M/s. NEPC Textiles Limited, CHENNAI V. ACIT, CHENNAI

ITA 2071/CHNY/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 73736 (ITAT-CHENNAI)
• Duration Of Justice: 3 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-03-2014
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2005-2006
• Appeal Filed On: 26-11-2013
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: N MADHAVAN JCITD R
• Assessee Lawyers: S SRIDHAR
• Keywords: Reasonable cause

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . , , !' # , $ % BEFORE SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER AND SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER ./ I.T.A.NOS.2070 & 2071/MDS./2013 ( / ASSESSMENT YEAR :2005-06) M/S.NEPC TEXTILES LTD., NO.36,WALLAJAH ROAD, CHENNAI 600 002. VS. THE ASST. COMMISSIONER OF INCOME TAX, COMPANY CIRCLE IV(4), CHENNAI. PAN AAACN 1570 F ( &' / APPELLANT ) ( #(&' / RESPONDENT ) / APPELLANT BY : SHRI S.SRIDHAR,ADVOCATE / RESPONDENT BY : SHRI N.MADHAVAN,JCIT,D.R / DATE OF HEARING : 13.02.2014 ! /DATE OF PRONOUNCEMENT : 07.03.2014 ) / O R D E R M/S.NEPC TEXTILES LTD. 2 PER A.MOHAN ALANKAMONY , ACCOUNTANT MEMBER: THESE TWO APPEALS ARE FILED BY THE ASSESSEE, AGGR IEVED BY THE SEPARATE ORDERS OF THE LEARNED COMMISSIONER OF INCO ME TAX(A)-II, CHENNAI DATED 24.09.2013 IN IT APPEAL NO.92/10-11 F OR A.Y. 2005-06 PASSED UNDER SECTION.144 R.W.S.250 OF THE ACT AND ITA NO.93/10-11 DATED 24.09.2013 FOR THE A.Y. 2005-06 PASSED UNDE R SECTION 271(1)(B) R.W.S. SEC.250 OF THE ACT. SINCE THE QUA NTUM APPEAL AND THE PENALTY APPEAL ARE INTERLINKED, THEY ARE DISPOS ED OF BY THIS COMMON ORDER FOR THE SAKE OF CONVENIENCE. 2. THE ASSESSEE HAS RAISED TEN AND NINE ELABORATE GROUNDS IN THE QUANTUM APPEAL & PENALTY APPEAL FOR THE RELEVANT AS SESSMENT YEAR. 3. AT THE OUTSET LD. A.R. SUBMITTED THAT BOTH THE REVENUE AUTHORITIES HAVE DECIDED THE CASE EXPARTE WITHOUT P ROVIDING PROPER OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. HE THER EFORE, REQUESTED THAT THE CASE MAY BE REMITTED BACK TO THE FILE OF L D. ASSESSING OFFICER FOR FRESH CONSIDERATION. LD. D.R STOUTLY OPPOSED T O THE SUBMISSIONS OF THE LD. A.R. AND ARGUED STATING THAT THE BOTH TH E LD. ASSESSING M/S.NEPC TEXTILES LTD. 3 OFFICER AND LD. CIT (A) HAD OFFERED ENOUGH OPPORTUN ITY TO THE ASSESSEE, BUT THE ASSESSEE AND ITS COUNSEL DID NOT CO-OPERATED WITH THE REVENUE IN BOTH THE ASSESSMENT AND APPELLATE PR OCEEDINGS. THEREFORE, THE LD. D.R REQUESTED THAT THE ORDERS OF THE LD. CIT (A) MAY BE UPHELD, WHICH ARE DECIDED ON MERITS. 