M/S ZYDUS TAKEDA HEATHCARE PVT LTD., NAVI MUMBAI V. DCIT 15 (3)(1), MUMBAI

ITA 188/MUM/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 9850 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2013-2014
• Appeal Filed On: 07-01-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: T S K ALSA
• Assessee Lawyers: ANIL BHOSALE
• Keywords: Principle of natural justice; Set aside
• Section: 143(3); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI BEFORE SHRI M BALAGANESH, ACCOUNTANT MEMBER & SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 188/MUM/2020 (A.Y: 2013-14) M/S. ZYDUS TAKEDA HEALTHCARE PVT LTD., C-4, MIDC VILLAGE, PANVEL THANE ROAD, NAVI MUMBAI 400705 VS. DCIT 15(3)(1) R.N. 451, 4 TH FLOOR, AAYAKAR BHAVAN, MK ROAD, MUMBAI. PAN/GIR NO. : AAACZ0736D APPELLANT .. RESPONDENT APPELLANT BY : SHRI ANIL BHOSALE, AR RESPONDENT BY : SHRI T.S KALSA , DR DATE OF HEARING 19 .0 7 .2021 DATE OF PRONOUNCEMENT 19 .0 7 .2021 / O R D E R PER PAVAN KUMAR GADALE, JM: THE APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORD ER OF THE COMMISSIONER OF INCOME TAX (APPEALS) -24 MUM BAI, PASSED U/S. 143(3) R.W.S AND 250 OF THE INCOME TAX ACT, 1961. THE ASSESSEE HAS RAISED THE FOLLOWING GROUND S OF APPEAL: 1. THE CIT(A) ERRED IN CONFIRMING DISALLOWANCE OF REPAIRS AND MAINTENANCE OF BUILDING AND PLANT & MACHINERY AGGREGATING TO RS. 11,54,092/- ON THE GROUND THAT T HE SAID EXPENDITURE IS CAP8ITAL IN NATURE. ITA NO. 188/MUM/2020 ZYDUS TAKEDA HEALTHCARE PVT LTD., MUMBAI - 2 - 2. THE CIT(A) WITHOUT GIVING SUFFICIENT OPPORTUNIT Y OF BEING HEARD, ERRED IN DISPOSING THE APPEAL EXPARTE VIDE H IS ORDER DATED 31.10.2019. 3. THE CIT(A) FAILED TO APPRECIATE THAT TWO NOTICE S ISSUED ON 4 TH SEPTEMBER 2019 AND 25 TH OCTOBER 2019 WERE SENT ON THE E-MAIL ADDRESS OF THE RETIRED MANAGING DIRECTOR AND THEREFORE, THE SAID E-MAIL WAS DISABLED ON HIS RETIREMENT ON 3 1 ST OCTOBER 2018. HENCE NO NOTICE OF HEARING WAS EVER SERVED O R ISSUED TO THE ASSESSEE COMPANY AND HENCE THE EXPARTE ORDER OF THE COMMISSIONER (APPEALS) IS BAD IN LAW AND WITHOUT JU RISDICTION. 4. YOUR APPELLANT CRAVES LEAVE TO ADD TO, ALTER, A MEND OR DELETE ANY OF THE FOREGOING GROUNDS OF APPEAL. 2. AT THE TIME OF HEARING, THE LD.AR SUBMITTED THAT THE LD.CIT(A) HAS PASSED AN EX PARTE FOR NON PROSECU TION OF APPEAL BY THE ASSESSEE AND PRAYED FOR ONE MORE OPPORTUNITY OF HEARING BEFORE CIT(A) AND HAS A GOOD CASE ON MERITS. CONTRA, THE LD. DR SUPPORTED THE ORDER O F THE CIT(A). 3. WE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL ON RECORD. PRIMA-FACIE THE CIT(A) HAS PAS SED THE EX-PARTE ORDER CONSIDERING THE FACT THAT THERE IS N O APPEARANCE IN SPITE OF PROVIDING ADEQUATE OPPORTUNI TY OF HEARING AND NOTICES WERE ISSUED ON 4-09-2019 & 25-1 0- 2019.THEREFORE,THECIT(A) WAS OF THE OPINION THAT TH E ASSESSEE IS NOT INTERESTED/SERIOUS IN PROSECUTING T HE APPEAL AND DISMISSED THE APPEAL EX-PARTE CONSIDERIN G THE MATERIAL AVAILABLE ON RECORD. WE ON PERUSAL OF THE CIT(A) ITA NO. 188/MUM/2020 ZYDUS TAKEDA HEALTHCARE PVT LTD., MUMBAI - 3 - FOUND THAT THE LD.CIT(A) HAS ISSUED THE NOTICE OF H EARING, BUT THERE WAS NO RESPONSE AND THUS THE LD.CIT(A) CA ME TO A CONCLUSION THAT THE ASSESSEE IS NOT INCLINED TO P URSUE THE APPEAL. WE FIND THAT THE ASSESSEE COMPANY HAS R AISED GROUNDS OF APPEAL CHALLENGING ADDITIONS OF THE A.O. AND THERE COULD BE VARIOUS REASONS FOR NON APPEARANCE O NE BEING THE NOTICE WAS SENT TO EMAIL ADDRESS OF RETIR ED MANAGING DIRECTOR.WE CONSIDERING THE PRINCIPLES OF NATURAL JUSTICE SHALL PROVIDE ONE MORE OPPORTUNITY OF HEARING TO THE ASSESSEE TO SUBSTANTIATE ITS CASE BE FORE THE CIT(A) ALONG WITH EVIDENCES AND INFORMATION. ACCORD INGLY, WE SET ASIDE THE ORDER OF THE CIT(A) AND REMIT THE ENTIRE DISPUTED ISSUES TO THE FILE OF THE CIT(A) TO ADJUDI CATE AFRESH ON MERITS AND THE ASSESSEE SHOULD COOPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF T HE APPEAL AND ALLOW THE GROUNDS OF APPEAL OF THE ASSES SEE STATISTICAL PURPOSES. 4. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 19.07.2021 SD/- SD/- ( M BALAGANESH ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER ITA NO. 188/MUM/2020 ZYDUS TAKEDA HEALTHCARE PVT LTD., MUMBAI - 4 - MUMBAI, DATED 19.07.2021 KRK, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. / THE CIT(A) 4. ( ) / CONCERNED CIT 5. !!' , $ % , / DR, ITAT, MUMBAI 6. () * + / GUARD FILE. / BY ORDER, ! //TRUE COPY// 1. ( ASST. REGISTRAR) ITAT, MUMBA I