M/s Singh Automobiles, Kanpur Dehat V. Inocme Tax Officer-3(4), Kanpur

ITA 170/LKW/2015

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 4698 (ITAT-LUCKNOW)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 10-02-2016
• Assessment Year: 2010-2011
• Appeal Filed On: 30-03-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRADEEP SETH
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH A , LUCKNOW BEFORE SHRI S UNIL KUMAR YADAV , JUDICIAL MEMBER AND SHRI. A. K. GARODIA , ACCOUNTANT MEMBER ITA NO. 170/LKW/2015 ASSESSMENT YEAR: 2010 - 11 M/S SINGH AUTOMOBILES KANPUR DEHAT V. INCOME TA X OFFICER 3(4) KANPUR T AN /PAN : ABBFS7397G (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. PRADEEP SETH, FCA RESPONDENT BY: SHRI. AMIT NIGAM, D.R. DATE OF HEARING: 10 02 201 6 DATE OF PRONOUNCEMENT: 19 02 201 6 O R D E R PER SUNIL KUMAR YADAV: THI S APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON THE FOLLOWING GROUNDS: - 1) THAT THE LEARNED C.I.T. (APPEALS) HAS ERRED IN LAW AND ON FACTS IN DISMISSING THE APPEAL EX - PARTE FOR DEFAULT IN A SUMMARY MANNER WITHOUT A LLOWING THE ASSESSEE THE STATUTORY OPPORTUNITY OF BEING HEARD. 2) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN PROCEEDING TO DECIDE THE APPEAL EX - PARTE MERELY ON THE BASIS THAT THE NOTICES DATED 10.03.2014 AND 25.09.2014 WERE I SSUED FOR COMPLIANCE ON 19.03.2014 AND 30.09.2014 RESPECTIVELY BUT HAVE NOT BEEN COMPLIED TILL DATE, WITHOUT VERIFYING WHETHER THE NOTICES SAID TO HAVE BEEN ISSUED HAD BEEN DULY SERVED ON THE : - 2 - : ASSESSEE OR NOT, WHICH ACCORDING TO THE ASSESSEE'S RECORD WERE N EVER RECEIVED BY IT. 3) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN NOT DECIDING THE APPEAL ON MERIT AS REQUIRED BY LAW AND NOT STATING THE FACTS REGARDING EACH GROUND OF APPEAL NOR HIS DECISION ON SUCH GROUND NOR DETAILED REA SON FOR HIS DECISION IN RESPECT OF EACH GROUND AS REQUIRED BY THE PROVISIONS OF SECTION 250(6) OF THE INCOME - TAX ACT AND PRINCIPLES OF NATURAL JUSTICE. 4) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN IGNORING THE FACTS STATED I N THE ASSESSMENT ORDER AND THE STATEMENT OF FACTS FILED WITH THE MEMORANDUM OF APPEAL WHICH CONSTITUTED MATERIAL FOR DECIDING THE APPEAL ON MERIT. 5) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN CONFIRMING THE ADDITION OF RS.24 ,00,000/ - , BEING THE AMOUNT BROUGHT IN BY THE PARTNER AS CAPITAL, AS UNDISCLOSED INCOME OF THE ASSESSEE. 6) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN CONFIRMING THE ABOVE ADDITION IGNORING VOLUMINOUS DOCUMENTARY EVIDENCE IN SUPPORT OF THE SOURCE OF CREDIT IN PARTNER'S CAPITAL ACCOUNT. 7) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN CONFIRMING THE FOLLOWING DISALLOWANCES/ADDITIONS MADE BY THE A.O. 2 . DURING THE COURSE OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE HAS INVITED OUR ATTENTION TO THE ORDER OF THE LD. CIT(A) WITH THE SUBMISSION THAT THE LD. CIT(A) HAS DISPOSED OF THE APPEAL EX - PARTE WITHOUT DEALING WITH THE ISSUES ON MERIT WHEREAS AS PER LAW THE LD. CIT(A) OUGHT TO HAVE ADJUDICATED THE APPEA L ON MERIT EVEN IF THE ASSESSEE DOES NOT APPEAR. THEREFORE, IN THE INTEREST OF JUSTICE, THE ORDER OF THE LD. CIT(A) : - 3 - : MAY BE SET ASIDE AND THE MATTER MAY BE RESTORED TO HIS FILE FOR ADJUDICATION OF THE APPEAL ON MERIT. 3 . THE LD. D.R. HAS ALSO AGREED TO THIS S UBMISSIONS OF THE LD. COUNSEL FOR THE ASSESSEE, AS THE LD. CIT(A) HAS NOT DISPOSED OF THE APPEAL ON MERIT. 4 . HAVING CAREFULLY EXAMINED THE ORDERS OF THE LOWER AUTHORITIES IN THE LIGHT OF THE RIVAL SUBMISSIONS, WE FIND THAT THE LD. CIT(A) HAS DISPOSED OF THE APPEAL WITHOUT DEALING WITH THE ISSUES ON MERIT. W E ARE OF THE VIEW THAT SINCE THE LD. CIT(A) HAS NOT DISPOSED OF THE APPEAL ON MERIT, HIS ORDER DESERVES TO BE SET ASIDE AND WE ACCORDINGLY SET ASIDE THE ORDER OF THE LD. CIT(A) AND RESTORE THE MATTER TO H IS FILE WITH A DIRECTION TO RE - ADJUDICATE THE APPEAL AFRESH AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER WAS PRONOUNCED IN THE OPEN COURT ON THE DATE MENT I ONED ON THE CAPTION ED PAGE. SD/ - SD/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 19 TH 1 . APPELLANT FEBR UARY, 2016 JJ: 1002 COPY FORWARDED TO: 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR