M/s Hiran Tobacco Factory, Kanpur V. Dy. Commissioner of Income Tax-I, Kanpur

ITA 184/LKW/2014

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 78494 (ITAT-LUCKNOW)
• Duration Of Justice: 1 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2014
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2001-2002
• Appeal Filed On: 21-03-2014
• Court: TRIBUNAL
• Department Lawyers: ALOK MITRA
• 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. 184/LKW/2014 ASSESSMENT YEAR: 2001 - 02 M/S HIRAN T OBACCO FACTORY 66, TURNER ROAD CANTO NMENT, KANPUR V. DY. CIT - I KANPUR PAN: AABPH5067P (APP ELL ANT) (RESPONDENT) APP ELL ANT BY: SHRI. PRADEEP SETH, FCA RESPONDENT BY: SHRI. ALOK MITRA, D.R. DATE OF HEARING: 06.05.2014 DATE OF PRONOUNCEMENT: 0 6 .0 5 .2014 O R D E R PER SUNIL KUMAR YA DAV: THIS APPEAL IS PREFERRED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A), INTER ALIA, ON VARIOUS GROUNDS, WHICH ARE AS UNDER: - 1 ) THAT THE LEARNED C.I.T.(APPEALS) HAS ERRED IN LAW AND ON FACTS IN DISMISSING THE APPEAL EX - PARTE IN A SUMMARY MANNER WITHOUT ALLOWING REASONABLE OPPORTUNITY OF BEING HEARD AS REQUIRED BY LAW. 2 ) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW IN REJECTING THE APPLICATION FOR ADJOURNMENT OF HEARING FIXED ON 23.12.2013 ON THE GROUND THAT THE COUNSEL WAS AWAY TO JAI PUR FROM 23ST TO 25TH TO ATTEND THE WEDDING OF GRANDSON OF A VERY CLOSE FAMILY FRIEND. THE ABOVE APPLICATION HAD BEEN DRAFTED BY THE COUNSEL ON 20.12.2013 BEFORE LEAVING FOR JAIPUR. THE COUNSEL'S JUNIOR PRESENTED THE ABOVE APPLICATION AND INFORMED THAT THE COUNSEL WAS OUT OF STATION AND SHALL RETURN ON 26TH OF DECEMBER 2013. INSPITE OF THE ABOVE THE LEARNED C.I.T. ARBITRARILY ADJOURNED THE SAME TO 24.12.2013 TO FILE WRITTEN SUBMISSIONS. PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 2 - : 3 ) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON FACTS IN NOT COMPLYING WITH THE STATUTORY PROVISIONS OF SECTION 250(6) OF THE I.T. ACT AND THE PRINCIPLES OF NATURAL JUSTICE IN NEITHER STATING THE FACTS REGARDING EACH GROUND OF APPEAL, NOR HIS DECISION THEREON NOR DETAILED REASON FOR SUCH DECISION AND IN ACCE PTING THAT HE WAS UPHOLDING THE ASSESSMENT ORDER AND DISMISSING THE GROUNDS OF APPEAL SINCE THERE WAS NO MATERIAL AVAILABLE TO TAKE A VIEW OTHER THAN WHAT HAS BEEN DONE BY THE LEARNED A.O. 4 ) THAT THE LEARNED C.I.T.(APPEALS) HAS FURTHER ERRED IN LAW AND ON F ACTS IN IGNORING THE STATEMENT OF FACTS FILED BEFORE HIM WITH MEMORANDUM OF APPEAL WHICH WAS DULY SUPPORTED BY ASSESSEE'S WRITTEN REPLIES MENTIONED THEREIN WHICH HAVE BEEN TOTALLY IGNORED WHILE DECIDING THE APPEAL. 5 ) THAT THE LEARNED C.I.T.(APPEALS) HAS FUR THER ERRED IN LAW AND ON FACTS IN CONFIRMING THE FOLLOWING ADDITIONS/DISALLOWANCES . 2 . DURING THE COURSE OF HEARING OF THE APPEAL, THE LD. COUNSEL FOR THE ASSESSEE HAS CONTENDED THAT THE LD. CIT(A) HAS DISMISSED THE APPEAL OF THE ASSESSEE IN LIMINE WITHOUT A DJUDICATING THE GROUNDS RAISED BEFORE HIM ON MERIT. THOUGH HE HAS WRITTEN IN HIS ORDER THAT FINAL OPPORTUNITY WAS GIVEN, BUT IN FACT HE HAS GIVEN ONLY ONE EFFECTIVE OPPORTUNITY OF HEARING. THE LD. COUNSEL FOR THE ASSESSEE HAS FURTHER CONTENDED THAT SINCE THE LD. CIT(A) HAS DISMISSED THE APPEAL IN LIMINE WITHOUT ADJUDICATING THE ISSUES ON MERIT, THE MATTER MAY BE RESTORED BACK TO HIM FOR ADJUDICATING THE GROUNDS OF APPEAL ON MERIT. 3 . THE LD. D.R. HAS PLACED RELIANCE UPON THE ORDER OF THE LD. CIT(A). 4 . HAVING H EARD THE RIVAL SUBMISSIONS AND FROM A CAREFUL PERUSAL OF THE ORDER OF THE LD. CIT(A), WE FIND THAT THE LD. CIT(A) HAS REPRODUCED THE GROUNDS OF APPEAL IN HIS ORDER AND THEREAFTER IN ONE SMALL PARA , HE DISCUSSED THE DATES OF HEARING AND DISMISSED THE APPEAL IN LIMINE. UNDER THE INCOME - TAX ACT, THE LD. CIT(A) IS NOT EMPOWERED TO DISMISS THE APPEAL PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ ) : - 3 - : IN LIMINE. HE IS REQUIRED TO ADJUDICATE THE ISSUES RAISED BEFORE HIM ON MERIT BY PASSING A SPEAKING ORDER. THEREFORE, THE LD. CIT(A)S ORDER , DISMISSING THE APPE AL OF THE ASSESSEE IN LIMINE , IS NOT IN ACCORDANCE WITH LAW. THUS, WE SET ASIDE THE ORDER O F THE LD. CIT(A) AND RESTORE THE MATTER TO HIS FILE WITH A DIRECTION TO ADJUDICAT E THE GROUNDS OF APPEAL ON MERIT AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE BY PASSING A SPEAKING ORDER WITHIN A PERIOD OF SIX MONTHS FROM THE DATE OF RECEIPT OF THIS ORDER. THE ASSESSEE IS ALSO DIRECTED TO EXTEND ALL SORT OF CO - OPERATION AND COMPLIANCE OF THE DIRECTIONS ISSUED BY THE LD. CIT(A) DURING THE COURSE OF HEAR ING THE APPEAL. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 6.5.2014 AT THE TIME OF CONCLUSION OF HEARING. S D/ - S D/ - [ A. K. GARODIA ] [ S UNIL KUMAR Y ADAV ] ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 7 TH MAY , 2014 JJ: 0605 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT(A) 4 . CIT 5 . DR ASSISTANT REGISTRAR PRINT TO PDF WITHOUT THIS MESSAGE BY PURCHASING NOVAPDF ( HTTP://WWW.NOVAPDF.COM/ )