2019 '()*! & DATE OF PRONOUNCEMENT : 14/06/2019 '#/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT . 18/08/2017 OF LD. CIT(A)-1, LUDHIANA. 2. THE REGISTRY HAS POINTED OUT THAT THE APPEAL OF THE ASSESSEE IS BARRED BY LIMITATION BY FOUR DAYS. THE ASSESSEE MOVED AN APPLICA TION FOR CONDONATION OF DELAY STATING THEREIN AS UNDER: 1). THAT THE ORDER U/S 250(6) WAS PASSED IN THIS CA SE BY THE LD. CIT(APPEALS)-L, LUDHIANA VIDE ORDER DATED 18.08.2017. THIS ORDER WA S SENT BY SPEED POST TO THE APPELLANT ON 22.08.2017 AND COULD NOT BE SERVED AS THE FACTORY OF THE APPELLANT WAS LYING CLOSED AT THAT TIME. THIS ORDER WAS RECEI VED BACK UNDELIVERED BY THE OFFICE OF THE LD. CIT(APPEALS)-I, LUDHIANA ON 06.09 .2017. 2 2). THAT THE APPELLANT WAS ALL ALONG UNDER THE BONA FIDE IMPRESSION THAT ITS APPEAL AGAINST QUANTUM IS PENDING. HOWEVER ON RECEIPT OF O RDER DATED 10.10.2018 PASSED BY THE LD. A.O. U/S 271(1)(C), THE APPELLANT CAME TO KNOW THAT ITS QUANTUM APPEAL STOOD DISPOSED OF BY THE LD. CIT(APP EALS)-L, LUDHIANA ON 18.08.2017. 3). THAT THEREAFTER, THE APPELLANT FILED AN APPLICA TION ON 23.10.2018 TO THE LD. CIT(APPEALS)-L, LUDHIANA FOR OBTAINING CERTIFIED CO PY OF THE APPELLATE ORDER. A COPY OF THIS APPLICATION IS ENCLOSED HEREWITH. FOLL OWING THAT APPLICATION A CERTIFIED COPY OF THE ORDER WAS GIVEN TO THE APPELL ANT ON 23.10.2018. 4). THAT THE TRIBUNAL APPEAL FEE WAS PAID ON 14.12. 2018 AND THE APPEAL WAS PREPARED ON 21.12.2018. 5). THAT THE APPELLANT HAD BEEN TRYING TO TRANSMIT THIS APPEAL ONLINE SINCE 21.12.2018 BUT COULD NOT SUCCEED DUE TO SOME TECHNI CAL GLITCHES. THEREFORE, THIS APPEAL IS BEING SENT BY SPEED POST. 6). THAT THE DELAY IN FILING OF APPEAL WAS CAUSED B Y DUE TO REASONS AND CIRCUMSTANCES, AS MENTIONED ABOVE, BEYOND THE CONTR OL OF THE APPEAL. 3. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR THE ASSESSEE REITERATED THE CONTENTS OF THE AFORESAID APPLICATION AND REQUESTED TO C ONDONE THE DELAY. 4. THE LD. SR. DR COULD NOT CONTROVERT THE AFORESAID C ONTENTION OF THE LD. COUNSEL FOR THE ASSESSEE. 5. I THEREFORE BY CONSIDERING THE SUBMISSIONS OF BOTH THE PARTIES AND TAKING A LIBERAL VIEW, CONDONE THE DELAY OF FOUR DAYS AND THE APPEAL IS ADMITTED. 6. IN THE PRESENT APPEAL ASSESSEE HAS RAISED THE FOLLOWI NG GROUNDS: 1. THAT THE LD. CIT(A) HAS WRONGLY CONFIRMED A PART OF THE TRADING ADDITION MADE BY THE LD. A.O. 2. THAT THE LD. CIT(A) HAS WRONGLY CONFIRMED ADDITION OF RS. 25,95,000/- MADE BY THE LD. A.O. U/S 68. 3. THAT THE LD. A.O. HAS WRONGLY DECIDED THE APPEAL EX- PARTE AS THE NOTICES SENT BY POST WERE NOT DELIVERED AS THE FACTORY OF T HE APPELLANT COMPANY WAS LYING CLOSED. 4. THAT THE ORDER PASSED BY THE LD. CIT(A) IS BADE IN LAW AS WELL AS ON FACTS. 5. THAT THE APPELLANT CRAVES LEAVE TO ADD OR AMEND ANY GROUND OF APPEAL BEFORE THE APPEAL IS FINALLY HEARD OR DISPOSED OFF. 3 7. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE E-F ILED RETURN OF INCOME ON 30/09/2013 DECLARING LOSS OF RS. 1,84,729/- HOWEVER THE ASSESSING OFFICER FRAMED THE ASSESSMENT EX-PARTE UNDER SECTION 144 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRED TO AS ACT) AND FRAMED THE ASSESSMENT AT AN INCOME OF RS. 35,01,480/-. 8. BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER T O THE LD. CIT(A) WHO SUSTAINED THE ADDITION MADE BY THE ASSESSING OFFICER BY PASSING THE EX-PARTE ORDER. 9. NOW THE ASSESSEE IS IN APPEAL. 10. DURING THE COURSE OF HEARING THE LD. COUNSEL FOR T HE ASSESSEE SUBMITTED THAT PROPER OPPORTUNITY OF BEING HEARD WAS NOT PROVIDED EI THER BY THE ASSESSING OFFICER OR BY THE LD. CIT(A), SO THERE WAS VIOLATION OF THE PRINC IPLES OF NATURAL JUSTICE. HE REQUESTED TO SET ASIDE THE CASE TO THE FILE OF THE ASSESSING OFFI CER. 11. IN HIS RIVAL SUBMISSION THE LD. SR. DR STRONGLY SUP PORTED THE ORDERS OF AUTHORITIES BELOW. 12. I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTI ES AND PERUSED THE MATERIAL ON RECORD. IN THE PRESENT CASE IT IS AN ADMITTED FACT THAT THE ASSESSING OFFICER PASSED THE ASSESSMENT ORDER EX-PARTE UNDER SECTION 144 OF THE ACT. THE LD. CIT(A) ALSO PASSED THE ASSESSMENT ORDER EX-PARTE, ALTHOUGH HE MENTIONED THAT THE ASSESSEE SOUGHT ADJOURNMENT AND THE CASE COULD NOT BE KEPT PENDING INORDINA TELY. HOWEVER NOWHERE IT IS STATED THAT NOTICE FOR HEARING WAS SERVED UPON THE ASSESSEE, LD. CIT(A) SIMPLY STATED THAT THE CASE WAS FIXED FOR HEARING MANY A TIMES IN THE PA ST. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERAM PARTEM. I THEREFORE, KEEPING IN VIEW THE PRINCIPLES OF NATURAL JU STICE DEEM IT APPROPRIATE TO SET 4 ASIDE THIS CASE BACK TO THE FILE OF THE LD. CIT(A) T O BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABL E OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS ALSO DIRECTED TO COO PERATE AND NOT TO SEEK UNDUE OR UNWARRANTED ADJOURNMENTS. 13. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED F OR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 14/06/2019 ) SD/- .., ( N.K. SAINI) ! / VICE PRESIDENT AG DATE: 14/06/2019 PLACE: CHANDIGARH (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE