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ITA 1911/HYD/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 91607 (ITAT-HYDERABAD)
• Duration Of Justice: 4 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-04-2015
• Appeal Filed By: Assessee
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 22-12-2014
• Court: TRIBUNAL
• Department Lawyers: RAMAKRISHNA BANDI
• Assessee Lawyers: A V RAGHURAM
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCHES A, HYDERABAD BEFORE SHRI P.M. JAGTAP, ACCOUNTANT MEMBER AND SHRI SAKTIJIT DEY, JUDICIAL MEMBER I.T.A. NO. 1911/HYD/2014 ASSESSMENT YEAR: 2009-10 M/S. IGATE INFORMATION SERVICES PRIVATE LIMITED (FORMERLY KNOWN AS PATNI TELECOM SOLUTIONS PVT. LTD) HYDERABAD [PAN: AACCA4255G] VS INCOME TAX OFFICER , WARD-2(1), HYDERABAD (APPELLANT) (RESPONDENT) FOR ASSESSEE : SHRI A. V. RAGH U R A M , AR FOR REVENUE : S HRI RAMA KRISHNA, BANDI, DR DATE OF H EARING : 2 7 - 0 4 - 201 5 DATE OF PRONOUNCEMENT : 29 - 04 - 2015 O R D E R PER SAKTIJIT DEY, J.M. : THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDE R DATED 07-10-2014 PASSED BY LD. COMMISSIONER OF INCOME TAX (APPEALS)-III, HYDERABAD FOR THE ASSESSMENT YEAR (AY) 2009-10. TH E EFFECTIVE GROUNDS RAISED BY THE ASSESSEE ARE AS UNDER: '1. THE ORDER OF THE LEARNED CIT(A) IN DISMISSING T HE APPEAL AS INFRUCTUOUS IS CONTRARY TO SETTLED PRINCIPLES OF L AW. 2. THE LEARNED CIT(A) ERRED IN DISMISSING THE APPE AL WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE TO RECTIF Y THE DEFECT IN FORM 35. 3. WITHOUT PREJUDICE TO THE ABOVE THE LEARNED CIT( A) ERRED IN NOT CONSIDERING THAT THE ORDER OF THE AO IS CONTRARY T O DECISIONS FOR I.T.A. NO. 1911/HYD/2014 M/S. IGATE INFORMATION SERVICES PVT LTD., :- 2 -: EARLIER YEARS IN THE ASSESSEE'S OWN CASE, CONTRARY TO THE DECISION OF SUPREME COURT AND ALSO CONTRARY TO CIRCULAR OF CBD T AND THEREFORE OUGHT TO HAVE ALLOWED THE APPEAL'. 2. AS CAN BE SEEN, THE FIRST ISSUE AS RAISED IN GRO UNDS 1 & 2 RELATES TO DISMISSAL OF ASSESSEE'S APPEAL IN LIMINE BY TREATIN G THE SAME AS INFRUCTUOUS. 3. BRIEFLY THE FACTS ARE, ASSESSEE, AN INDIAN COMPA NY IS ENGAGED IN THE BUSINESS OF DEVELOPMENT AND EXPORT OF COMPUTER SOFTWARE. FOR THE ASSESSMENT YEAR UNDER CONSIDER, ASSESSEE FILED ITS RETURN OF INCOME ON 30-09-2009 DECLARING LOSS AT RS. 12,43,63,661/-. I NITIALLY, ASSESSMENT IN CASE OF THE ASSESSEE WAS COMPLETED U/S. 143(3) O F THE INCOME TAX ACT (ACT) VIDE ORDER DT. 30-12-2011 BY DISALLOWING THE CLAIM OF DEDUCTION U/S. 10A OF THE ACT. HOWEVER, THE SAID ASSESSMENT ORDER WAS SET ASIDE TO THE FILE OF ASSESSING OFFICER (AO) FOR EXAMINING ASSESSEE'S CLAIM OF DEDUCTION U/S. 10A OF THE ACT. IN PURSUANCE TO THE DIRECTION OF APPELLATE AUTHORITY, THE AO COMPLETED THE ASSESSMENT OVER AGA IN VIDE ORDER DT. 24-07-2014 DETERMINING THE BOOK PROFIT AT RS. 2 ,84,98,731/-. AGAINST THE SAID ASSESSMENT ORDER, ASSESSEE PREFERR ED AN APPEAL BEFORE THE LD.CIT(A). LD.CIT(A) HOWEVER, DISMISSED THE A PPEAL OF THE ASSESSEE AS INFRUCTUOUS ON THE REASON THAT APPEAL MEMO WAS N OT SIGNED AND VERIFIED BY THE COMPETENT PERSON I.E., THE MANAGING DIRECTOR OF THE COMPANY. 