Sh. Bhushan Gupta, Chandigarh V. ITO Ward 5(3), Chandigarh

ITA 19/CHANDI/2022

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 1607 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-05-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2016-2017
• Appeal Filed On: 27-01-2022
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 27; 11

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ “एकल सद यीय’, च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘SMC’ CHANDIGARH ीमती दवा संह, या#यक सद य BEFORE: SMT. DIVA SINGH, JM आयकर अपील सं./ ITA No. 19,20 & 21/CHD/2022 नधा रण वष / Assessment Year : 2016-17 Shri Bhushan Gupta, SCO 47, Burail, Sector 45-A,Chandigarh. Versus The ITO, Ward-5(3), Chandigarh. थायी लेखा सं./PAN No: ATBPG0589L अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri Ajay Jain, C.A. राज व क ओर से/ Revenue by : Dr. Ranjit Kaur, Sr.DR स ु नवाई क तार$ख/Date of Hearing : 18.05.2022 उदघोषणा क तार$ख/Date of Pronouncement : 20.05.2022 आदेश/ORDER Th e p r e s e n t a p p e a l s h a v e b e e n f i l e d b y t h e a s s e s s e e w h e r e i n t h e c o r r e c t n e s s o f t h e s e p a r a t e o r d e r d a t e d 2 1 . 1 2 . 2 0 2 1 , 2 1 . 1 2 . 2 0 2 1 a n d 2 2 . 1 2 . 2 0 2 1 r e s p e c t i v e l y i s a s s a i l e d o n t h e r e s p e c t i v e g r o u n d s . E a c h o f t h e s e a p p e a l s p e r t a i n t o 2 0 1 6 - 1 7 a s s e s s m e n t y e a r w h e r e i n t h e c h a ll e n g e i s r e s p e c t i v e l y p o s e d t o t h e o r d e r s p a s s e d b y t h e N F A C i . e . N a t i o n a l F a c e l e s s A p p e a l C e n t r e ) w h e r e i n t h e p e n a l ty i m p o s e d u / s 2 7 1 1 ) ( b ) ; 2 7 1 ( 1 ) ( c ) a n d 2 7 1 B o f t h e A c t w h i c h ha s b e e n l e v i e d b y t h e A O h a s b e e n c o n f i r m e d i n a p p e a l . ITA/19-20-21/CHD/2022 A.Y. 2016-17 Page 2 of 5 2 . Th e s e s pe ci f ic a p pe a l s ca me up fo r h e a r i n g on 11. 0 5 .2 0 2 2 on w h i ch d a te a n a d jo ur n me nt a p p l i ca ti on h a d b e e n mo ve d on b e h a l f of th e a s s e ss ee . A d jo ur n me n t w a s gr a n t e d . Th e l d . S r .D R w a s r e q ui r e d t o a d d r e s s th e f a ct th a t a s pe r r e c or d b e f ore th e C I T( A ), the a s se ss ee w a s p os si b ly n ot r e p r e s e n te d. 3 . I n th e s a i d b a ck gr ou n d, t he a p p e a l c a me u p fo r he a r i ng on th e ne xt d a te whe n th e c ou ns e l w a s p r e s e n t. Mr . A jay J a i n a p p e a r i n g on b e ha l f o f th e a s se sse e re q u e s te d f or re ma n d b a c k of th e is su e s t o th e fi l e of th e AO st a ti ng t ha t t he a sse ssee th ou gh p a r tl y a p pe a r s to h a ve gi ve n so me w ri tt e n s ub mi ss io ns b e f or e the CI T( A ) , h ow e v e r , o n a c cou nt o f l a c k of effe c ti ve op p or tu n i ty of b e i n g h e a r d , fu l l fa c ts ca n va s s e d were n ot a p p r e c ia t e d . I n v iti n g a t te n ti on to th e r e sp e c ti ve pe n a lt y o rd e r s, i t w a s hi s su b mi s si on th a