M/s. Garage Labs Technologies Private Limited, Bangalore V. The Income Tax Officer, Ward- 3(1)(2), Bangalore

ITA 1744/BANG/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3215 (ITAT-BANGALORE)
• Duration Of Justice: 7 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2016-2017
• Appeal Filed On: 07-08-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice; Set aside

Judgement Text

ITA NO.1744/BANG/2019 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD., BANGALORE IN THE INCOME TAX APPELLATE TRIBUNAL BBENCH: BANGALORE BEFORE SHRI B.R. BASKARAN, ACCOUTANT MEMBERAND SMT. BEENA PILLAI, JUDICIAL MEMBER ITA NO.1744/BANG/2019 ASSESSMENTYEAR:2016-17 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD. #202, CJVD, 50 FT. ROAD, 9 TH CROSS, PADMANABHANAGAR BENGALURU-560070 PAN NO :AAFCG7400C VS. THE INCOME TAX OFFICER WARD-3(1)(2) KORAMANGALA BENGALURU APPELLANT RESPONDENT A PPELLANT BY : NONE LETTER BROUGHT BY SHRI SHIVAKUMAR, OFFICE ASSISTANT RESPONDENT BY : SHRI RAJENDRA CHANDEKAR, D.R. DATE OF HEARING : 09.03.2020 DATE OF PRONOUNCEMENT : 11.03.2020 O R D E R PERB.R. BASKARAN, ACCOUNTANT MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAIN ST ORDER DATED 7.6.2019 PASSED BY LD. CIT(A)-3, BENGAL URU AND IT RELATES TO THE ASSESSMENT YEAR 2016-17. THE ITANO.1744/BANG/2019 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD., BANGALORE PAGE 2 OF 6 ASSESSEE IS AGGRIEVED BY THE DECISION OF LD. CIT(A) IN CONFIRMING THE ADDITION MADE U/S 56(2)(VIIB) OF THE INCOME-TAX ACT,1961 ['THE ACT' FOR SHORT] RELATING TO THE SHARE PREMIUM RECEIVED BY THE ASSESSEE. 2. AT THE TIME OF HEARING, AN ADJOURNMENT REQUEST W AS MOVED BY THE REPRESENTATIVE OF THE ASSESSEE SEEKING TIME TO FILE PAPER BOOKS. THE SAID LETTER WAS PRESENTED BY A MESSENGER OF THE REPRESENTATIVE. HOWEVER, ON GOING THROUGH THE ORDER PASSED BY LD. CIT(A), WE NOTICE T HAT THE FIRST APPELLATE AUTHORITY WAS CONSTRAINED TO PASS E X-PARTE ORDER, SINCE THE ASSESSEE DID NOT APPEAR BEFORE HIM DESPITE GIVING OPPORTUNITY TO THE ASSESSEE THREE TI MES. HENCE WE REJECT THE ADJOURNMENT REQUEST AND PROCEED TO DISPOSE OF THE APPEAL. ITANO.1744/BANG/2019 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD., BANGALORE PAGE 3 OF 6 3. WE ALSO NOTICE THAT THE ASSESSEE HAS NOT FILED ANY WRITTEN SUBMISSIONS BEFORE LD. CIT(A). UNDER THESE SET OF FACTS, THE LD. CIT(A) HAS PASSED THE ORDER EX-PARTE , WITHOUT PRESENCE OF THE ASSESSEE. WE ALSO NOTICE T HAT THE LD. CIT(A) HAS PASSED A DETAILED ORDER AND CONFIRME D THE ADDITION MADE BY THE ASSESSING OFFICER U/S 54(2)(VI IB) OF THE ACT. 4. WE HEARD LD. D.R., WHO SUBMITTED THAT THE ORDER PASSED BY LD. CIT(A) SHOULD BE UPHELD SINCE THE LD. CIT(A) HAS PASSED A REASONED AND DETAILED ORDER. HOWEVER, WE NOTICE THAT THE ASSESSEE DID NOT APPEAR BEFORE LD CIT(A). HENCE, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ASSESSEE SHOULD BE GIVE N AN OPPORTUNITY TO PRESENT ITS CASE. SINCE THE ASSESSE E WAS DELINQUENT BEFORE LD. CIT(A), WE ARE OF THE VIEW TH AT THE ASSESSEE SHOULD BEAR A COST OF RS.5,000/- (RS. FIVE ITANO.1744/BANG/2019 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD., BANGALORE PAGE 4 OF 6 THOUSAND ONLY), WHICH SHALL BE PAID TO THE CREDIT O F THE INCOME TAX DEPARTMENT AS OTHER FEES WITHIN 30 DAY S FROM THE DATE OF RECEIPT OF THIS ORDER. SUBJECT TO THE PAYMENT OF ABOVE FEE, WE SET ASIDE THE ORDER PASSED BY LD. CIT(A) AND RESTORE ALL THE ISSUES TO HIS FILE FOR A DJUDICATING THEM AFRESH, AFTER AFFORDING ADEQUATE OPPORTUNITY O F BEING HEARD TO THE ASSESSEE. WE ALSO DIRECT THE ASSESSEE TO FULLY COOPERATE WITH LD. CIT(A) FOR EXPEDITIOUS DISPOSAL OF THE APPEAL. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 11.03.2020 SD/- (BEENA PILLAI) JUDICIAL MEMBER SD/- (B.R. BASKARAN) ACCOUNTANT MEMBER BANGALORE, DATED 11 TH MARCH, 2020. /VG/ ITANO.1744/BANG/2019 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD., BANGALORE PAGE 5 OF 6 COPY TO: 1. THE APPLICANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASST. REGISTRAR, ITAT, BANGALORE. ITANO.1744/BANG/2019 M/S. GARAGE LABS TECHNOLOGIES PVT. LTD., BANGALORE PAGE 6 OF 6 1. DATE OF DICTATION 2. DATE ON WHICH THE TYPED DRAFT IS PLACED BEFORE THE DICTATING MEMBER . 3. DATE ON WHICH THE APPROVED DRAFT COMES TO SR.P.S .. 4. DATE ON WHICH THE FAIR ORDER IS PLACED BEFORE THE DICTATING MEMBER .. 5. DATE ON WHICH THE FAIR ORDER COMES BACK TO THE S R. P.S. .. 6. DATE OF UPLOADING THE ORDER ON WEBSITE.. 7. IF NOT UPLOADED, FURNISH THE REASON FOR DOING SO .. 8. DATE ON WHICH THE FILE GOES TO THE BENCH CLERK .. 9. DATE ON WHICH ORDER GOES FOR XEROX & ENDORSEMENT 10. DATE ON WHICH THE FILE GOES TO THE HEAD CLERK . 11. THE DATE ON WHICH THE FILE GOES TO THE ASSISTANT REGISTRAR FOR SIGNATURE ON THE ORDER . 12. THE DATE ON WHICH THE FILE GOES TO DISPATCH SEC TION FOR DISPATCH OF THE TRIBUNAL ORDER . 13. DATE OF DESPATCH OF ORDER. .. 14. DICTATION NOTE ENCLOSED