Vaishno Devi Trust, Noida V. ITO ward 2(5), Noida

ITA 2039/DEL/2019

• Counselvise Citation: [2022] 107 COUNSELVISE.COM (IT) 0896 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 2 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-06-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: 2015-2016
• Appeal Filed On: 07-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice
• Section: 143(3); 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “F” DELHI BEFORE SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER & SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER I.T.A. No.2039/DEL/2019 Assessment Year 2015-16 Vaishno Devi Trust, B-114, Sector-51, Noida v. ITO, Ward-2(5), Noida. TAN/PAN: AABTV8755C (Appellant) (Respondent) Appellant by: ShriGauravBansal, CA Respondent by: Shri T. Kipgen, CIT-DR Date of hearing: 18 04 2022 Date of pronouncement: 03 06 2022 O R D E R PER PRADIP KUMAR KEDIA, A.M.: The captioned appeal has been filed at the instance of the assessee against the order of the Co mmissioner of Inco me Tax (Appeals)-I, Noida ( ‘CI T( A) ’ in short) dated 28.09.2018 arising fro m the assessment order dated 26.12.207 passed by the Assessing Officer (AO) under Section 143(3) of the Inco me Tax Act, 1961 (the Act) concerning AY 2015-16. 2. When the matter was called for hea ring, ld. counsel for the assessee, at the outset, pointed out that the CIT(A) vide notice dated 12.09.2018 fixed the date of hearing for 26.09.2018. In I.T.A. No.2039/Del/2019 2 response thereto, the assessee applied for and sought an adjourn ment on account of professional occupation due to tax audit and statutor y audit. Howeve r, the CIT( A) de clined the adjourn ment and did not grant any further opportunity and passed the appellate order dated 28.09.208 ex-parte. The ld. counsel thus submitted that the first appellate order has been passed as an empty for malit y wi thout giving any effective opportunity of being heard. The ld. counsel accordingly submitted that the first appellate order should be set aside and the subject matter of grievance be restored to the file of the CIT( A) for adjud ication afresh in accordance with law after giving reasonable opportunity expe cted by the tax pa yer . The Ld. counsel accor dingly sought suitable relief in the f acts of the case. 3. We find palpable merit in the contentions advanced on behalf of assessee towards infringe ment of natural justice. On perusal of the impugned first appellate order passed under Section 250 of the Act dated 28.09.2018, we find that vide notice dated 12.09.2018, hearing was fixed on 26.09.2018. The assessee responded to the aforesaid notice and filed a letter dated 25.09.2018 on behalf of the assesseethat the concerned I.T.A. No.2039/Del/2019 3 counsel is occupied owing to ongoing tax audit and statutory audit of companies and thus expressed his inability to attend the proceedings and consequently req uested for an adjourn ment. The CIT( A) however did not pay a ny heed to such request. The appeal was wrapp ed up and dismissed ex-parte hastily on the ground that professional preoccupation of a counsel is no ground for seeking adjournment. Thus, a solitary o pportunity was given and the request for an adjourn ment was declined leading to ex-parte order. 4. The iniquitons approach of the first appellate authority leaves us complet el y baffled. The solitary opportunity of fe w days to attend the hearing is nothing but a mere presence and e mpt y for malit y. Needless to say, t he adherence to principles of natural justice is the very soul to administration of justice. These overriding principles enjoins the quasi-judicial authority to provide an effective opportunity to the subject assessee before arriving at an y conclusion adverse to the assessee. The unrestraint conduct of the First Appellate Authority in denying any effective opportunity r eeks of high handedness and abuse of the authority to sa y the least. Such brazen conduct of a very senior quasi judicial functionary has a debilitating imp act on the I.T.A. No.2039/Del/2019 4 tax paye rs and invokes distrust and ruse against the dispension. This is a case of blatant impropriety in exercising the judicial power making the assessee to run fro m pillar to post. Overtl y, the i mpugned order of CIT( A) is in co mplete subversion of sacrosanct principles of natural justice resulting in a travesty of justice. Such ipse-dixit of the CIT(A) cannot be countenanced in law even re motel y. 5. The i mpugned perfunctory order of the Ld. CIT(A) appealed against, thus requires to be set aside without any de mur. 6. All the issues raised in theex-parte order earlier are thus revived and restored for denovo adjudication by the First Appellate Authority. Needless to sa y, reasonable opportunity shall be granted to the assessee while adjudicating the grounds of appeal. It shall be open to the assessee to support and corroborate its case by adducing such material/information as ma y be considered expedient by it. Ld. CI T( A) shall pass a speaking order thereon in accordance with law. Sd /- [PRADIP KUMAR KEDIA] ACCOUNTANT MEMBER I.T.A. No.2039/Del/2019 5 Asc e nt Or de r Per : N K Ch ou d hr y , J. M . : 7 . P e r u s e d t h e o r d e r o f t h e H o n ’ b l e A M , I a m i n a g re e m e n t o f t h e c o n c l u s i o n d r a w n b y H o n ’ b l e A M , h o w e v e r w r i t i n g r e as o n s a s p e r m y d i c t i o n . 8 . T h e i m p u g n e d o r d e r w a s p a s s e d b y t h e L d . C IT ( A ) a s e x - p a r t e a n d t h e r e f o r e i s s u e e m e r g e , w h e t h e r t h e p r i n c i p l e s o f na t u r a l j u s t i c e h a v e b e e n c o m p l i e d w i t h , i n t h e i n s t a n t c a s e b y t h e Ld . C IT ( A ) b y gi v i n g p r o p e r a n d r e a s o n a b l e o p p o r t u n i t y o f b e i n g h e a r d t o t h e A s s e s s e e . 9 . It i s t r i t e t o s a y t h a t e v e r y p e r s o n h a s t h e r i gh t t o s p e a k a n d b e h e a r d w h e n a l l e g a t i o n s a r e b e i n g p u t t o w a r d s h i m o r h e r . If n o o p p o r t u n i t y h a s b e e n gi v e n t o t h e p a r t y e f f e c t e d , th e n i t s h a l l a m o u n t t o v i o l a t i o n s o f t h e p r i n c i p l e s o f n a t u r a l j u s t i c e , w hi c h e m b e d d e d i n l a t i n w o r d s “ A u d i A l t e r a m P a r t e m ” w h i c h m e a n s ‘ h e a r t h e ot h e r s i d e ’ , o r ‘ n o m a n s h o u l d b e c o n d e m n e d u n - h e a r d ’ o r ‘ b o t h t h e s i d es m u s t b e h e a r d b e f o r e p a s s i n g a n y o r d e r ’ . T h e p r i n c i p l e o f A u d i A lt e r a m P a r t e m i s t h e b a s i c c o n c e p t o f t h e p r i n c i p l e s o f n a t u r a l j u s t i c e , e v o l v e d t h r o u g h c i v i l i z a t i o n a n d m a n k i n d a n d i s t h e c o n c e p t o f c o m mo n l a w , w h i c h i m p l i e s f a i r n e s s , r e a s o n a b l e n e s s , e q u a l i t y a n d e q u it y. In In d i a , t h e p r i n c i p l e s o f n a t u r a l j u s t i c e a r e t h e g r o u n d s o f A r t i c l e 1 4 a n d 2 1 o f t h e C o n s t i t u t i o n . A r t i c l e 1 4 e n s h r i n e s t h a t e v e r y p e r s o n s h o u l d b e t r e a t e d e q u a l l