4. WE HAVE HEARD BOTH THE PARTIES AND CAREFULLY PE RUSED THE MATERIALS AVAILABLE ON RECORD. ON PERUSING THE ORD ERS OF THE LD. ASSESSING OFFICER AND LD. CIT (A), WE FIND THAT THE ASSESSEE OR HIS COUNSEL DID NOT CO-OPERATE WITH THE REVENUE DURING THE ASSESSMENT/PENALTY AND APPELLATE PROCEEDINGS. THE D ETAILS OF THE DATES OF HEARINGS BEFORE THE LD. ASSESSING OFFICER AND THE LD. CIT (A) ARE STATED HEREIN BELOW AS OBSERVED FROM THE OR DERS OF THE RESPECTIVE REVENUE AUTHORITIES. ASSESSMENT PROCEEDINGS :- POSTED FOR HEARING ASSESSEE S RESPONSE 04.06.2007 NO RESPONSE 14.08.2007 NO RESPONSE 03.09.2007 NO RESPONSE M/S.NEPC TEXTILES LTD. 4 09.10.2007 LD.A.R APPEARED AND SOUGHT FOR ADJOURNMENT 30.10.2007 NO RESPONSE SHOW CAUSE NOTICE DT.30.11.07 NO RESPONSE 06.12.2007 NO RESPONSE SHOW CAUSE NOTICE DT.18.12.07 NO RESPONSE 24.12.2007 NO RESPONSE APPELLATE PROCEEDINGS POSTED FOR HEARING ASSESSEE S RESPONSE 13.08.2013 NO RESPONSE 27.08.2013 NO RESPONSE 4.1 EVEN BEFORE US, THE LD. COUNSEL FOR THE ASS ESSEE REFRAINED FROM ARGUING THE CASE ON MERITS, BUT SIMPLY REQUEST ED FOR THE CASE TO BE REMITTED BACK FOR FRESH CONSIDERATION. MOREOVER NO MATERIALS ARE BROUGHT OUT BEFORE US EVEN AT THIS STAGE TO SUBSTAN TIATE THE GROUNDS RAISED BY THE ASSESSEE IN ITS APPEAL. FROM THE CON DUCT OF THE ASSESSEE, IT APPEARS THAT FRIVOLOUS GROUNDS AND ARG UMENTS ARE RAISED IN ORDER TO PROLONG THE PROCEEDINGS. THIS ATTITUDE OF THE ASSESSEE IS NOT APPRECIABLE. HOWEVER, IN THE INTEREST OF JUSTIC E WE HEREBY GRANT M/S.NEPC TEXTILES LTD. 5 ONE MORE OPPORTUNITY TO THE ASSESSEE TO PRESENT ITS CASE BEFORE THE REVENUE. ACCORDINGLY, WE HEREBY REMIT BACK THE MAT TER TO THE FILE OF LD. ASSESSING OFFICER, WHO SHALL HEAR THE CASE AFR ESH AND PASS APPROPRIATE ORDERS ACCORDING TO MERIT AND LAW EXPEDITIOUSLY . WE ALSO DIRECT THE ASSESSEE AND ITS COUNSEL TO PRO MPTLY PRESENT ITS CASE BEFORE THE REVENUE, WITHOUT SEEKING UNNECESSAR Y ADJOURNMENT AND CO-OPERATE WITH THE PROCEEDINGS FOR THE SPEEDY DISPOSAL OF THE CASE. 5. LD. ASSESSING OFFICER HAD LEVIED PENALTY U/S. 2 71(1) (B) OF THE ACT, BECAUSE OF THE IRRESPONSIBLE CONDUCT OF THE AS SESSEE AND SCANT REGARD FOR THE NOTICES ISSUED BY THE DEPARTMENT. TH E LD. CIT (A) ENDORSED THE VIEW OF THE LD. ASSESSING OFFICER. TH OUGH LD. A.R. ARGUED BEFORE US STATING THAT THERE WAS REASONABLE CAUSE FOR NON- COMPLIANCE AND THEREFORE, RELIEF MAY BE GRANTED INV OKING SEC.273(B) OF THE ACT, WE ARE OF THE OPINION THAT THE ACTION O F THE REVENUE IS APPROPRIATE CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE, WHICH IS EXPLICIT AND WELL EXPLAINED IN THE ORDERS OF THE REVENUE M/S.NEPC TEXTILES LTD. 6 AUTHORITIES. THEREFORE, WE CONFIRM THE ORDER OF THE LD. CIT (A) ON THIS ISSUE. 6. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE P ARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 7 TH MARCH, 2014 AT CHENNAI. SD/- SD/- (CHALLA NAGENDRA PRASAD ) (A.MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER CHENNAI, DATED THE 7 TH MARCH, 2014. K S SUNDARAM. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE