M/s.Integrated Textiles Connections P. Ltd., Bangalore V. Pr. Commissioner of Income Tax, Bangalore

ITA 1630/BANG/2016

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 7132 (ITAT-BANGALORE)
• Duration Of Justice: 3 year(s) 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2011-2012
• Appeal Filed On: 12-09-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: V SRINIVASAN
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 40A(3); 263

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER AND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1630/BANG/2016 ASSESSMENT YEAR : 201011 M/S INTEGRATED TEXTILES NO.83, COLES ROAD CONNECTIONS PVT. LTD., FRAZER TOWN, BENGALURU-560 001. PAN AAACI 7484 F VS. THE PR. COMMISSIONER OF INCOME-TAX-3, BENGALURU. THE INCOME TAX OFFICER WARD-3(1)(4), BENGALURU. APPELLANT RESPONDENT APPELLANT BY : SHRI V SRINIVASAN, ADVOCATE RESPONDENT BY : SHRI PRADEEP KUMAR , CIT (DR) DATE OF HEARING : 0 2 - 0 9 - 2020 DATE OF PRONOUNCEMENT : 02 - 0 9 - 2020 ORDER PER BEENA PILLAI, JUDICIAL MEMBER PRESENT APPEAL HAS BEEN FILED BY ASSESSEE AGAINST O RDER PASSED BY LD.CIT UNDER SECTION 263 OF THE ACT BY ORDER DAT ED 30/03/2016. 2. AT THE OUTSET, LD.AR SUBMITTED THAT, ONLY GRIEVANC E THAT ASSESSEE HAS IN IMPUGNED ORDER IS REGARDING DIRECTION BY LD. PR.CIT TO LD.AO PAGE 2 OF 4 ITA NO. 1630/BANG/2016 TO DISALLOW PAYMENTS MADE BY WAY OF CASH/CHEQUE UND ER SECTION 40A(3) OF THE ACT. 3. ADMITTEDLY, LD.AO DID NOT VERIFY THE ISSUE CONSIDER ED BY LD.PR.CIT IN 263 PROCEEDINGS. IT HAS BEEN SUBMITTED THAT, IN 263 PROCEEDINGS LD.PR.CIT CANNOT DIRECT ASSESSING OFFIC ER TO MAKE ADDITION, RATHER A DIRECTION FOR ADJUDICATING THE I SSUE CAN ONLY BE MADE. 4. LD.AR. SUBMITTED THAT, PURSUANT TO ORDER PASSED UND ER SECTION 263 LD.AO PASSED ORDER MAKING ADDITION IN HANDS OF ASSESSEE, WITHOUT OFFERING OPPORTUNITY OF BEING HEARD, CAUSIN G VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 5. LD.CIT.DR RELIED ON ORDER PASSED BY LD.PR.CIT. WE HAVE PERUSED SUBMISSIONS ADVANCED BY BOTH SIDES IN LIGHT OF RECORDS PLACED BEFORE US. ADMITTEDLY, LD.PR.CIT IN IMPUGNED ORDER, DIRECTED LD.AO TO MAKE ADDITION IN HANDS OF ASSESSE E. IT HAS BEEN SUBMITTED THAT LD.AO PASSES ORDER GIVING EFFECT TO SECTION 263 ORDER ON 30/6/2016, WITHOUT ISSUING ANY NOTICE TO ASSESSE E. ASSESSEE THUS HAS NOT BEEN GRANTED OPPORTUNITY OF BEING HEAR D BEFORE LD.AO. SUCH IS NOT THE MANDATE OF SECTION 263. WE THEREFOR E, SET ASIDE ORDER DATED 30/6/2016 PASSED BY LD.AO GIVING EFFECT TO DIRECTION OF LD.PR.CIT. LDAO IS DIRECTED TO ISSUE NOTICE TO ASSE SSEE IN RESPECT OF THE ISSUE CONSIDERED BY LD.PR.CIT IN IMPUGNED ORDER . NEEDLESS TO SAY THAT, PROPER OPPORTUNITY OF BEING HEARD SHALL B E GRANTED TO ASSESSEE. ASSESSEE IS DIRECTED TO FILE ALL REQUISIT E DETAILS IN SUPPORT PAGE 3 OF 4 ITA NO. 1630/BANG/2016 OF ITS CONTENTION. BASED ON EVIDENCES FILED BY ASSE SSEE, LD.AO SHALL PASS A REASONED ORDER IN ACCORDANCE WITH LAW. IN THE RESULT, APPEAL FILED BY ASSESSEE STANDS ALLO WED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON ORDER PRONOUNCED IN THE OPEN COURT ON 2 ND SEPT, 2020. SD/- SD/- (CHANDRA POOJARI) (BEENA PILLAI) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE, DATED, THE 2 ND SEPT, 2020. /VMS/ COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME-TAX APPELLATE TRIBUNAL. BANGALORE. PAGE 4 OF 4 ITA NO. 1630/BANG/2016 DATE INITIAL 1. DRAFT DICTATED ON ON DRAGON SR.PS 2. DRAFT PLACED BEFORE AUTHOR - 0 9 - 2020 SR.PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER - 0 9 - 2020 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. - 0 9 - 2020 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS - 0 9 - 2020 SR.PS/PS 6. KEPT FOR PRONOUNCEMENT ON - 0 9 - 2020 SR.PS 7. DATE OF UPLOADING THE ORDER ON WEBSITE - 0 9 - 2020 SR.PS 8. IF NOT UPLOADED, FURNISH THE REASON - 09 - 2020 SR.PS 9. FILE SENT TO THE BENCH CLERK - 0 9 - 2020 SR.PS 10. DATE ON WHICH FILE GOES TO THE AR 11. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 12. DATE OF DISPATCH OF ORDER. 13. DRAFT DICTATION SHEETS ARE ATTACHED NO SR.PS