Khaitan Chemicals & Fertilizers Ltd., New Delhi V. CIT, New Delhi

ITA 2124/DEL/2011

• Counselvise Citation: 212420114 RSA 2011
• Duration Of Justice: 3 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2011
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Assessment Year: 2006-2007
• Appeal Filed On: 29-04-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: JAYANT MISHRA
• Assessee Lawyers: V K JAIN
• Keywords: Assessment record
• Section: 263; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL IN THE INCOME TAX APPELLATE TRIBUNAL DELHI DELHI DELHI DELHI BENCH D BENCH D BENCH D BENCH D : NEW DELHI : NEW DELHI : NEW DELHI : NEW DELHI BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND BEFORE SHRI G.E.VEERABHADRAPPA, VICE PRESIDENT AND SHRI A.D.JAIN, JUDICIAL MEMBER SHRI A.D.JAIN, JUDICIAL MEMBER SHRI A.D.JAIN, JUDICIAL MEMBER SHRI A.D.JAIN, JUDICIAL MEMBER ITA NO. ITA NO. ITA NO. ITA NO.2124/DEL/2011 2124/DEL/2011 2124/DEL/2011 2124/DEL/2011 ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR ASSESSMENT YEAR : : : : 2006 2006 2006 2006- -- -07 0707 07 M/S KHAITAN CHEMICALS & M/S KHAITAN CHEMICALS & M/S KHAITAN CHEMICALS & M/S KHAITAN CHEMICALS & FERTILIZERS LTD., FERTILIZERS LTD., FERTILIZERS LTD., FERTILIZERS LTD., 201, SKIPPER 201, SKIPPER 201, SKIPPER 201, SKIPPER HOUSE, HOUSE, HOUSE, HOUSE, 62 6262 62- -- -63, NEHRU PLACE, 63, NEHRU PLACE, 63, NEHRU PLACE, 63, NEHRU PLACE, NEW DELHI NEW DELHI NEW DELHI NEW DELHI 110 019. 110 019. 110 019. 110 019. PAN NO. PAN NO. PAN NO. PAN NO.AAACK2342Q. AAACK2342Q. AAACK2342Q. AAACK2342Q. VS. VS. VS. VS. COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, COMMISSIONER OF INCOME TAX, DELHI DELHI DELHI DELHI II, II, II, II, NEW DELHI. NEW DELHI. NEW DELHI. NEW DELHI. (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI V.K.JAIN, CA. RESPONDENT BY : SHRI JAYANT MISHRA, CIT-DR. ORDER ORDER ORDER ORDER PER PER PER PER A.D.JAIN, JM A.D.JAIN, JM A.D.JAIN, JM A.D.JAIN, JM : : : : THIS IS ASSESSEES APPEAL FOR AY 2006-07 AGAINST T HE ORDER DATED 28.3.2011 OF THE LEARNED CIT-II, NEW DELHI, WHEREBY , INVOKING THE PROVISIONS OF SECTION 263 OF THE IT ACT, HE CANCELL ED THE ASSESSMENT AND DIRECTED IT TO BE FRAMED AFRESH ON PROVIDING PR OPER OPPORTUNITY OF HEARING TO THE ASSESSEE. 2. WHILE DOING SO, THE LEARNED CIT OBSERVED, INTER- ALIA, THAT SHOW CAUSE NOTICE DATED 13.2.2010 WAS ISSUED AND DISPATC HED BY SPEED POST; THAT HOWEVER, NEITHER ANYBODY ATTENDED NOR AN Y REPLY WAS FILED IN RESPONSE; THAT ANOTHER SHOW CAUSE NOTICE WAS ISS UED AND DISPATCHED BY SPEED POST ON 1.3.2011; AND THAT THE SAID NOTICE CAME ITA-2124/DEL/2011 2 BACK WITH THE POSTAL REMARK LEFT. THE ORDER WAS THUS PASSED BY THE LEARNED CIT EX-PARTE QUA THE ASSESSEE. 3. BEFORE US, IT HAS BEEN CONTENDED ON BEHALF OF TH E ASSESSEE, THAT THE NOTICES ISSUED BY THE LEARNED CIT APPEAR TO HAV E BEEN DISPATCHED TO :- M/S KHAITAN CHEMICAL & FERTILIZERS PVT.LTD., 304, MOHTA BUILDING, 3 RD FLOOR, BHIKAJI CAMA PLACE, NEW DELHI 110 066. WHEREAS THE CORRECT ADDRESS OF THE ASSESSEE COMPANY IS :- M/S KHAITAN CHEMICAL & FERTILIZERS LTD., 201, SKIPPER HOUSE, 62-63, NEHRU PLACE, NEW DELHI 110 019. 