M/S GLOBION INDIA PVT LTD, COIMBATORE V. ITO CORPORATE WARD 2, COIMBATORE

ITA 1758/CHNY/2018

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8407 (ITAT-CHENNAI)
• Duration Of Justice: 3 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-08-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 18-08-2021
• Assessment Year: 2013-2014
• Appeal Filed On: 23-05-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: K R VASUDEVAN
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 63

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL , B B ENCH, CHENNAI . , . , % BEFORE SHRI V.DURGA RAO , JUDICIAL MEMBER AND SHRI G.MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A.NO.1758/CHNY/2018 ( / ASSESSMENT YEAR: 2013-14) M/S. GLOBION INDIA PVT.LTD. JAYA ENCLAVE, 1057,AVINASHI ROAD COIMBATORE-641 018. VS THE INCOME TAX OFFICER CORPORATE WARD-2 COIMBATORE. PAN: AACCG 6839L ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : MR. K.R.VASUDEVAN, ADVOCATE /RESPONDENT BY : MR. ABANI KANTA NAYAK,CIT /DATE OF HEARING : 18.08.2021 /DATE OF PRONOUNCEMENT : 18.08.2021 / O R D E R PER G.MANJUNATHA, AM: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGA INST THE ORDER PASSED BY THE LEARNED PR.CIT-1, COIMBATORE U/ S.263 OF THE ACT DATED 26.03.2018 AND PERTAINS TO ASSESSMENT YEAR 2013-14. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE I S A WORLD CLASS VACCINE MAKER THAT CONTRIBUTES TO QUALITY OF LIFE, HEALTH AND WELL BEING OF ANIMALS, FILED ITS RETURN OF INCOME F OR ASSESSMENT YEAR 2013-14 ON 28.11.2013 DECLARING LOSS OF RS.2,9 2,58,406/-. THE ASSESSMENT HAS BEEN COMPLETED U/S.143(3) OF TH E INCOME TAX ACT, 1961 ON 09.03.2016 AND DETERMINED TOTAL LO SS OF RS.2,92,58,406/-. THE CASE HAS BEEN SUBSEQUENTLY T AKEN UP 2 ITA NO. 1758/CHNY/2018 FOR REVISION U/S.263 OF THE ACT AND ACCORDINGLY, S HOW CAUSE NOTICE DATED 19.03.2018 WAS ISSUED TO THE ASSESSEE ASKING FOR OBJECTIONS, IF ANY, TO THE PROPOSED REVISION. IN RE SPONSE, THE AUTHORIZED REPRESENTATIVE OF THE ASSESSEE MR. S.RAG HU KUMAR APPEARED ON 22.03.2018 AND SOUGHT ADJOURNMENT. THE LEARNED PR.CIT WITHOUT CONSIDERING ADJOURNMENT PETITION FI LED BY THE ASSESSEE HAS PASSED ORDER U/S.263 ON 26.03.2018 AND SET ASIDE ASSESSMENT ORDER PASSED BY THE ASSESSING OF FICER U/S.143(3) DATED 09.03.2016 AND DIRECTED THE ASSES SING OFFICER TO REDO ASSESSMENT, AFTER VERIFICATION OF I SSUES DISCUSSED IN 263 ORDER AS PER LAW. AGGRIEVED BY THE PR.CIT ORDER, THE ASSESSEE IS IN APPEAL BEFORE US. 3. THE LEARNED A.R FOR THE ASSESSEE REFERRING TO S EQUENCE OF EVENTS SUBMITTED THAT THE PR.CIT HAS ISSUED SHOW CAUSE NOTICE ON 19.03.2018. THE ASSESSEE HAS FILED A LETT ER ON 22.03.2018 AND REQUESTED FOR TIME TO PRODUCE DETAI LS AND TO FILE OBJECTIONS FOR PROPOSED REVISION. THE PR.CIT H AS PASSED ORDER U/S.263 ON 26.03.2018. FROM THE ABOVE SEQUEN CE OF EVENTS, IT IS VERY CLEAR THAT THE PR.CIT HAS PASSED ORDER WITHOUT PROVIDING REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE AND HENCE, THE MATTER MAY BE REMANDED BACK TO THE 3 ITA NO. 1758/CHNY/2018 FILE OF THE PR.CIT TO RECONSIDER THE ISSUE AFRESH I N ACCORDANCE WITH LAW. 4. THE LEARNED DR, ON THE OTHER HAND, STRONGLY SUP PORTING ORDER OF THE PR.CIT SUBMITTED THAT THE ASSESSEE HAS FILED LETTER DATED 22.03.2018, WHICH WAS NOT ACKNOWLEDGED BY TH E PR.CIT AND HENCE, ON THE BASIS OF SAID LETTER, IT CANNOT BE SAID THAT THE ASSESSEE HAS SOUGHT ADJOURNMENT OF HEARING, BECAUS E IN PARA 4 OF THE PR.CIT ORDER, IT WAS CLEARLY STATED THAT A R FOR THE ASSESSEE APPEARED AND MADE HIS SUBMISSIONS ON THIS CASE. 5. WE HAVE HEARD BOTH THE PARTIES, PERUSED MATERIAL AVAILABLE ON RECORD AND GONE THROUGH ORDERS OF THE AUTHORITIES BELOW. ADMITTEDLY, THE PR.CIT HAS PASSED REVISION O RDER U/S.263 IN A HURRY, WHICH IS EVIDENT FROM SEQUENCE OF EVENT S BROUGHT OUT BY THE LEARNED A.R FOR THE ASSESSEE THAT SHOW- CAUSE NOTICE WAS ISSUED ON 19.03.2018 AND ORDER WAS PASSE D ON 26.03.2018 WITHIN A SPAN OF ONE WEEK, IGNORING SPEC IFIC REQUEST MADE BY THE ASSESSEE BY WAY OF LETTER DATED 22.03.2 018 FOR ADJOURNMENT OF HEARING TO PRODUCE DETAILS AND FILE OBJECTIONS. IT IS A WELL SETTLED PRINCIPLES OF LAW THAT REASONABLE OPPORTUNITY OF HEARING SHOULD BE PROVIDED TO THE ASSESSEE BEFORE C OMPLETING 4 ITA NO. 1758/CHNY/2018 ANY PROCEEDINGS INCLUDING REVISION PROCEEDINGS. IN THIS CASE, THE LEARNED PR.CIT HAS HURRIEDLY PASSED ORDER U/S.2 63 IN CONTRAVENTION OF PRINCIPLES OF NATURAL JUSTICE WIT HOUT PROVIDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT THE ISSUE NEEDS TO GO BACK TO THE FILE OF THE LEARNED PR.CIT. HENCE, WE REMAND THE MATTER TO THE FILE OF THE LEARNED PR.CIT AND DIRECT HIM TO RECONSIDER THE ISSUE IN ACCORDANCE WITH LAW, AFTER PROVIDING REASO NABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 6. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS T REATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 18 TH AUGUST, 2021 SD/- SD/- ( . ) ( . ) (V.DURGA RAO) ( G.MANJUNATHA ) $ & / JUDICIAL MEMBER & / ACCOUNTANT MEMBER $ /CHENNAI, ) /DATED 18 TH AUGUST, 2021 DS +, -, /COPY TO: 1. APPELLANT 2. RESPONDENT 3. . () /CIT(A) 4. . /CIT 5. , 2 /DR 6. /GF .