t t he a ss e s se e c oul d n ot pa r t ic ip a t e i n th e p r oce e d i ngs b e for e th e AO on a cc ou nt of th e fa ct th a t t he n oti ce s se nt a pp a r e nt ly b y e - ma i l w e r e se nt t o th e e -ma i l I D of th e c ou ns e l r e p r es e n ti ng th e a s se ss e e be fo r e the AO. H o w e v e r , s i n c e t h e a s s e s s e e w a s r e p r e s e n t e d i n i t i a l l y i n t h e a s s e s s m e n t p r o c e e d i n g s b y S h r i P a r a m j i t S i n g h J a i s wa l a n d u l t i m a t e l y b y S h r i A n k u r B a n s a l , F C A w h o a g r e e d t o t h e a d d i t i o n m a d e , w h o a d m i t t e d l y w a s n o t c h a l l e n g e d b y t h e a s s e s s e e i n a p p e a l . T h e n o t i c e s a p p a r e n t l y / p r e s u m ab l y s e n t t o t h e e - m a i l I D o f t h e a s s e s s e e r e m a i n e d u n - r e s p o nd e d t o . I t w a s h i s s u b m i s s i o n t h a t r e m a n d b a c k t o t h e A O w o u l d b e ITA/19-20-21/CHD/2022 A.Y. 2016-17 Page 3 of 5 n e c e s s a r y i n o r d e r t o a d d r e s s t h e f u l l f a c t s . A s an i l l u s t r a t i o n , i t w a s s u b m i t t e d t h a t p e n a l t y u / s 2 7 1B h a s b e e n l e v i e d f o r n o t g e t t i n g t h e a c c o u n t s a u d i t e d . I t w a s h i s s u b m i s s i o n t h a t t h i s c o n c l u s i o n i s c o n t r a r y t o t h e f a c t s a s b e f o r e t h e F i r s t A p p e l l a t e A u t h o r i t y , i t w a s s t a t e d t h a t c o p y o f a u d i t e d a c c o u n t s w e r e p l a c e d o n r e c o r d b e f o r e t he A O . H o w e v e r , s i n c e “the assessee was not heard and since the hearing was through written submissions, the assessee had no occasion to invite attention to the filing of the audited accounts on the ITBA Portal.” I t w a s h i s su b m i s si on t ha t t he a s se s se e h a d t he oc ca s io n t o ge t a c cou n ts a ud i te d and h a d f i le d th e s a me by e -m a i l . C e r t a in n u a n ce s w h i ch th e a s sesse e w ou l d l ik e to a r gue on th e ba s i s of r e cor d i n th e ot he r ap p e a l s a ls o, i t w a s h is p r a y e r th a t r e ma n d b a ck t o the A O ma y b e d ir e c te d . 4 . Th e l d . Sr . D R Ms . P r i ya n k a D h a r a p p e a ri n g on b e ha l f of t he Re ve nue i n it ia l l y i n si st e d th a t r e ma nd b e ma d e t o th e C I T( A) , h ow e v e r , i n the fa c e of the re c or d w he re in e a c h of th e pe na l ty or d e r t he a ss e s see r e ma i n e d un r e p r e se n te d , s he d id n ot f u rt he r i ns i st o n th e r e m a n d ba ck t o t he C I T( A) . 5 . I h a ve h e a r d t h e s u b m i s s i o n s a n d p e r u s e d t h e m a te r i a l o n r e c o r d . I n t he f a c t s o f t h e p r e s e n t c a se , i t i s s ee n t h a t t he a s s e s se e r e t u r ne d a n i n c o m e o f R s . 