Sri Sai Educational Society , Mah V. Income Tax Officer, Ward-1, Mahbubnagar

ITA 1806/Hyd/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 4756 (ITAT-HYDERABAD)
• Duration Of Justice: 8 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB-B
• Next Hearing Date: 15-05-2019
• Assessment Year: 2007-2008
• Appeal Filed On: 07-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NILANJAN DEY
• Keywords: Maximum Marginal Rate; Set aside

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD SMC BENCH, HYDERABAD BEFORE SHRI V. DURGA RAO , HONBLE JUDICIAL MEMBER ITA NO S . 1806 TO 1809 / HYD/ 201 8 (ASST. YEAR S : 20 07 - 08, 2008 - 09, 2010 - 11 & 2011 - 12 ) M/S. SRI SAI EDUCATIONAL SOCIETY, 1 - 4 - 130/18, SANA COMPLEX, OPP. GOVT. HOSPITAL, MAHBUBNAGAR . V S . IT O , WARD - 1 , MAHBUBNAGAR. P AN NO. AAFAS 6773 C (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI MOHD. AFZAL ADV. DEPARTMENT BY : MR . NILANJAN DEY DR DATE OF HEARING : 1 5 / 05 /201 9 . DATE OF PRONOUNCEMENT : 17 / 0 5 /201 9 . O R D E R THESE APPEAL S BY THE ASSESSEE ARE DIRECTED AGAINST THE SEPARATE ORDER S OF COMMISSIONER OF INCOME TAX (APPEALS) - 4 , HYDERABAD , ALL DATED 18 /0 6 /201 8 FOR THE ASSESSMENT YEAR S 2007 - 08, 2008 - 09, 2010 - 11 & 2011 - 1 2. 2 . WHEN THESE APPEALS ARE TAKEN UP FOR HEARING, LD. C OUNSEL FOR THE ASSESSEE HAS MADE A DETAILED SUBMISSION AND ALSO SUBMITTED THAT HE COULD NOT APPEAR BEFORE THE LD.CIT(A) DUE TO CIRCUMSTANCES BEYOND HIS CONTROL. HOWEVER, H E FURTHER SUBMITTED THAT THE LD.CIT(A) HAS PASSED AN EXPARTE ORDER WITHOUT DECIDING THE APPEALS 2 ITA NO S . 1806 - 1809 / HYD /2018 ( M/S. SRI SAI EDUCATIONAL SOCIETY ) ON MERITS . THEREFORE, THE ORDERS PASSED BY THE LD. CIT(A) MAY BE SET ASIDE . IT IS ALSO SUBMITTED THAT THE ASSESSING OFFICER ASSESSED THE INCOME OF THE ASSESSEE BY ADOPTING MAXIMUM MARGINAL RATE WITHOUT GIVING ANY REASONS AND SUBMITTED THAT ASSESSING OFFICER MAY BE DIRECTED TO PASS A REASONED ORDER. 3 . ON THE OTHER HAND, LD. DEPARTMENTAL REPRESENTATIVE STRONGLY SUPPORTED THE ORDERS PASSED BY THE AUTHORITIES BELOW. 4 . I HAVE HEARD BOTH THE PARTIES, PERUSED THE MATERIAL ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. 5. IN TH E S E CASE S, THE ASSESSEE COULD NOT APPEAR BEFORE THE LD.CIT(A) THOUGH AS MANY AS OPPORTUNITIES WERE GIVEN . HOWEVER, THE LD.CIT(A) INSTEAD OF ADJU DI CATING THE APPEALS ON MERITS , PASSED EXPARTE ORDERS . I FIND THAT THE LD.CIT(A) HAS NO POWER TO PASS EXPARTE ORDER BY APPLYING MULTIPLAN (INDIA) LTD.S CASE (38 ITD 320) AND OUGHT TO HAVE BEEN PASSED THE ORDERS ON MERITS OF THE CASES . SO FAR AS ANOTHER ARGUMENT OF THE LD. C OUNSEL FOR THE ASSESSEE IS CONCERNED, THE ASSESSEE IS BEING AN EDUCATIONAL INSTITUTION, WHEN THE ASSESSING OFFICER ADOPTING MAXIMUM MARGINAL RATE, HE OUGHT TO HAVE BEEN SPECIFIED IN THE ASSESSMENT ORDER WHY HE AD O PTED MAXIMUM MARGINAL RATE. THEREFORE, I DIRECT THE ASSESSING OFFICE R TO PASS A DETAILED ORDER IN RESPECT OF ADOPTING MAXIMUM MARGINAL RATE . IN VIEW OF THE ABOVE, I SET ASIDE THE ORDER PASSED BY THE 3 ITA NO S . 1806 - 1809 / HYD /2018 ( M/S. SRI SAI EDUCATIONAL SOCIETY ) LD.CIT(A) AND REMIT THE ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER TO PASS A REASONED ORDER IN ACCORDANCE WITH LAW AFTE R GIVING AFFORDABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. THUS, THESE APPEALS FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, APPEAL S FILED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON TH IS 17 TH DAY OF MAY , 201 9 . S D/ - ( V. DURGA RAO ) JUDICIAL MEMBER DATED : 17 TH MAY , 201 9 . VR/ - COPY TO: 1. THE ASSESSEE - M/S. SRI SAI EDUCATIONAL SOCIETY, 1 - 4 - 130/18, SANA COMPLEX, OPP. GOVT. HOSPITAL, MAHBUBNAGAR. 2. THE REVENUE - ITO, WARD - 1, MAHBUBNAGAR. 3. THE PR. CIT - 4, HYDERABAD. 4. THE CIT(A) - 4, HYDERABAD. 5. THE D.R . , HYDERABAD. 6. GUARD FILE. BY ORDER SR. PRIVATE SECRETARY, ITAT, HYDERABAD .