4. IT HAS BEEN CONTENDED THAT THIS ADDRESS OF THE A SSESSEE IS ALSO GIVEN IN THE COMPUTATION OF INCOME FILED ALONGWITH THE RETURN AND THE ASSESSMENT ORDER PASSED U/S 143(3) OF THE ACT ON 19 .12.2008, BY THE DCIT, CIRCLE-5(1), NEW DELHI; THAT THIS ADDRESS OF THE ASSESSEE IS ALSO AVAILABLE FROM THE OTHER RECORD LIKE PRINTED BALANC E SHEET, REPORT UNDER SECTION 44AB OF THE ACT, NOTICE DATED 18.8.2008 REC EIVED FROM THE DCIT, CIRCLE-5(1), NEW DELHI AND REPORT U/S 10CCB O F THE ACT, BESIDE THE OTHER ASSESSMENT RECORD; THAT THE NOTICES DATED 13.2.2010 AND 1.3.2011, STATED TO HAVE BEEN SENT BY THE LEARNED C IT WERE NOT RECEIVED BY THE ASSESSEE COMPANY AT ALL; THAT THE A SSESSEE COMPANY HAS NEVER MAINTAINED ANY OFFICE AT 304, MOHTA BUILD ING, 3 RD FLOOR, BHIKAJI CAMA PLACE, NEW DELHI; THAT THEREFORE, THE SAID NOTICES WERE ITA-2124/DEL/2011 3 ISSUED TO A WRONG ADDRESS AND THE ASSESSEE NEVER CA ME TO KNOW OF THE PROCEEDINGS BEFORE THE LEARNED CIT. 5. THE LEARNED DR, ON THE OTHER HAND, HAS PLACED ST RONG RELIANCE ON THE IMPUGNED ORDER IN THIS REGARD, STATING THAT THE NOTICE DATED 1.3.2011 WAS RECEIVED BACK WITH THE POSTAL REMARK LEFT. 6. WE HAVE HEARD THE PARTIES ON THIS ISSUE. THE AS SESSEE MAINTAINS THAT SINCE IT DID NOT RECEIVE ANY NOTICE FROM THE L EARNED CIT, IT WAS PREVENTED BY SUFFICIENT CAUSE FROM APPEARING BEFORE THE LEARNED CIT IN THE PROCEEDINGS UNDER SECTION 263 OF THE ACT. THE STATED FACT OF THE NOTICES HAVING BEEN SENT TO AN ADDRESS WHICH WAS NO T THE ASSESSEES ADDRESS REMAINS UNDISPUTED. THE ADDRESS OF THE ASS ESSEE IN FORM NO.36 FILED BEFORE US IS KHAITAN CHEMICALS & FERTI LIZERS LTD., 201, SKIPPER HOUSE, 62-63, NEHRU PLACE, NEW DELHI 110 019. 304, MOHTA BUILDING, 3 RD FLOOR, BHIKAJI CAMA PLACE, NEW DELHI 110 016 HAS NOT BEEN SHOWN FROM THE RECORD TO BE THE ASSESSEES ADD RESS. EVEN THE ASSESSMENT ORDER STATES THAT ASSESSEES ADDRESS TO BE THE ABOVE ADDRESS AT NEHRU PLACE. 7. IT IS, THEREFORE, EVIDENT THAT THE NOTICES ISSUE D BY THE LEARNED CIT TO THE ASSESSEE WERE ISSUED AT A WRONG ADDRESS. IT IS DUE TO THIS THAT THE ASSESSEE NEVER CAME TO HAVE THE KNOWLEDGE OF TH E PENDENCY OF THE PROCEEDINGS UNDER SECTION 263 OF THE ACT BEFORE THE LEARNED CIT. THE ASSESSEE WAS HENCE PREVENTED BY SUFFICIENT CAUS E FROM APPEARING BEFORE THE LEARNED CIT. 8. IN THIS VIEW OF THE MATTER, THE CASE IS REMITTED TO THE FILE OF THE LEARNED CIT, TO BE DECIDED AFRESH IN ACCORDANCE WIT H LAW, ON AFFORDING ADEQUATE OPPORTUNITY OF HEARING TO THE ASSESSEE. ITA-2124/DEL/2011 4 9. SINCE THE MATTER IS BEING SO REMANDED TO THE LEA RNED CIT, THE MERITS OF THE CASE ARE NOT BEING GONE INTO. 10. IN THE RESULT, FOR STATISTICAL PURPOSES, THE AP PEAL OF THE ASSESSEE IS TREATED AS ALLOWED. DECISION PRONOUNCED IN THE OPEN COURT ON 12 TH AUGUST, 2011. SD/- SD/- (G.E.VEERABHADRAPPA (G.E.VEERABHADRAPPA (G.E.VEERABHADRAPPA (G.E.VEERABHADRAPPA) )) ) ( (( (A.D.JAIN A.D.JAIN A.D.JAIN A.D.JAIN) )) ) VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT VICE PRESIDENT JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER JUDICIAL MEMBER DATED : 12.08.2011. VK. COPY FORWARDED TO: - 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT ASSISTANT REGISTRAR