M/s. Novelty Dealers Private Limited , Kolkata V. ITO, Ward - 7(1), Kolkata

ITA 1967/KOL/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 9463 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 3 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-01-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2012-2013
• Appeal Filed On: 13-09-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K NAYAK
• Keywords: Principle of natural justice
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL KOLKATA A BENCH, KOLKATA [BEFORE SHRI J. SUDHAKAR REDDY, ACCOUNTANT MEMBER & SHRI S.S. GODARA, JUDICIAL MEMBER] I.T.A. NO. 1967/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. NOVELTY DEALERS PRIVATE LIMITED...................................................APPELLANT [PAN: AACCN 7115 L] VS. ITO, WARD-7(1), KOLKATA...............................................................................................RESPONDENT APPEARANCES BY: NONE APPEARED ON BEHALF OF THE ASSESSEE. SH. A.K. NAYAK, CIT(DR), APPEARED ON BEHALF OF THE REVENUE. DATE OF CONCLUDING THE HEARING : DECEMBER 05 TH , 2019 DATE OF PRONOUNCING THE ORDER : JANUARY 8 TH , 2020 ORDER PER J. SUDHAKAR REDDY, AM : THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AGAINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS)-18, KOLKATA [CIT(A) FOR SHORT] DATED 21.02.2018 U/S 250 OF THE INCOME TAX ACT, 1961 (THE ACT FOR SHORT) FOR AY 2012-13. 2. AFTER HEARING RIVAL CONTENTIONS, WE FIND THAT BOTH THE AO AS WELL AS THE LD. CIT(A) HAVE PASSED EX-PARTE ORDERS, ON THE GROUND THAT THE ASSESSEE DID NOT APPEAR BEFORE THEM. BEFORE US, THE ASSESSEE, IN THE GROUNDS OF APPEAL, PLEADS VIOLATION OF PRINCIPLES OF NATURAL JUSTICE AND REQUESTS THAT THE MATTER BE RESTORED TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. 3. THE LD. DR SUBMITTED THAT THE ISSUE MAY BE RESTORED TO THE FILE OF THE AO ON THE GROUNDS OF VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 4. IN VIEW OF THE ABOVE SUBMISSIONS MADE BY BOTH THE PARTIES, WE RESTORE THIS APPEAL TO THE FILE OF THE AO FOR FRESH ADJUDICATION IN ACCORDANCE WITH LAW. THE AO SHALL PROVIDE ADEQUATE OPPORTUNITY TO THE ASSESSEE BEFORE PASSING THE ASSESSMENT ORDER. THE 2 I.T.A. NO. 1967/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. NOVELTY DEALERS PRIVATE LIMITED. ASSESSEE SHALL APPEAR BEFORE THE AO, TAKE NOTICE AND THEREAFTER CO-OPERATE IN COMPLETION OF THE ASSESSMENT PROCEEDINGS. 5. THE ASSESSEE IS FURTHER DIRECTED TO PAY COST OF RS.5,000/- (RS. FIVE THOUSAND ONLY) IN FAVOUR OF PRIME MINISTER RELIEF FUND, FOR HAVING NOT APPEARED BEFORE THE LD. CIT(A) AS WELL AS THE AO, IN THIS PROCEEDING. THE AO SHALL VERIFY THE SAID PAYMENT BY THE ASSESSEE AND THEREAFTER PROCEED TO MAKE DE NOVO ASSESSMENT IN ACCORDANCE WITH LAW. 5.1. FOR THIS PROPOSITION TO LEVY COSTS, WHILE CONDONING THE ACTIONS OF THE ASSESSEE AS REASONABLE, WE RELY ON THE DECISION OF THE HONBLE BOMBAY HIGH COURT IN THE CASE OF VIJAY VISHIN MEGHANI VS. THE DEPUTY COMMISSIONER OF INCOME TAX CIRCLE IN ITA NO. 493 OF 2015 & 508 OF 2015 , DTD. SEPTEMBER 19, 2017, WHEREIN AT PARA 11, IT HAS BEEN HELD AS FOLLOWS:- 11. WE DO NOT FIND THAT ANY OF THESE DECIDED CASES HAVE ANY APPLICATION TO THE FACTS BEFORE US. WE HAVE IMPOSED THE COSTS NOT BECAUSE THE APPELLANT WAS NOT ACTING BONA FIDE BUT FINDING THAT EVEN AFTER THE LEGAL ADVICE WAS OBTAINED, THE MATTER WAS DECIDED IN FAVOUR OF THE ASSESSEE, THERE WAS TIME WHICH WAS CONSUMED AND IN ALL THIS DELAY OF 2984 DAYS OCCURRED. WHILE CONDONING SUCH DELAY, IT IS PERMISSIBLE FOR COURT, IN ITS DISCRETION, TO IMPOSE COSTS. EVENTUALLY, THE RIGHTS AND EQUITIES HAVE TO BE BALANCED. TO RENDER SUBSTANTIAL JUSTICE AND NOT TO ENRICH THE REVENUE THAT THE COSTS HAVE BEEN IMPOSED. IT IS NOT, THEREFORE, A CASE WHERE THE STATE HAS BEEN ALLOWED TO RETAIN ANY BENEFIT OR HAS BEEN BENEFITED BY ANY DIRECTIONS. IT IS THE COURT WHICH IN ITS DISCRETION HAS IMPOSED THIS CONDITION. WE DO NOT FIND ANY BASIS TO ALTER IT. THE REQUEST IN THAT BEHALF IS REFUSED. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS DIRECTED ABOVE. KOLKATA, THE 8 TH JANUARY, 2020. SD/- SD/- [S.S. GODARA] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 08.01.2020 BIDHAN 3 I.T.A. NO. 1967/KOL/2018 ASSESSMENT YEAR: 2012-13 M/S. NOVELTY DEALERS PRIVATE LIMITED. COPY OF THE ORDER FORWARDED TO: 1. M/S. NOVELTY DEALERS PRIVATE LIMITED, C/O CHANDRA SHAKER CHOUDHARY, 10, SRI AROBINDA SARANI, GROUND FLOOR, KOLKATA-700 005. 2. ITO, WARD-7(1), KOLKATA. 3. CIT(A)-18, KOLKATA. (SENT THROUGH E-MAIL) 4. CIT- 5. CIT(DR), KOLKATA BENCHES, KOLKATA. (SENT THROUGH E-MAIL) TRUE COPY BY ORDER ASSISTANT REGISTRAR ITAT, KOLKATA BENCHES