INNOVATIVE AUTOMOVILES P. LTD, MUMBAI V. ITO 15(2)(1), MUMBAI

ITA 1943/MUM/2017

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 9474 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 03-08-2017
• Assessment Year: 2013-2014
• Appeal Filed On: 20-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N HEMALATHA
• Keywords: Opportunity of being heard
• Section: 143(3); 68

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH SMC, MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER ITA NO. 1943/MUM/2017 : A.Y : 2013 - 14 M/S. INNOVATIVE AUTOMOBILES PVT. LTD., GALA NO. C - 12, GROUND FLOOR, KANTILAL MAGNLAL ESTATE, L.B.S. MARG, BHANDUP (W), MUMBAI 400 078 (APPELLANT) PAN : AABCI3326D VS. ITO 15(2)(1), MUMBAI (RESPONDENT) APPELLANT BY : SHRI J.P. BAIRAGRA RESPONDENT BY : MS. N. HEMALATHA DATE OF HEARING : 03 /0 8 /2017 DATE OF PRONOUNCEMENT : 29 /09/2017 O R D E R THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - 2 4 , MUMBAI DATED 14 .1 2 .201 6 , PERTAINING TO THE ASSESSMENT YEAR 201 3 - 1 4 , WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE ASSESSING OFFICER DATED 27 . 03 .201 6 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. THE DISPUTE IN THE PRESENT APPEAL ARISES FROM THE ADDITION OF RS.40,00,000/ - MADE BY THE ASSESSING OFFICER U/S 68 OF THE ACT. AT THE 2 ITA NO. 1943/MUM/2017 M/S. INNOVATIVE AUTOMOBILES PVT. LTD. OUTSET, A PRELIMINARY PLEA HAS BEEN RAISED BEFORE ME CONTEND ING THAT THE CIT(A) HAS PASSED AN EX PARTE ORDER DISMISSING THE APPEAL OF THE ASSESSEE BY MERELY NOTICING THE ABSENCE OF THE ASSESSEE ON THE DATE OF HEARING. THE LEARNED REPRESENTATIVE FOR THE ASSESSEE POINTED OUT THAT THE CIT(A) NOTED THAT THERE WAS NO R ESPONSE FROM THE ASSESSEE ON THE DATE OF HEARING AND, THEREFORE, HE PRESUMED THAT ASSESSEE WAS NOT INTERESTED IN PROSECUTING THE APPEAL AND HAS ACCORDINGLY DISMISSED THE APPEAL WITHOUT GOING INTO THE MERITS. IT WAS POINTED OUT THAT IN TERMS OF THE AFFIDAVIT OF THE DIRECTOR DATED 31.07.2017 , AT THE RELEVANT POINT OF TIME , THERE WAS HIGH TURNOVER IN THE STAFF EMPLOYED BY THE ASSESSEE - COMPANY AND THE CONCERNED EMPLOYEE HANDLING THE INCOME - TAX MATTERS HAD PUT IN HIS RESIGNATION AND, THEREFORE, THERE WA S IMPROPER ATTENDANCE TO THE NOTICES ISSUED BY THE CIT(A). THE LEARNED REPRESENTATIVE CANVASSED THAT IF THE MATTER IS REMANDED BACK TO THE FILE OF THE CIT(A), ASSESSEE WOULD DEFINITELY PUT IN APPEARANCE SINCE IT WAS INTERESTED IN PROSECUTING THE APPEAL EF FECTIVELY. 3. ON THE OTHER HAND, THE LD. DR HAS NOT SERIOUSLY OPPOSED THE PLEA OF THE ASSESSEE FOR REMANDING THE MATTER BACK TO THE FILE OF CIT(A), BUT CONTENDED THAT THE CIT(A) WAS JUSTIFIED IN DISMISSING THE APPEAL AS THE ASSESSEE HAD NOT PUT IN APPEARA NCE ON THE APPOINTED DATES OF HEARING. 4. I HAVE CAREFULLY CONSIDERED THE RIVAL SUBMISSIONS. HAVING PERUSED THE ORDER OF THE CIT(A), I FIND THAT THE APPEAL HAS BEEN DISMISSED WITHOUT ADVERTING TO THE MERITS OF THE GROUNDS RAISED BY THE ASSESSEE BEFORE HI M . THE CIT(A) HAS DISMISSED THE APPEAL ON THE PREMISE THAT THE ABSENCE OF THE ASSESSEE ON THE APPOINTED DATES OF HEARING REFLECTED 3 ITA NO. 1943/MUM/2017 M/S. INNOVATIVE AUTOMOBILES PVT. LTD. NON - INTEREST ON THE PART OF THE ASSESSEE TO PROSECUTE THE APPEAL FILED. IN MY CONSIDERED OPINION, THE MANNER IN WHICH CIT(A ) HAS DISPOSED OFF THE APPEAL IS CONTRARY TO THE PROCEDURE PRESCRIBED IN SEC. 250(6) OF THE ACT. IN TERMS OF SUB - SECTION (6) OF SEC. 250 OF THE ACT, THE CIT(A) IS OBLIGATED TO DISPOSE OFF THE APPEAL IN WRITING BY STATING THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR SUCH A DECISION. QUITE CLEARLY, IN THIS CASE, THE MERITS OF THE GROUNDS RAISED BY THE ASSESSEE BEFORE THE CIT(A) HAVE NOT BEEN ADJUDICATED, AND RATHER, HAVE NOT BEEN ADVERTED TO AT ALL BY THE CIT(A). THEREFORE, ON THI S ASPECT ALONE, I FIND THAT THE ORDER OF THE CIT(A) IS UNSUSTAINABLE HAVING REGARD TO THE REQUIREMENT S OF SEC. 250(6) OF THE ACT. ACCORDINGLY, I DEEM IT FIT AND PROPER TO SET - ASIDE THE ORDER OF CIT(A) AND RESTORE THE MATTER BACK TO HIS FILE TO BE ADJUDICA TED AFRESH AS PER LAW. NEEDLESS TO MENTION, THE CIT(A) SHALL ALLOW THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD AND ONLY THEREAFTER HE SHALL PASS AN ORDER AFRESH, AS PER LAW. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS DISPOSED OFF AS ABOVE , WITH OUT GOING INTO THE MERITS OF THE ADDITION IN DISPUTE. 6. RESULTANTLY, APPEAL OF THE ASSESSEE IS ALLOWED TO THE ABOVE EXTENT. ORDER PRONOUNCED IN THE OPEN COURT ON 2 9 T H SEPTEMBER, 2017. SD/ - ( G.S. PANNU ) ACCOUNTANT MEMBER MUMBAI, DATE : 2 9 T H SEPTEMBER, 2017 * SSL * 4 ITA NO. 1943/MUM/2017 M/S. INNOVATIVE AUTOMOBILES PVT. LTD. COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, SMC BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI