Sudhansu Sekhar Bhanja, Kalinga Nagar V. ACIT, Circle - 1(1), Cuttack

ITA 161/CTK/2020

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7997 (ITAT-CUTTACK)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-08-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2015-2016
• Appeal Filed On: 09-07-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: S.K.JENA
• Keywords: Set aside
• Section: 244A; 20

Judgement Text

P A G E 1 | 3 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE SHRI CHANDRA MOHAN GARG , JUDICIAL MEMBER AND LAXMI PRASAD SAHU, ACCOUNTANT MEMBER ITA NO . 161 /CTK/20 20 ASSESSMENT YEAR : 2015 - 16 SUDHANSU SEKHAR BHANJA, AT: DHULIGARH, KALINGA NAGAR, DIST: JAJPUR VS. ACIT, CIRCLE 1(1), CUTTACK PAN/GIR NO. AIDPB 2217 P (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI S.K.JENA , AR REVENUE BY : SHRI SUBHENDU D A TTA, DR DATE OF HEARING : 25 / 0 8 / 20 20 DATE OF PRONOUNCEMENT : 25 / 0 8 /20 20 O R D E R PER C.M.GARG,JM THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER OF THE CIT(A), CUTTACK DATED 24.2.2020 FOR THE ASSESSMENT YEAR 2015 - 16 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS: FOR THAT, THE LD. A.O. IS ERRED IN MAKING DISALLOWANCES AND ADDITIONS ON ACCOUNT OF INVOCATION OF SECTION 40(A) (I A) INTEREST PAID TO NBFC'S AMOUNTING TO RS2,03,489/ - , INTEREST ON REFUND U/S. 244A AMOUNTING TO RS. 16,770/ - . THEREAFTER THE LD. A. O IS ERRED IN ADOPTING ESTIMATION OF PROFIT @ 5% OF THE GROSS CONTRACTUAL RECEIPTS IN PLACE OF @2.75% AS PER AUDITED ACCOUNT, WITHOUT REJECTING THE BOOKS OF ACCOUNTS WHICH ARE PRIMA FACIE INCORRECT, ARBITRARY AND EXCESSIVE . THE LD. C I T [A] IS ALSO ERRED I N CONFIRMING THE SAME ON THE GROUND OF NON APPEARANCE BY THE APPELLANT, HENCE SUCH ADDITIONS IN THE ASSESSMENT ORDER IS LIABLE TO BE DELETED AND IMPUGNED ORDERS ARE LIABLE TO BE QUASHED. ITA NO.161/CTK/2020 ASSESSMENT YEAR : 2015 - 16 P A G E 2 | 3 3. LD A,.R. OF THE ASSESSEE SUBMITTED THAT THE CIT(A) HAS PASSED OR DER EXPARTE WITHOUT HEARING THE ASSESSEE. HENCE, IT WAS HIS PRAYER THAT THE MATTER MAY BE RESTORED TO HIS FILE FOR FRESH ADJUDICATION AFTER HEARING THE ASSESSEE. LD D.R. DID NOT HAVE ANY OBJECTION TO RESTORING THE MATTER TO THE FILE OF THE LD CIT(A). 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE RECORD OF THE CASE. WE FIND THAT THE LD CIT(A) HAD FIXED THE APPEAL FOR HEARING ON SEVERAL DATES AND DUE TO NON - COMPLIANCE FROM THE SIDE OF THE ASSESSEE, HE PASSED THE EXPARTE ORDER WITHOUT DISCUSSING T HE ISSUE ON MERITS. THE ITAT, AHMEDABAD IN THE CASE OF GUJARAT THEMIS BIOSYN LTD VS. JCIT (2000) 74 ITD 339 (AHD) HAS HELD THAT THE PROVISIONS OF SECTION 250(6) ARE MANDATORY AND IT IS OBLIGATORY FOR COMMISSIONER(APPEALS) TO PASS A SPEAKING ORDER STATING P OINTS RAISED IN APPEALS, HIS DECISION THEREON AND REASONS FOR SUCH DECISIONS. THE PROVISIONS OF SECTION 250(6) PROVIDE THAT THE APPELLATE ORDER OF COMMISSIONER (A) ARE TO STATE THE POINTS ARISING IN THE APPEAL, THE DECISION OF THE AUTHORITY THEREON AND THE REASONS FOR SUCH DECISION. THE UNDERLYING RATIONALE OF THE PROVISION IS THAT SUCH ORDERS ARE SUBJECT TO FURTHER APPEAL TO THE TRIBUNAL. SPEAKING ORDER WOULD OBVIOUSLY ENABLE A PARTY TO KNOW PRECISE POINTS DECIDED IN HIS FAVOUR OR AGAINST HIM. SINCE, THE LD CIT(A) HAS PASSED ORDER EXPARTE AND WITHOUT DISCUSSING THE ISSUE ON MERITS, WE SET ASIDE THE ORDER OF THE LD CIT(A) AND RESTORE THE SAME TO HIS ITA NO.161/CTK/2020 ASSESSMENT YEAR : 2015 - 16 P A G E 3 | 3 FILE FOR FRESH ADJUDICATION AFTER GIVING REASONABLE OPPORTUNITY TO THE ASSESSEE. THE LD A.R. HAS STATED I N THE BAR THAT HE WILL CO - OPERATE WITH THE LD CIT(A) FOR DISPOSAL OF THE APPEAL. WITH THESE DIRECTIONS, THE APPEAL IS RESTORED TO THE FILE OF THE LD CIT(A). 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 25 / 0 8 /20 20 . S D/ - SD/ - (LAXMI PRASAD SAHU) ( CHANDRA MOHAN GARG) ACCOUNTANT MEMBER JUDICIAL MEMBER CUTTACK; DATED 25 / 8 /20 20 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER SR . PVT. S ECRETARY ITAT, CUTTACK 1. THE APPELLANT : SUDHANSU SEKHAR BHANJA, AT: DHULIGARH, KALINGA NAGAR, DIST: JAJPUR 2. THE RESPONDENT. ACIT, CIRCLE 1(1), CUTTACK 3. THE CIT(A) - , CUTTACK 4. PR.CIT - , CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//