Fusion Technologies (India) Pvt.Ltd, Hyderabad V. ITO, Ward-1(2), Hyderabad

ITA 1827/HYD/2011

• Counselvise Citation: 182722514 RSA 2011
• Duration Of Justice: 3 year(s) 4 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 03-03-2015
• Assessment Year: 2005-2006
• Appeal Filed On: 24-10-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D SUDHAKAR RAO
• Assessee Lawyers: A SRINIVAS
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH B, HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER ITA NO. 1827/HYD/2011 ASSESSMENT YEAR: 2005-06 FUSION TECHNOLOGIES (INDIA) PVT. LTD., HYDERABAD. PAN AAACF5754H INCOME-TAX OFFICER, WARD 1(2), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY SHRI A. SRINIVAS REVENUE BY SHRI D. SUDHAKAR RAO DATE OF HEARING 03-03-2015 DATE OF PRONOUNCEMENT 03-03-2015 O R D E R PER ASHA VIJAYARAGHAVAN, J.M.: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF LD. CIT(A)-III, HYDERABAD DATED 15/10/2010 FOR AY 2005- 06. 2. BRIEFLY THE FACTS OF THE CASE ARE THAT ASSESSEE FILED ITS RETURN OF INCOME ON 20.10.2005 DECLARING INCOME OF RS. 7,970 AFTER CLAIMING EXEMPTION U/S 10A OF THE IT ACT OF RS. 1,31,07,360, WHICH WAS PROCESSED U/S 143(1). SUBSEQUENTLY, THE CASE WAS SE LECTED FOR SCRUTINY ASSESSMENT AND NOTICE U/S 143(3) DATED 15/ 05/2006 WAS ISSUED TO ASSESSEE. AFTER VERIFYING THE INFORMATION FURNISHED AND HEARING THE CASE, ASSESSMENT WAS COMPLETED BY THE A O DETERMINING THE TAXABLE INCOME OF ASSESSEE AT RS. 1,67,16,564 B Y MAKING VARIOUS ADDITIONS. AGGRIEVED, ASSESSEE CARRIED THE MATTER I N APPEAL BEFORE THE CIT(A). 2 ITA NO. 1827/HYD/2011 FUSION TECHNOLOGIES (INDIA) PVT. LTD. 3. FOR DECIDING THE APPEAL, CIT(A) ISSUED VARIOUS N OTICES FIXING THE CASE FOR HEARING ON VARIOUS DATES. THERE WAS NO COMPLIANCE TO THE SAID NOTICES BY ASSESSEE. A FINAL NOTICE WAS IS SUED TO ASSESSEE FIXING THE CASE ON 13/10/2010 STATING THAT IN CASE NO COMPLIANCE IS MADE ON THE SAID DATE, THE APPEAL SHALL BE DECIDED EX-PARTE. HOWEVER, IN RESPONSE TO THE SAID NOTICE, A PETITION FOR ADJOURNMENT WAS FILED BY THE AR OF ASSESSEE REQUESTING FOR ADJO URNMENT OF THE CASE TO ANY DATE AFTER 15 TH OCTOBER, 2010. THE CIT(A) REJECTED THE PETITION FOR ADJOURNMENT OBSERVING THAT ENOUGH TIME AND OPPORTUNITIES HAD ALREADY BEEN ALLOWED EARLIER. HE, THEREFORE, PA SSED EX-PARTE ORDER ON MERITS OF THE CASE, AFTER CONSIDERING THE STATEMENTS OF FACTS, GROUNDS OF APPEAL AND THE MATERIAL AVAILABLE ON REC ORD, SUSTAINING THE ADDITIONS MADE BY AO. AGGRIEVED BY THE ORDER OF CIT (A), ASSESSEE IS IN APPEAL BEFORE US. 4. IN THE GROUNDS RAISED, THE MAIN CONTENTION OF TH E ASSESSEE IS THAT THE CIT(A) OUGHT NOT TO HAVE DECIDED THE APPEA L EX-PARTE CONFIRMING THE ORDER OF AO IGNORING THE REQUEST FOR ADJOURNMENT. 5. AFTER HEARING THE RIVAL CONTENTIONS AND PERUSING T HE MATERIAL AVAILABLE ON RECORD, WE ARE OF THE VIEW THAT LD. C IT(A) WAS NOT JUSTIFIED IN PASSING EX- PARTE ORDER WITHOUT ALLOWI NG PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THEREFORE, IN THE INTEREST OF JUSTICE, WE CONSIDER IT FAIR AND REASONABLE THAT ONE MORE OP PORTUNITY BE PROVIDED TO THE ASSESSEE TO REPRESENT ITS CASE BEFO RE THE LD. CIT(A). HOWEVER, SINCE THE ASSESSEE SEEMS TO HAVE NO REGARD FOR THE INCOME TAX PROCEEDINGS AS SEEN BY ITS NON-REPRESENTATION B EFORE CIT(A) ON VARIOUS DATES OF HEARING, WE DIRECT THE CIT(A) TO D ISPOSE OFF THE APPEAL WITHIN A PERIOD OF SIX MONTHS. THE ASSESSEE SHOULD BE MADE TO REALIZE THAT DISREGARD FOR TAX LAWS WILL NOT BE TAKEN LIGHTLY. ACCORDINGLY WE SET ASIDE THE ORDER PASSED BY THE LD . CIT(A) AND RESTORE THE MATTER TO HIS FILE WHO SHALL DECIDE THE SAME AFRESH AND 3 ITA NO. 1827/HYD/2011 FUSION TECHNOLOGIES (INDIA) PVT. LTD. ACCORDING TO LAW AFTER PROVIDING A REASONABLE OPPOR TUNITY OF BEING HEARD TO THE ASSESSEE HAVING IN MIND THAT THE APPEA L IS TO BE ADJUDICATED WITHIN SIX MONTHS. THE GROUNDS TAKEN BY THE ASSESSEE ARE, THEREFORE, ALLOWED FOR STATISTICAL PURPOSE. 6. IN THE RESULT, APPEAL OF ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON 3 RD MARCH, 2015 SD/- SD/- (P.M. JAGTAP) (ASHA VIJAYARAG HAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED: 3 RD MARCH, 2015 KV COPY TO:- . 1. FUSION TECHNOLOGIES (INDIA) PVT. LTD., C/O RAMU & RAVI, 814, 8 TH FLOOR, RAGHAVA RATNA TOWERS, CHIRAG ALI LANE, ABIDS, HYDERABAD 500 001. 1. INCOME-TAX, WARD - 1(2), AAYAKAR BHAVAN, L.B. STADIUM ROAD, BASHEERBAGH, HYDERABAD 500 004. 3. CIT(A)-III, HYDERABAD 11. CIT-I, HYDERABAD 12. THE DR, ITAT, HYDERABAD