M/s. Shreem Industries, Ahmedabad V. The ACIT.,(OSD)Circle-10, Ahmedabad

ITA 2167/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85840 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 27-03-2015
• Assessment Year: 2003-2004
• Appeal Filed On: 01-09-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ROOP CHAND
• Assessee Lawyers: S N DIVETIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH AHMEDABAD , BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER. ITA. NO.2167/AHD/2011 (ASSESSMENT YEAR:2003-04) M/S. SHREEM INDUSTRIES, 3, 2 ND FLOOR, B-JADAV CHAMBERS, ASHRAM ROAD, AHMEDABAD-380009 APPELLA NT VS. ACIT (OSD), CIRCLE-10, AHMEDABAD RESPONDENT PAN: AAHFS2225C /BY APPELLANT : SHRI S. N. DIVETIA, A.R. /BY RESPONDENT : SHRI ROOPCHAND, SR.D.R. !' /DATE OF HEARING : 27.03.2015 #$% !' /DATE OF PRONOUNCEMENT : 31.03.2015 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY ASSESSEE AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS)-XVI, AHMEDABAD , DATED JUNE 17, 2011 FOR A.Y. 2003-04 ON THE FOLLOWING GRO UNDS: ITA NO. 2167/AHD/11 A.Y. 03-04 [M/S. SHREEM INDUSTRIES VS. ACIT(OSD)] PAGE 2 1.1 THE ORDER PASSED BY THE CIT(A)-XVI, AHMEDABAD, ON 17.6.2011 FOR AY 2003-04 CONFIRMING THE PENALTY OF RS.1,60,000/- LEVIED BY A.O. U/S. 271(1) (C ) IS WH OLLY ILLEGAL, UNLAWFUL AND IN TOTAL DISREGARD TO THE FAC TS OF THE CASE. 1.2 THE ID. CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN DISPOSING OFF THE APPEAL EX PARTY , THOUGH THERE WAS A SUFFICIENT CAUSE FOR FAILURE TO APPEAR OR COMPLY WITH THE SAME. 1.3 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CA SE, AS WELL AS IN LAW, THE LD.CIT(A) OUGHT NOT TO HAVE PAS SED EX PARTY ORDER WITHOUT GIVING SUFFICIENT OPPORTUNIT Y TO THE APPELLANT . 2.1 THE LD.CIT(A) HAS GRIEVOUSLY ERRED IN LAW AND/O R ON FACTS IN UPHOLDING THAT THE APPELLANT HAD COMMITTED DEFAULT U/S.271(L)(C) OF FURNISHING IN ACCURATE PARTICULARS OF INCOME IN RESPECT OF FOREIGN TOUR EXPENSES OF SHRI GOPAL SHAH. 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CAS E AS WELL AS IN LAW, THE LD.CIT(A) OUGHT NOT TO HAVE HELD THA T THE APPELLANT HAD FURNISHED INACCURATE PARTICULARS OF INCOME IN RESPECT OF FOREIGN TOUR EXPENSES OF SHRI GOPAL SHAH AND THEREBY CONFIRM PENALTY OF RS.1,60,000. 2. THE MAIN GROUND OF ASSESSEE IS THAT CIT(A) HAS P ASSED EX PARTE ORDER AND NO OPPORTUNITY WAS PROVIDED TO ASSE SSEE. STAND OF ASSESSEE HAS BEEN THAT ASSESSEE WAS NOT SE RVED ANY NOTICE. SO, HE COULD NOT DEFEND HIS CASE BEFORE CI T(A) AND HE SUBMITTED THAT THERE WAS A COMMUNICATION GAP BETWEE N ASSESSEE AND ITS AUTHORIZED REPRESENTATIVE. ASSESS EE SHOULD NOT SUFFER FOR LAPSE ON PART OF HIS AUTHORIZED REPR ESENTATIVE. 2.1 TAKING OVER ALL VIEW OF SITUATION, WE HOLD THAT ASSESSEE SHOULD NOT SUFFER FOR LAPSE ON PART OF AUTHORIZED R EPRESENTATIVE BUT AT THE SAME TIME, APATHY TOWARDS PROCEEDINGS OF LOWER ITA NO. 2167/AHD/11 A.Y. 03-04 [M/S. SHREEM INDUSTRIES VS. ACIT(OSD)] PAGE 3 AUTHORITIES CANNOT BE ENCOURAGED. SO, IN THE INTER EST OF JUSTICE, WE SET ASIDE THE ORDER OF CIT(A) WITH DIRE CTION TO DECIDE THE SAME AS PER LAW AND FACT AFTER PROVIDING DUE OP PORTUNITY OF HEARING TO ASSESSEE, SUBJECT TO PAYMENT OF COST OF RS.5,000/- IN THE LEGAL AID. SINCE, WE ARE RESTORING THE MATT ER ON PRELIMINARY ISSUE, SO, WE ARE REFRAINING OURSELVES TO COMMENT ON THE MERIT OF ISSUE AT HAND. 3. AS A RESULT, APPEAL FILED BY ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS THE 31 ST DAY OF MARCH, 2015. SD/- SD/- (ANIL CHATURVEDI) (SHAILENDRA KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD: DATED 31/03/2015 TRUE COPY S.K.SINHA & & & & ' ' ' ' ('% ('% ('% ('% / COPY OF ORDER FORWARDED TO:- 1. +, / REVENUE 2. / ASSESSEE 3. // 0 / CONCERNED CIT 4. 0- / CIT (A) 5. '45 , , / DR, ITAT, AHMEDABAD 6. 589 :; / GUARD FILE. BY ORDER / & ,