M/s. Napson Turbochargers Pvt. Ltd., New Delhi V. DCIT, New Delhi

ITA 2213/DEL/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 4209 (ITAT-DELHI)
• Duration Of Justice: 11 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Next Hearing Date: 27-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 10-05-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURJAN MOHANTY
• Keywords: Depreciation; Opportunity of being heard

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH F NEW DELHI BEFORE SHRI R.P. TOLANI AND SHRI B.C. MEENA ITA NO. 2213/DEL/10 ASSTT. YR: 2006-07 M/S NAPCON TURBOCHARGERS PVT. LTD. VS. DCIT CIR. 1 3(1), A-11, DDA COMMERCIAL COMPLEX, NEW DELHI. RING ROAD, DEFENCE COLONY, DELHI-110024. ( APPELLANT ) ( RESPONDENT ) APPELLANT BY : SHRI R.S. SINGHVI FCA RESPONDENT BY : SMT. SURJAN MOHANTY SR. DR O R D E R PER R.P. TOLANI, J.M: : THIS IS ASSESSEES APPEAL AGAINST CIT(A)S EX PART E ORDER DATED 23-2- 2010 RELATING TO A.Y. 2006-07. IN THE MEMO OF APPEA L, FOLLOWING GROUNDS ARE RAISED: 1. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE , THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS B AD IN LAW AND ON THE FACTS OF THE CASE. 2. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEAL) ERRED IN SUSTAI NING THE FOLLOWING DISALLOWANCES: A. OUT OF DEPRECIATION ON HOME THEATRE RS. 19,875/ - B. OUT OF EXCESS DEPRECIATION ON UPS RS. 2,002/- C. OUT OF FOREIGN EXCHANGE LOSS RS. 3,67,598/- D. OUT OF FOREIGN TRAVELLING EXP. RS. 2,32,532/- E. ON ACCOUNT OF EPF/ESI RS. 1,80,663/- 3. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS NOT JUSTIFIE D IN 2 REJECTING THE CLAIM OF THE ASSESSEE WITHOUT TAKING INTO ACCOUNT THE MATERIAL AVAILABLE ON RECORD. 4. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS NOT JUSTIFIE D IN PASSING EX-PARTY ORDER WITHOUT PROVIDING ANY EFFECT IVE, ACTUAL AND REASONABLE OPPORTUNITY TO THE ASSESSEE. 5. THAT ON THE FACTS AND CIRCUMSTANCES OF THE CASE, THE LD. COMMISSIONER OF INCOME TAX (APPEAL) IS NOT JUSTIFIE D IN NOT DECIDING THE APPEAL ON MERIT. 6. THAT THE APPELLANT CRAVE LEAVE TO TAKE ADDITIONA L GROUND OR GROUNDS OF APPEAL OR TO ALTER OR VARY ANY OR ALL THE GROUNDS OF APPEAL BEFORE OR AT THE TIME OF HEARING OF THE APPE AL. 2. LEARNED COUNSEL FOR THE ASSESSEE AT THE OUT SET CONTENDS THAT CIT(A)S ORDER DID NOT REFER TO ANY DATE OF RECEIPT OF NOTI CES OF HEARING BY THE ASSESSEE. DISALLOWANCES MADE BY THE AO HAVE BEEN SU MMARILY UPHELD BY THE CIT(A) BY FOLLOWING CRYPTIC ORDER: THE ABOVE SHOWS THAT THE APPELLANT COMPANY IS NOT INTERESTED TO PURSUE ITS APPEAL AND HENCE, I AM LEFT WITH NO O THER OPTION BUT TO REJECT THE VARIOUS GROUNDS OF APPEALS AND UP HOLD THE DISALLOWANCES MADE BY THE ASSESSING OFFICER. 2.1. IT IS PLEADED THAT EVEN IF THE CIT(A) WANTED T O DECIDE THE APPEAL EX PARTE, THE SAME IS TO BE DONE ON MERITS AND NOT BY A SUMMARILY DISMISSAL AS DONE BY THE ORDER IMPUGNED. IT IS, THEREFORE, PLEAD ED THAT EX PARTE ORDER OF THE CIT(A), DISMISSING THE ASSESSEES APPEAL SUMMAR ILY, MAY BE SET ASIDE AND RESTORED BACK TO THE FILE OF CIT(A) TO DECIDE T HE SAME AFRESH AFTER GIVING THE ASSESSEE AN OPPORTUNITY OF BEING HEARD AND BY P ASSING A REASONED ORDER ON THE ISSUED AGITATED BY THE ASSESSEE. 3. LEARNED DR IS HEARD, WHO SUPPORTS THE ORDER OF C IT(A) ON THE GROUND THAT NUMBER OF NOTICES HAVE BEEN ISSUED. 3 4. WE HAVE HEARD RIVAL SUBMISSIONS AND HAVE GONE TH ROUGH THE ENTIRE MATERIAL AVAILABLE ON RECORD. IN OUR CONSIDERED VIE W CIT(A) CANNOT DISMISS THE ASSESSEES APPEAL SUMMARILY BY HOLDING THAT IT IS NOT INTERESTED IN PURSUING THE APPEAL. ONCE AN APPEAL IS FILED, EVEN IN AN EX PARTE ORDER, CIT(A) HAS TO PASS A REASONED ORDER ON THE GROUNDS RAISED IN THE APPEAL. SINCE THE ASSESSEES GROUNDS HAVE BEEN SUMMARILY DI SMISSED BY THE ABOVE CRYPTIC ORDER, WE REVERSE THE EX PARTE ORDER OF CIT (A), RESTORE THE SAME BACK TO HIS FILE TO DECIDE THE APPEAL AFRESH AFTER SERVI NG NOTICE ON ASSESSEE AND PASS A REASONED ORDER ON THE GROUNDS RAISED BY THE ASSESSEE. WE ORDER ACCORDINGLY. 5. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN OPEN COURT ON 27-04-2011. SD/- SD/- ( B.C. MEENA ) ( R.P. TOLANI ) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 27-04-2011. MP COPY TO : 1. ASSESSEE 2. AO 3. CIT 4. CIT(A) 5. DR 4