Sh. Deepak Kumar, Sunam V. ITO, Sunam

ITA 198/CHANDI/2011

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5490 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 23-02-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Section: 143(3)

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCHES A CHANDIGARH BEFORE SHRI D.K.SRIVASTAVA, ACCOUNTANT MEMBER AND MS SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO. 198/CHD/2011 ASSESSMENT YEAR: 2007-08 SHRI DEEPAK KUMAR, VS. THE ITO, WARD, PROP B.R. RICE MILLS, SUNAM SUNAM PAN NO. AGFPK1518C (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI AJAY JAIN RESPONDENT BY: SMT. SARITA KUMARI ORDER PER SUSHMA CHOWLA, JM THE APPEAL BY THE ASSESSEE IS AGAINST THE ORDER OF CIT(A), PATIALA DATED 28.12.2010 RELATING TO ASSESSMENT YEAR 2007-0 8 AGAINST THE PENALTY IMPOSED UNDER SECTION 143(3) OF THE I.T. ACT, 1961 . 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. THAT THE LD. CIT(A) PATIALA HAS WRONGLY DISMISSED T HE APPEAL FOR WANT OF PROSECUTION AND ALSO ERRED BY NO T DECIDING THE ISSUE / GROUNDS ON MERIT. 2. THAT THE LD. CIT(A) HAS ERRED IN CONFIRMING THE ADDITION OF RS. 7,49,390/- MADE UNDER VARIOUS HEAD MENTIONED IN PARA 2 TO 6 OF THE ASSESSMENT ORDER WITHOUT APPRECIATING THE FACT THAT ALL ADDITIONS HA VE 2 BEEN MADE BY LD. ASSESSING OFFICER WITHOUT ANY MATERIAL EVIDENCE ON RECORD. 3 . THE ASSESSEE VIDE ABOVE GROUNDS HAS RAISED THE ISSU ES THAT THE CIT(A) HAS WRONGLY DISMISSED THE APPEAL FOR WANT OF PROSECUTION AND ALSO ERRED BY NOT DECIDING THE ISSUES ON MERIT WITHOUT A PPRECIATING THE FACT THAT ALL ADDITIONS HAVE BEEN MADE BY ASSESSING OFFI CER WITHOUT ANY EVIDENCE OR MATERIAL ON RECORD. THE GRIEVANCE OF T HE ASSESSEE IS THAT NO PROPER OPPORTUNITY WAS AFFORDED. THE ORDER PASSED BY CIT(A) IS A NON- SPEAKING ORDER. 4. THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE CONFIRMATION OF ADDITIONS BY CIT(A). THE PRINCIPLE OF NATURAL JUST ICE REQUIRES A REASONABLE OPPORTUNITY OF HEARING TO BE ALLOWED TO THE ASSESSEE BEFORE PASSING AN ASSESSMENT ORDER. WE FIND THAT CIT(A) H AS NOT PASSED A SPEAKING ORDER IN THE CASE. UNDER THE PROVISIONS O F SECTION 250 OF THE INCOME TAX ACT, THE CIT(A) HAS TO PASS A SPEAKING O RDER IN RESPECT OF THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE AFTER HEAR ING THE ASSESSEE. THE CIT(A) OUGHT TO HAVE ADJUDICATED UPON THE MAINTAINA BILITY OF THE APPEALS FILED BY HIM IN TERMS OF SECTION 246A (1)(Q) BY PAS SING A SPEAKING ORDER IN THIS BEHALF. WE FIND THAT CIT(A) IN THE PRESENT CASE HAS FAILED TO FOLLOW THE PROCEDURE IN APPEAL PROCEEDINGS AS LAID DOWN IN SECTION 250 OF THE INCOME TAX ACT. IN THE INTEREST OF JUSTICE, WE DEEM IT FIT TO RESTORE THE ISSUE BACK TO THE FILE OF CIT(A) TO DECIDE THE ISSUE RAISED BY THE ASSESSEE VIDE SPEAKING ORDER. A REASONABLE OPPORT UNITY OF HEARING SHALL BE AFFORDED TO THE ASSESSEE. THE GROUNDS OF APPEA L RAISED BY THE ASSESSEE ARE THUS ALLOWED FOR STATISTICAL PURPOSES. WE ARE NOT ADDRESSING THE ISSUE ON MERITS IN VIEW OF OUR SETTING ASIDE THE ISSUE TO THE FILE OF CIT(A). 3 ITA NO. 198/CHD/2011 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THIS _8 TH DAY OF APRIL, 2011. SD/- SD/- (D.K.SRIVASTAVA) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : APRIL, 2011 RKK COPY TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT 4. THE CIT(A) 5. THE DR