y. In t h e l a n d m a r k c a s e o f ‘ M e n k a G a n d h i v s . T h e U n i o n o f In d i a ’ (1 9 7 8 A I R 5 9 7) , i t h a s b e e n h e l d b y C o n s t i t u t i o n B e n c h o f t h e A p e x C o u r t t h a t t h e l a w a n d p r o c e d u r e m u s t b e o f a f a i r , j u s t a n d r e a s o n a b l e k i n d . T h e d o c t r i n e e n s u r e s a f ai r h e a r i n g a n d f a i r j u s t i c e t o b o t h t h e p a r t i e s . U n d e r t h i s d o c t r i n e , bo t h t h e p a r t i e s h a v e t h e r i g h t t o s p e a k . T h e a i m o f t h i s p r i n c i p l e i s t o g i ve a n o p p o r t u n i t y t o t h e I.T.A. No.2039/Del/2019 6 p a r t i e s t o d e f e n d t h e m s e l v e s . B e f o r e t h e c o u r t , b o th t h e p a r t i e s a r e e q u a l a n d a r e e n t i t l e m e n t o f e q u a l o p p o r t u n i t y t o r e p r e s en t t h e m . I f t h e o r d e r i s p a s s e d b y t h e a u t h o r i t y w i t h o u t p r o v i d i n g t h e r ea s o n a b l e o p p o r t u n i t y o f b e i n g h e a r d t o t h e p e r s o n a f f e c t e d b y i t a d v e r s el y w i l l b e i n v a l i d a n d s h a l l b e l i a b l e t o b e s e t a s i d e . It i s a l s o a s e t t l e d p r i n c i p l e t h a t t h e e f f o r t o f th e c o u r t s h o u l d n o t b e o n e o f f i n d i n g m e a n s t o p u l l d o w n t h e s h u t t e r s of a d j u d i c a t o r y j u r i s d i c t i o n b e f o r e a p a r t y w h o s e e k s j u s t i c e , b u t t o s e e w h e t h e r i t i s p o s s i b l e t o e n t e r t a i n h i s g r i e v a n c e i f i t i s g e n u i ne . 1 0 . A d m i t t e d l y i n t h e i n s t a n t c a s e , t h e A s s e s s e e ’ s a p p e a l a g a i n s t t h e A s s e s s m e n t o r d e r d a t e d 2 6 - 1 2 - 2 0 1 7 w a s f i x e d , o n l y on c e f o r h e a r i n g o n d a t e d 2 6 - 0 9 - 2 0 1 8 b y t h e Ld . C IT ( A ) , o n w h i c h d a t e th e Ld . A R o f t h e A s s e s s e e b y f i l l i n g a n a p p l i c a t i o n s o u g h t a d j o u r n m en t o n t h e gr o u n d o f p r e - p r o f e s s i o n a l c o m m i t m e n t s f o r s t a t u t o r y c o m p l i a nc e s , h o w e v e r t h e Ld . C IT ( A ) d e c l i n e d t h e a d j o u r n m e n t a n d p r o c e e d e d t o d ec i d e t h e a p p e a l a s e x - p a r t e , w h i c h g o e s t o s h o w t h a t n o p r o p e r a n d r e as o n a b l e o p p o r t u n i t y o f b e i n g h e a r d w a s a f f o r d e d t o t h e A s s e s s e e a n d t h er e f o r e v i o l a t e d t h e p r i n c i p l e o f “ A u d i A l t e r a m P a r t e m ” . H e n c e c o n s i d e r i ng t h e p e c u l i a r f a c t s a n d c i r c u m s t a n c e s o f t h e c a s e , i t w o u l d b e a p p r o p r ia t e t o s e t a s i d e t h e i m p u g n e d o r d e r a n d t o r e m a n d b a c k t h e i n s t a n t c a s e t o t h e f i l e o f t h e Ld . C IT ( A ) f o r d e c i s i o n a f r e s h o n m e r i t s b y p a s s i n g s p ea k i n g o r d e r i n a c c o r d a n c e t o l a w , s u f f i c e t o s a y w h i l e a f f o r d i n g pr o p e r a n d r e a s o n a b l e o p p o r t u n i t y o f b e i n g h e a r d t o t h e A s s e s s e e , h e n c e or d e r e d a c c o r d i n gl y . Sd /- {NARENDER KUMAR CHOUDHRY JUDICIAL MEMBER I.T.A. No.2039/Del/2019 7 11. In t he re su lt , th e app eal of the A sse ss ee i s allo we d f or sta ti st ica l pu rp os es . Order was pronounced in the open Court on 03/06/2022. Sd/- Sd/- [NARENDER KUMAR CHOUDHRY] [PRADIP KUMAR KEDIA] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 03/06/2022