5 , 4 8 , 8 6 0 / - . Th e a s se s se e i s s h o w n t o b e d e a l i n g i n t r a d in g of e l e ct r ic a l g o o d s l i k e e l e c t r i c a l s w i t c h e s / s o c k e t s a n d f a n s e t c . T h e a s s es s e e ITA/19-20-21/CHD/2022 A.Y. 2016-17 Page 4 of 5 i s s t a t e d t o b e a n u n d e r - g r a d u a t e n o t h a v i n g a n y k no w l e d g e o f a c c o u n t s a n d h e n c e , s t a t e d t o b e f u l l y d e p e n d a n t o n h i s a c c o u n t a n t / c o u n s e l . C o n s i d e r i n g t h e G P a n d N P r a t es , t h e a s s e s s e e a g r e e d t o o f f e r h i g h e r p e r c e n t a g e o f p r o f it a s a r e s u l t t h e r e o f , a d d i t i o n o f R s . 1 7 , 4 3 , 5 8 5 / - w a s a g r ee d t o . I t i s a m a t t e r o f f a c t t h a t t h e a d d i t i o n w a s n o t c h a l le n g e d b y t h e a s s e s s e e i n a p p e a l . T h e r e s p e c t i v e p e n a l t i e s ha v e b e e n l e v i e d u p o n t h e a s s e s s e e w h e r e i n b e f o r e t h e A O , n o p a r t i c i p a t i o n w a s m a d e . 6 . C o n s i d e r i n g t h e s u b m i s s i o n s o f t h e p a r t i e s b e f o re t h e B e n c h w h e r e i n t h e a r g u m e n t s w e r e t h a t t h e n o t i c e s we r e n e v e r r e c e i v e d b y t h e a s s e s s e e a s t h e s e w e r e s e n t on t h e e - m a i l I D o f h i s c o u n s e l . A c c o r d i n g l y , i n t h e i n t e r es t s o f s u b s t a n t i a l j u s t i c e , t h e i m p u g n e d o r d e r s a r e s e t a si d e a s t h e a s s e s s e e a d m i t t e d l y d i d n o t h a v e a n e f f e c t i v e o p p o rt u n i t y o f b e i n g h e a r d . T h e i s s u e s a r e r e s t o r e d b a c k t o t h e fi l e o f t h e A O d i r e c t i n g t h e a s s e s s e e t o e n s u r e f u l l a n d p r o p e r p a r t i c i p a t i o n a n d n o t a b u s e t h e t r u s t r e p o s e d . T h e A O , a c c o r d i n g l y , s h a l l p a s s a n o r d e r i n a c c o r d a n c e w i t h l a w a f t e r g i v i n g t h e a s s e s s e e a r e a s o n a b l e o p p o r t u n i t y o f b e in g h e a r d . W h i l e s o r e s t o r i n g , i t i s m a d e c l e a r t h a t t h e i n t he e v e n t u a l i t y o f a b u s e o f t h e t r u s t r e p o s e d i n t h e a ss e s s e e , t h e A O s h a l l b e a t l i b e r t y t o p a s s t h e o r d e r o n t h e b a si s o f t h e m a t e r i a l a v a i l a b l e o n r e c o r d . ITA/19-20-21/CHD/2022 A.Y. 2016-17 Page 5 of 5 7 . S a i d o r d e r w a s p r o n o u n c e d i n t he O p e n C o u r t a t th e t i me o f h e a r i n g i t se l f . 8 . I n t h e r e s u l t , t h e a p p e a l s o f t h e a s s e s s e e a r e al l o w e d f o r s t a t i s t i c a l p u r p o s e s . O r d e r p r o n o u n c e d i n t h e O p e n C o u r t o n 2 0 t h M a y , 2 0 2 2 . S d / - ( दवा संह ) (DIVA SINGH) या#यक सद य/Judicial Member “प ू नम” आदेश क त*ल+प अ,े+षत/ Copy of the order forwarded to : 1. अपीलाथ / The Appellant – 2. यथ / The Respondent 3. .आयकर आय ु -त/ CIT 4. आयकर आय ु -त (अपील)/ The CIT(A) 5. +वभागीय त न0ध, आयकर अपील$य आ0धकरण, च2डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar