M/s. Hasnain Timber, Panchmahal V. The Income Tax Officer, Ward - 1, Panchmahal

ITA 1995/AHD/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 1445 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-06-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 10-06-2016
• Assessment Year: 2008-2009
• Appeal Filed On: 25-07-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: M J SHAH
• Keywords: Principle of natural justice
• Section: 144

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL SMC BENCH, AHMEDABAD BEFORE SHRI RAJPAL YADAV, JUDICIAL MEMBER ./ ITA.NO.1995/AHD/2013 / ASSTT. YEAR: 2008-2009 M/S.HASNAIN TIMBER AT CHIKHODRA, TALUKA GODHRA DIST: PAN MAHALS : 389 001. PAN : AACFH 8192 C VS ITO, WARD - 1 GODHRA. ! / (APPELLANT) '# ! / (RESPONDENT) ASSESSEE BY : SHRI M.J. SHAH, AR REVENUE BY : SHRI PRASOON KABRA, SR.DR / DATE OF HEARING : 10/06/2016 / DATE OF PRONOUNCEMENT: 10/06/2016 $%/ O R D E R THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL AGAIN ST THE ORDER OF THE LD.CIT(A)-IV, BARODA DATED 9.11.2012 PASSED FOR THE ASSTT.YEAR 2008-09. 2. THE ASSESSEE HAS TAKEN SIX GROUNDS OF APPEAL, OU T OF WHICH, IN GROUND NO.1 IT HAS BEEN PLEADED THAT ORDERS OF THE LD.REVE NUE AUTHORITIES DESERVE TO BE SET ASIDE ON THE GROUND OF VIOLATION OF PRINCIPL E OF NATURAL JUSTICE. 3. THE LD.COUNSEL FOR THE ASSESSEE, WITHOUT TOUCHIN G OTHER GROUNDS OF APPEAL ON MERIT, CONTENDED THAT ASSESSMENT ORDER AS WELL AS CIT(A)S ORDER ARE EX PARTE . THE WORKING PARTNER, SHRI AHMEDALI KURBANHUSAIN PIPLODWALA WAS UNDER MEDICAL SUPERVISION FOR A LONG TIME, DUE CARDIAC DISEASE AND IN HIS ABSENCE OTHER PARTNERS OF THE FIRM FAILED TO COMPLY WITH THE NOTICES OF THE ITA NO.1995/AHD/2013 2 LD.AO. HE POINTED OUT THAT BECAUSE OF ILLNESS, PRO CEEDING BEFORE THE LD.REVENUE AUTHORITIES COULD NOT BE PROSECUTED PROP ERLY. 4. ON THE OTHER HAND, THE LD.DR CONTENDED THAT NUMB ER OF OPPORTUNITIES HAVE BEEN GIVEN TO THE ASSESSEE, BUT FAILED TO AVAI L. THEREFORE, UNDER COMPELLING CIRCUMSTANCES, THE INCOME OF THE ASSESSE E HAS BEEN ASSESSED UNDER SECTION 144 OF THE INCOME TAX ACT BY THE AO, AND TH E LD.CIT(A) HAS CONFIRMED THE ASSESSMENT ORDER. 5. I HAVE DULY CONSIDERED RIVAL CONTENTIONS AND GON E THROUGH THE RECORD. THE ASSESSEE HAS FILED ITS RETURN OF INCOME ON 30.9 .2008 ELECTRONICALLY AND DECLARED AN INCOME OF RS.25,462/-, AND ASSESSMENT O RDER WAS PASSED UNDER SECTION 144 OF THE INCOME TAX ACT ON 13.12.2010, WH EREBY THE INCOME OF THE ASSESSEE HAS BEEN DETERMINED AT RS.17,02,720/-. AD MITTEDLY, THE ASSESSEE HAS COMMITTED LAPSES IN PROSECUTING INCOME TAX PROCEEDI NGS BEFORE THE REVENUE AUTHORITIES BELOW. BUT TO MY MIND, PUNISHMENT IN T HE SHAPE OF TAX LIABILITY ON THE ADDITIONS MADE BY THE AO IS DISPROPORTIONATE TO THE NEGLIGENCE COMMITTED BY THE ASSESSEE. IT HAS ALREADY SUFFERED A LOT IN HANDLING THE PROCEEDINGS IN DIFFERENT LEVELS AND ALSO PAYMENT OF TRIBUNALS FEE OF RS.10,000/-. CONSIDERING ALL THESE ASPECTS, I ALLOW THE APPEAL O F THE ASSESSEE, SET ASIDE BOTH THE ORDERS AND RESTORE ALL THE ISSUES TO THE FILE O F THE AO FOR RE-ADJUDICATION. 6. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE COURT ON 10 TH JUNE, 2016 AT AHMEDABAD. SD/- (RAJPAL YADAV) JUDICIAL MEMBER AHMEDABAD; DATED 10/06/2016