Krishnaswamy Nirmala, CHENNAI V. ITO Non Corporate Ward 5(2), CHENNAI

ITA 1861/CHNY/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 0169 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-06-2019
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: B
• Assessment Year: 2013-2014
• Appeal Filed On: 04-06-2018
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: N V BALAJI
• Keywords: Principle of natural justice; Set aside
• Section: 271(1)(c); 143(3); 143(1)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL B BENCH, CHENNAI . , , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ I.T.A.NO.1861/CHNY/2018 / ASSESSMENT YEAR :2013-14 SMT. KRISHNASWAMY NIRMALA, FLAT NO. 6, 189/400, VIRINDAVANAM ENCLAVE, AVVAI SHANMUGAM SALAI, GOPALAPURAM, CHENNAI 600 086. [PAN:AAGPN7514C] VS. THE INCOME TAX OFFICER, NON CORPORATE WARD 5(2), CHENNAI 600 006. ( /APPELLANT ) ( / RESPONDENT ) / APPELLANT BY : SHRI N.V. BALAJI, ADVOCATE / RESPONDENT BY : SHRI GURU BASHYAM, JCIT / DATE OF HEARING : 26.06.2019 /DATE OF PRONOUNCEMENT : 27.06.2019 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 5, CHENNAI DATED 05.04.2018 RELEVANT TO THE ASSESSMENT YEAR 2013-14 PASSED UNDER SECTION 271(1)(C) OF THE INCOME TAX ACT, 1961 [ ACT IN SHORT]. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED HER RETURN OF INCOME FOR THE ASSESSMENT YEAR 2013-14 ON 24.09.2014 ADMITTING TOTAL INCOME OF .7,89,930/-. THE RETURN FILED BY THE ASSESSEE WAS PROCESSED UNDER SECTION 143(1) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT]. SUBSEQUENTLY, THE CASE I.T.A. NO.1861/CHNY/18 2 WAS SELECTED FOR SCRUTINY. AGAINST SERVICE OF STATUTORY NOTICES, THE ASSESSEE FILED THE DETAILS CALLED FOR. AFTER VERIFICATION OF DETAILS FILED BY THE ASSESSEE AND CONSIDERING THE SUBMISSIONS, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT AND DETERMINED THE INCOME OF THE ASSESSEE AT .33,57,224/- AFTER MAKING VARIOUS ADDITIONS. AGAINST THE ADDITIONS, THE ASSESSEE HAS NOT PREFERRED ANY FURTHER APPEAL, BUT, ACCEPTED THE ADDITION AND PAID TAX WITH INTEREST. THEREAFTER, THE ASSESSING OFFICER INITIATED PENALTY PROCEEDINGS AND LEVIED PENALTY UNDER SECTION 271(1)(C) OF THE ACT. AGAINST LEVY OF PENALTY, THE ASSESSEE PREFERRED APPEAL BEFORE THE LD. CIT(A). AFTER CONSIDERING THE FACTS AND WRITTEN SUBMISSIONS FILED BY THE ASSESSEE, THE LD. CIT(A) CONFIRMED THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. THE LD. COUNSEL FOR THE ASSESSEE HAS MAINLY CHALLENGED THAT THE ASSESSEE WAS NOT GIVEN SUFFICIENT OPPORTUNITIES OF BEING HEARD TO PRESENT HER CASE BEFORE THE FIRST APPELLATE AUTHORITY AND PRAYED THAT THE ASSESSEE SHOULD BE GIVEN SUFFICIENT OPPORTUNITY TO PRESENT THE CASE BEFORE THE FIRST APPELLATE AUTHORITY. 4. WE HAVE HEARD BOTH THE SIDES, PERUSED THE MATERIALS AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. THE PENALTY LEVIED UNDER SECTION 271(1)(C) OF THE ACT, THE ASSESSEE PREFERRED FURTHER APPEAL I.T.A. NO.1861/CHNY/18 3 BEFORE THE LD. CIT(A). IT WAS THE CONTENTION OF THE LD. COUNSEL THAT SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE WAS NOT ACCORDED AND BASED ON THE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE, THE LD. CIT(A) CONCLUDED HIS ORDER SHALL NOT MEET THE ENDS OF NATURAL JUSTICE AND PRAYED THAT THE ASSESSEE SHOULD BE GIVEN SUFFICIENT OPPORTUNITIES OF BEING HEARD TO PRESENT HER CASE. WE FIND FORCE IN THE ARGUMENTS OF THE LD. COUNSEL. ON PERUSAL OF THE APPELLATE ORDER, WE FIND THAT THERE IS NO MENTION IN THE APPELLATE ORDER THAT ANY NOTICE UNDER SECTION 250(1) OF THE ACT WAS ISSUED AND SERVED ON THE ASSESSEE OF POSTING THE APPEAL FOR HEARING BEFORE CONCLUDING THE APPELLATE ORDER. THUS, WE ARE OF THE CONSIDERED OPINION THAT THE LD. CIT(A) SHOULD HAVE GIVEN SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE TO PRESENT HER CASE BEFORE CONCLUDING THE APPELLATE ORDER. IN VIEW OF THE ABOVE AND TO MEET THE ENDS OF JUSTICE, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND DIRECT HIM TO GIVE SUFFICIENT OPPORTUNITIES OF BEING HEARD TO THE ASSESSEE AND DECIDE THE ISSUE OF LEVY OF PENALTY AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 27 TH JUNE, 2019 AT CHENNAI. SD/ - SD/ - (S. JAYARAMAN) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, THE 27.06.2019 VM/- I.T.A. NO.1861/CHNY/18 4 /COPY TO: 1. / APPELLANT, 2. / RESPONDENT, 3. ( ) /CIT(A), 4. /CIT, 5. /DR & 6. /GF.