Sunny Technologies Pvt. Ltd., Kolkata V. I.T.O.Ward-2(4), Kolkata

ITA 1699/KOL/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 9718 (ITAT-KOLKATA)
• Duration Of Justice: 11 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-07-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2007-2008
• Appeal Filed On: 18-07-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SUPRIYO PAL
• Assessee Lawyers: MANISH TIWARI
• Keywords: Opportunity of being heard; Set aside

Judgement Text

ITA NO. 1699/KOL/2019 ASS ESSMENT YEAR: 2007-2008 SUNNY TECHNOLOGIES PVT. LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT & SHRI A.T. VARKEY, JUDICIAL MEMBER I.T.A. NO. 1699/KOL/2019 ASSESSMENT YEAR: 2007-2008 SUNNY TECHNOLOGIES PVT. LIMITED,................... ............................APPELLANT 43, ASHUTOSH CHOWDHURY AVENUE, GROUND FLOOR, SUNNY TOWER, BALLYGUNGE, KOLKATA-700019 [PAN: AAGCS0620M] -VS.- INCOME TAX OFFICER,................................ ...................................RESPONDENT WARD-2(4), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 APPEARANCES BY: SHRI MANISH TIWARI, FCA, FOR THE APPELLANT SHRI SUPRIYO PAL, JCIT, D.R., FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : JULY 02, 2020 DATE OF PRONOUNCING THE ORDER : JULY 02, 2020 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-17, KOLKATA DA TED 28.11.2018 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF SALE OF SOFTWARE. THE RETURN OF INC OME FOR THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 03.11.2007 DECLARI NG TOTAL INCOME AT ITA NO. 1699/KOL/2019 ASS ESSMENT YEAR: 2007-2008 SUNNY TECHNOLOGIES PVT. LIMITED 2 NIL. IN THE ASSESSMENT COMPLETED UNDER SECTION 14 3(3) VIDE AN ORDER DATED 22.12.2009, AN ADDITION OF RS.1,72,514/- WAS MADE BY THE ASSESSING OFFICER TO THE TOTAL INCOME OF THE ASSESSEE ON ACCO UNT OF DISALLOWANCE OF 50% OF THE INTEREST EXPENDITURE CLAIMED BY THE ASSE SSEE. 3. THE DISALLOWANCE MADE BY THE ASSESSING OFFICER O N ACCOUNT OF INTEREST WAS CHALLENGED BY THE ASSESSEE IN THE APPE AL FILED BEFORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO SATISFACTORY CO MPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTICES ISSUED BY HIM FIXING THE SAID APPEAL FOR HEARING FROM TIME TO TIME, THE LD CIT(APPEALS) DISM ISSED THE APPEAL OF THE ASSESSEE VIDE HIS APPELLATE ORDER DATED 28.11.2 018 PASSED EX-PARTE THEREBY CONFIRMING THE DISALLOWANCE MADE BY THE ASS ESSING OFFICER ON ACCOUNT OF INTEREST. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBU NAL. 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. THE LD. COUN SEL FOR THE ASSESSEE HAS SUBMITTED THAT NONE OF THE NOTICES STATED TO BE SEN T BY THE LD. CIT(APPEALS) FIXING THE APPEAL OF THE ASSESSEE FOR HEARING FOR VARIOUS DATES WAS EVER RECEIVED BY THE ASSESSEE AND SUCH NO NE RECEIPT OF THE NOTICES RESULTED INTO NON-COMPLIANCE ON THE PART OF THE ASSESSEE. KEEPING IN VIEW THIS SUBMISSION MADE BY THE LD. COUNSEL FOR THE ASSESSEE, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR NON -APPEARANCE OF THE ASSESSEE BEFORE THE LD. CIT(APPEALS) WHEN ITS APPEA L WAS FIXED FOR HEARING. EVEN THE LD. D.R. HAS NOT RAISED ANY OBJEC TION IN THIS REGARD. WE, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY T HE LD. CIT(APPEALS) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPO SING OF THE APPEAL OF THE ASSESSEE AFRESH ON MERIT AFTER GIVING THE ASSES SEE PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. AS UNDERTAKE N BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE DUE COMPL IANCE BEFORE THE LD. CIT(APPEALS) AND SHALL EXTEND ALL THE POSSIBLE COOP ERATION IN ORDER TO ENABLE THE LD. CIT(APPEALS) TO DISPOSE OF THE APPEA L AFRESH EXPEDITIOUSLY. ITA NO. 1699/KOL/2019 ASS ESSMENT YEAR: 2007-2008 SUNNY TECHNOLOGIES PVT. LIMITED 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JULY 02, 2020 . SD/- SD/- (A.T. VARKEY) (P.M. JAGTAP) JUDICIAL MEMBER VIC E-PRESIDENT) KOLKATA, THE 2 ND DAY OF JULY, 2020 COPIES TO : (1) SUNNY TECHNOLOGIES PVT. LIMITED, 43, ASHUTOSH CHOWDHURY AVENUE, GROUND FLOOR, SUNNY TOWER, BALLYGUNGE, KOLKATA-700019 (2) INCOME TAX OFFICER, WARD-2(4), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-17, KOLKATA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.