DCIT, Circle - 3 Kolkata, Kolkata V. M/s. Kamal Forging Pvt. Ltd., Howrah

ITA 2199/KOL/2010

• Counselvise Citation: [2018] 125 COUNSELVISE.COM (IT) 0512 (ITAT-KOLKATA)
• Duration Of Justice: 7 year(s) 8 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-09-2018
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2003-2004
• Appeal Filed On: 13-12-2010
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: P K SRIHARI CIT LD
• Keywords: Principle of natural justice

Judgement Text

1 I.T.A NO. 2199/KOL/2010 M/S. KAMAL FORGIN PVT. LTD. IN THE INCOME TAX APPELLATE TRIBUNAL A BENCH: KOLKATA BEFORE: SHRI P.M. J AGTAP , ACCOUNTANT MEMBER AND SHRI S.S. VISWANETHRA RAVI, JUDICIAL MEMBER I.T.A NO. 2199 /KOL/201 0 A.Y: 20 0 7 - 08 D.C.I.T, CIRCLE - 3, KOLKAT A VS. M/S. KAMAL FORGING PVT. LTD. PAN :AA BCK8956B [APPELLANT] [RESPONDENT] FOR THE APPELLANT : SHRI P.K. SRIHARI, CIT, LD. SR.DR FOR THE RESPONDENT : SHRI NONE APPEARED DATE OF HEARING : 31 - 07 - 2018 DATE OF PRONOUNCEMENT : 12 - 0 9 - 201 8 ORDER SHRI S.S. VISWANETHRA RAVI , JM: TH IS APPEAL BY THE REVENUE IS DIRECTED AGAI NST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS), 1, KOLKATA DT. 31 - 08 - 2010 FOR THE A.Y 2007 - 08 . 2. W HEN THE MATTER WAS CALLED FOR HEARING, NEITHER THE ASSESSE E NOR ANY AUTHORIZED REPRESENTATIVE ON BEHALF OF ASSESSE E APPEARED NOR ANY APPLICAT ION FILED SEEKING FOR ADJOURNMENT. THEREFORE, WE SET EX PARTE OF ASSESSE AND PROCEED TO HEAR THE LD.DR, DISPOSE OF THE APPEAL BY PERUSING THE MATERIAL AVAILABLE ON RECORD. T HE CONTENTION OF THE LD. DR WAS THAT THE CIT - A DELETED THE IMPUGNED ADDITIONS MADE BY THE AO ONLY ON THE GROUND , THAT THERE WAS NO OPPORTUNITY TO ASSESSEE TO CROSS EXAMINE THE PARTY/ PERSON, BASING ON WHICH STATEMENT THE AO MADE THE IMPUGNED ADDITION AND REFERRED TO PAGE - 9 OF THE CIT - A ORDER AND AS SUCH URGED TO REMAND THE MATTER TO THE FILE OF AO IN ORDER TO GIVE AN OPPORTUNITY TO ASSESSE E FOR THE SAME. RELEVANT PORTION OF ORDER OF CIT - A IS REPRODUCED HEREIN BELOW: - IN THE PRESENT CASE, ALL THE DISALLOWANCES WERE MADE ON THE ASSESSE COMPANY ON THE BASIS OF STATEMENTS AND EXPLANATIONS O FFERED BY OFFICIALS FROM M/S. 2 I.T.A NO. 2199/KOL/2010 M/S. KAMAL FORGIN PVT. LTD. VIKAS IRON & STEEL CO. LTD WITHOUT CROSS EXAMINATION. THE VALIDITY OF SUCH EXPLANATIONS FROM THE ASSESSE COMPANY. THUS CLEARLY GOING AGAINST THE VERY BASIC CONCEPTS OF EQUITY AND NATURAL JUSTICE. THIS FACT GOES TO THE HEARD OF THE ARGUMENT. IT RENDERS THE ASSESSMENT BIASED AND ONE SIDED AND PRECLUDES TRUTH FROM EMERGING OUT OF THE CONFLICTING VIEW OBFUSCATING THE ISSUE. IN THE CIRCUMSTANCES AND AS NARRATED ABOVE, THE ADDITION CANNOT STAND IN VIEW OF MY OBSERVATION ABOVE. THIS GROUND SUCCEEDS. 3. IN VIEW OF ABOVE, TAKING INTO CONSIDERATION THE SUBMISSIONS OF THE LD. D R, FACTS AND CIRCUMSTANCES OF THE CASE, AND IN THE INTEREST OF JUSTICE, WE DEEM IT FIT AND PROPER TO REMAND THE MATTER TO THE FILE OF AO TO AFFORD AN OPPORTUNIT Y TO ASSESSEE FOR CROSS EXAMINATION OF SUCH PERSON/PARTY AND TO PASS A N ORDER AS PER LAW, AFTER GIVING THE ASSESSE E ADEQUATE OPPORTUNITY OF HEARING TO ASSESSEE. THE ASSESSE E SHALL BE AT LIBERTY TO FILE REQUISITE EVIDENCES/ EXPLANATIONS TO SUBSTANTIATE IT S CLAIM/CONTENTION. GROUNDS RAISED BY THE REVENUE ARE ALLOWED FOR STATISTICAL PURPOSE . 4 . IN THE RESULT, THE APPEAL OF REVENUE IS ALLOWED FOR STATIS TICAL PURPOSE . ORDER PRONOUNCED IN THE OPEN COURT ON 12 - 0 9 - 2018 SD/ - SD/ - P. M. JAGTAP S.S. VISWANETHRA RAVI ACCOUNTAN T MEMBER JUDICIAL MEMBER DATED : 12 - 0 9 - 2018 PP(SR.P.S.) COPY OF THE ORDER FORWARDED TO: 1. APPELLANT / REVENUE : DEPUTY COMMISSIONER OF INCOME TAX , CIRCLE - 3, DWARLI HOUSE, 2 ND FLOOR, 8/2 ESPLANADE EAST, KOLKATA - 7 00 069. 2 RESPONDENT / ASSESSEE : M/S. KAMAL FORGING PVT. LTD 158/11 BELILIOUS ROAD, HOWRAH 711101. 3. THE CIT(A), 1 KOLKATA 4. 5. CIT , KOLKATA DR, KOLKATA BENCHES, KOLKATA SENIOR PRIVATE SECRETARY / TRUE COPY, BY ORDER, HEAD OF OFFICE, ITAT KOLKATA 3 I.T.A NO. 2199/KOL/2010 M/S. KAMAL FORGIN PVT. LTD.