Skylark Urban Development Pvt. Ltd., Mohali V. ITO, W-6(4), Mohali

ITA 192/CHANDI/2019

• Counselvise Citation: [2022] 106 COUNSELVISE.COM (IT) 7984 (ITAT-CHANDIGARH)
• Duration Of Justice: 3 year(s) 3 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2012-2013
• Appeal Filed On: 21-02-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 144

Judgement Text

आयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरणआयकर अपीलीय अिधकरण आयकर अपीलीय अिधकरण,च瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठच瀃डीगढ़ 瀈यायपीठ च瀃डीगढ़ 瀈यायपीठ ‘‘बी बीबी बी.’’, च瀃डीगढ़ च瀃डीगढ़च瀃डीगढ़ च瀃डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘B’ CHANDIGARH BEFORE: SMT. DIVA SINGH, JUDICIAL MEMBER & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर आयकरआयकर आयकर अपील अपीलअपील अपील सं संसं सं./ ITA No. 192/CHD/2019 Assessment Year : 2012-13 M/s Skylark Urban Development P.Ltd., SCO 1-2, Skylark Enclave, Sector 115, Mohali. बनाम VS The ITO, Ward 6(4), Mohali. 瀡थायी लेखा सं./PAN /TAN No: AAOCS0463L अपीलाथ牸/Appellant 灹瀄यथ牸/Respondent आयकर आयकरआयकर आयकर अपील अपीलअपील अपील सं संसं सं./ ITA No. 193/CHD/2019 Assessment Year : 2012-13 M/s Skylark Geophytes P.Ltd., Sector 115, Mohali. बनाम VS The ITO, Ward 6(4), Mohali. 瀡थायी लेखा सं./PAN /TAN No: ABMFS4442H अपीलाथ牸/Appellant 灹瀄यथ牸/Respondent िनधा榁琇रती क琉 ओर से/Assessee by : Shri T.N.Singla, CA राज瀡व क琉 ओर से/ Revenue by : Dr. Ranjeet Kaur,Sr. DR तारीख/Date of Hearing : 28.04.2022 उदघोषणा क琉 तारीख/Date of Pronouncement : 13.06.2022 आदेश आदेशआदेश आदेश/ORDER PER DIVA SINGH The present appeals have been filed by the respective assessees assailing the correctness of the separate orders dated 15.02.2017 of CIT(A)-2, Chandigarh pertaining to 2012-13 assessment years respectively. In each of the appeals, various ITA 192&193 /CHD/2019 A.Y. 2017-18 Page 2 of 4 grounds have been raised by the assessee assailing the additions made by the AO while passing the orders u/s 144 of the Act which have been sustained by the CIT(A) in appeal for want of supportive evidence. 2. The ld. AR Mr.T.N.Singla appearing on behalf of the assessee invited attention to the assessment orders u/s 144 of the Act which are dated 25.03.2015 in the respective appeals. It was submitted that before the Assessing Officer, the assessee was unable to participate in the proceedings as on account of financial failure of his business he was running helter and skeltor to arrange moneys and ensure that his business should not close down. It was elaborated that the assessee was a builder, a developer of properties when the going was good. However, on account of a downward trend in this line of business, the business of the assessee despite his best efforts to address the financial situations ultimately was failing and hence the properties of the assessee were acquired by the banks. Physical possession was taken by the bank under the SARFAESI Act on 14.01.2014 and 21.01.2014 of the assessee's companies. It was his submission that before the business assets of the assessee were disposed off, there was a fairly long period where the assessee remained running in order to arrange and secure funds. The assessee went through the entire gamut of exercise to get the loans restructured and somehow make ITA 192&193 /CHD/2019 A.Y. 2017-18 Page 3 of 4 good the payments etc., unfortunately despite this exercise, the assessee was unsuccessful. Ultimately, failing in the attempts, the properties were taken up by the bank. Copy of the e- auction of the immovable properties of the assessee on 06.09.2018 was filed and relied upon. 2.1 Accordingly, in the circumstances, it was his submission that the assessee could not participate in the proceedings before the tax authorities. In the said background, it was his limited prayer that the issues may be remanded back to the AO in order to enable the assessee to explain and address the facts as admittedly before the CIT(A), no evidences could be filed and the assessment made by the AO is also made u/s 144 of the Act. 3. The ld. Sr.DR considering the evidence on record and the facts on record and as pleaded did not pose any objection to the prayer for remand. 4. We have heard the rival submissions and perused the material available on record. In the light of the prayer of the parties before the Bench and considering the facts, it is deemed appropriate to set aside the impugned orders and the issues back to the file of the AO with the direction to pass a speaking order in accordance with law after giving the assessee a reasonable and effective opportunity of being heard. The ITA 192&193 /CHD/2019 A.Y. 2017-18 Page 4 of 4 assessee in its own interests is advised not to abuse the trust reposed in it and participate in the proceedings fully and fairly. It is made clear that in the eventuality of the abuse of the trust reposed, the AO shall be at liberty to pass an order on the basis of material available on record. Said order was pronounced in the Open Court at the time of hearing itself. 5. In the result, the appeals of the assessees are allowed for statistical purposes. Order pronounced on 13 th June,2022. Sd/- Sd/- (VIKRAM SINGH YADAV) (DIVA SINGH) लेखा लेखालेखा लेखा सद瀡य सद瀡यसद瀡य सद瀡य/ Accountant Member 瀈याियक 瀈याियक瀈याियक 瀈याियक सद瀡य सद瀡यसद瀡य सद瀡य/ Judicial Member “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2. 灹瀄यथ牸/ The Respondent 3. आयकर आयु猴/ CIT 4. आयकर आयु猴 (अपील)/ The CIT(A) 5. िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड榁 फाईल/ Guard File 7. आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar