Stuti Builders, Shimla V. DCIT/ACIT, Circle, Shimla

ITA 196/CHANDI/2023

• Counselvise Citation: [2023] 101 COUNSELVISE.COM (IT) 9957 (ITAT-CHANDIGARH)
• Duration Of Justice: 7 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 16-11-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Next Hearing Date: 27-08-2023
• Assessment Year: 2008-2009
• Appeal Filed On: 09-04-2023
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

आयकर अपीलȣय अͬधकरण,चÖडीगढ़ Ûयायपीठ, चÖडीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, ‘B’, CHANDIGARH BEFORE SHRI A.D. JAIN, VICE PRESIDENT & SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 196/CHD/2023 Ǔनधा[रण वष[ / Assessment Year : 2008-09 Stuti Builders, Strilling Castle, Longwood, Shimla (H.P.) 171001 Vs. बनाम The DCIT / ACIT, Circle, Shimla èथायी लेखा सं./PAN No. ABDFS6427R अपीलाथȸ/Appellant Ĥ×यथȸ/Respondent (VIRTUAL HEARING) Ǔनध[ǐरती कȧ ओर से/Assessee by : Shri Vishal Mohan, Sr.Adv with] Shri Aman Singhi, CA राजèव कȧ ओर से/ Revenue by : Shri Dharamvir, JCIT, Sr.DR स ु नवाई कȧ तारȣख/Date of Hearing : 28.08.2023 उदघोषणा कȧ तारȣख/Date of Pronouncement : 17.11.2023 आदेश/Order Per A.D. Jain, Vice President: This is assessee’s appeal against the order of the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, dated 09.02.2023, for the Assessment Year 2008-09, taking the following grounds of appeal: 196-Chd-2023- – Stuti Builders, Shimla 2 1. That in the facts and circumstances of the case the ld. Commissioner of Income Tax (Appeals) is not justified in upholding the levy of penalty of Rs. 2,01,732/- u/s Section 271 (1) (c) of the Income Tax Act, 1961. The penalty has been imposed and sustained illegally. 2. That the order of the ld. Commissioner of Income Tax (Appeals), is bad in law and fact. 2. At the outset, it has been submitted by the ld. Authorized Representative (AR) of the Assessee that the sole grievance of the Assessee is that the ld. CIT(A) has concluded the proceedings by passing an ex-parte order without proper perusal of the assessment record and dismissed the appeal of the Assessee by upholding the penalty order passed by the Assessing Officer; and that the Assessee had not received any letter from the Commissioner of Income Tax (Appeals) by post of by mail and thus, reply could not be submitted before the ld. CIT(A). It has further been submitted that the impugned order confirmed by the ld. CIT(A), by passing an ex-parte order is totally unfair, arbitrary and unjustified. It is submitted that the Assessee has a fair case on merits and, therefore, prayed that keeping in view the principles of natural justice, the Assessee may be given a reasonable opportunity of hearing of the appeal before the ld. 196-Chd-2023- – Stuti Builders, Shimla 3 Commissioner (Appeals) and the appeal may be directed to be decided on merits. 3. The ld. DR, on the other hand, relied on the orders of the lower authorities. 4. Heard. We have gone through the order of the ld. CIT (A) and find that the ld. CIT(A) has dismissed the appeal of the Assessee ex- parte by merely upholding the penalty order passed by the Assessing Officer, without considering the material available on record, and also without going into the merits of the case. As such, an opportunity of hearing requires to be given to the Assessee to represent his case fully before the ld. CIT(A). Even otherwise, it is trite [‘S. Velu Palandar Vs. DCIT’ 83 ITR 683 (Mad.)] and incumbent on the authority to decide an appeal on merit. 5. The ld. D.R., though, has placed reliance on the orders of the authorities below, but has no objection if the matter is remanded to the CIT(A) for adjudication afresh. 5. In view of the above, in the interest of justice, the matter is remitted to the file of the CIT(A), to be decided afresh on merit, in accordance with law, on affording due and adequate opportunity of hearing to the Assessee. The Assessee, no doubt, shall cooperate in 196-Chd-2023- – Stuti Builders, Shimla 4 the fresh proceedings before the CIT(A). All pleas available under the law shall remain so available to the assessee. Ordered accordingly. 6. In the result, for statistical purposes, the appeal is treated as allowed for statistical purposes. Order pronounced on 17.11.2023. Sd/- Sd/- (VIKRAM SINGH YADAV) ( A.D. JAIN ) Accountant Member Vice President Dated : 17.11.2023 “आर.के.” आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of the order forwarded to : 1. अपीलाथȸ/ The Appellant 2. Ĥ×यथȸ/ The Respondent 3. आयकर आय ु Èत/ CIT 4. ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, चÖडीगढ़/ DR, ITAT, CHANDIGARH 5. गाड[ फाईल/ Guard File आदेशान ु सार/ By order, सहायक पंजीकार/ Assistant Registrar