4. WE HAVE HEARD THE PARTIES AND PERUSED THE MATERI ALS ON RECORD. THE LD. AR SUBMITTED BEFORE US, LD.CIT(A) WAS NOT J USTIFIED IN DISMISSING THE APPEAL EX-PARTE WITHOUT ALLOWING AN OPPORTUNITY TO THE ASSESSEE TO RECTIFY THE DEFECT IN THE APPEAL MEMO. FURTHER, HE SUBMITTED THAT THE COMPANY HAS NO MANAGING DIRECTOR, HENCE AN Y DIRECTOR OF THE COMPANY IS COMPETENT TO SIGN AND VERIFY THE APPEAL MEMO. THE LD. DR I.T.A. NO. 1911/HYD/2014 M/S. IGATE INFORMATION SERVICES PVT LTD., :- 3 -: ON THE OTHER HAND SUBMITTED SINCE THE APPEAL FILED BY THE ASSESSEE WAS DEFECTIVE, LD.CIT(A) HAS DISMISSED THE APPEAL AS IN FRUCTUOUS. HAVING CONSIDERED THE SUBMISSIONS OF THE PARTIES, WE ARE O F THE VIEW THAT THE LD.CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEA L WITHOUT AFFORDING AN OPPORTUNITY TO THE ASSESSEE TO RECTIFY/EXPLAIN THE DEFECT AS ALLEGED TO BE IN THE APPEAL MEMO FILED BY THE ASSESSEE. THUS, TH E ORDER PASSED BY THE LD.CIT(A) BEING IN GROSS VIOLATION OF NATURAL JUSTI CE, DESERVES TO BE SET ASIDE. IT WAS SUBMITTED BY LD. AR BEFORE US THAT T HE COMPANY HAS NO MANAGING DIRECTOR HENCE, ANY DIRECTOR OF THE COMPAN Y IS COMPETENT TO SIGN AND VERIFY THE APPEAL MEMO. IN OUR VIEW, THES E FACTS CAN BE EXPLAINED BY THE ASSESSEE BEFORE THE FIRST APPELLAT E AUTHORITY. IN VIEW OF THE AFORESAID, WE ARE INCLINED TO SET ASIDE THE IMP UGNED ORDER OF LD.CIT(A) AND REMIT THE MATTER BACK TO HIS FILE FOR DECIDING AFRESH ON MERIT AFTER ALLOWING OPPORTUNITY TO THE ASSESSEE TO RECTIFY/EXPLAIN DEFECT IN THE APPEAL MEMO. IT GOES WITHOUT SAYING LD.CIT( A) MUST AFFORD REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. 5. AS WE HAVE REMITTED THE MATTER BACK TO THE FILE OF LD.CIT(A) FOR DECIDING ON MERIT, WE DECLINE TO ADJUDICATE GROUND NO.3. 6. IN THE RESULT, ASSESSEE'S APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON 29 TH APRIL, 2015. SD/- SD/- (P.M. JAGTAP) (SAKTIJIT DEY) ACCOUNTANT MEMBER JUDICIAL MEMBER HYDERABAD, DATED 29 TH APRIL, 2015 TNMM I.T.A. NO. 1911/HYD/2014 M/S. IGATE INFORMATION SERVICES PVT LTD., :- 4 -: COPY TO : 1. M/S. IGATE INFORMATION SERVICES PRIVATE LIMITED, (F ORMERLY KNOWN AS PATNI TELECOM SOLUTIONS PVT. LTD) PHEONIX SPECIAL ECONOMIC ZONE, HITECH CITY 2, PLOT NO. H-07, BEHIND CYBER TOWER GATEWAY, HYDERABAD. C/O. SRI K. VASANTKUMAR & A.V. RAGHURAM, ADVOCATES, 610, 6 TH FLOOR, BABHUKHAN ESTATE, BASHEERBAGH, HYDERABAD. 2. THE INCOME TAX OFFICER, WARD-2(1), ROOM NO. 837, C-BLOCK, 8 TH FLOOR, I.T. TOWERS, HYDERABAD. 3. CIT(APPEALS)-III, HYDERABAD. 4. CIT-II, HYDERABAD. 5. D.R. ITAT, HYDERABAD