ROTHSHIELD HEALTH CARE (TPA) SERVICES LTD, MUMBAI V. ITO 1(3)(1), MUMBAI

ITA 2225/MUM/2017

• Counselvise Citation: [2019] 115 COUNSELVISE.COM (IT) 3098 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 6 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Assessment Year: 2008-2009
• Appeal Filed On: 30-03-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D G
• Assessee Lawyers: DINESH SHAH
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 271(1)(c); 143(3); 201

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D , MUMBAI BEFORE SHRI B.R. BASKARAN , ACCOUNTANT MEMBER AND SHRI RAVISH SOOD, JUDICIAL MEMBER ITA NO. 2 225 /MUM/201 7 ASSESSMENT YEAR : 20 08 - 09 M/S. ROTHSHIELD HEALTH CARE (TPA) SERVICES LTD., RAHEJA CHAMBERS, FREE PRESS JOURNAL MARG, NARIMAN POINT, MUMBAI [PAN : AA DCR3362C ] VS. IT O - 1( 3 )( 1 ), MUMBAI (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI D INESH SHAH, RESPONDENT BY : S HRI D.G. PANSARI, SR.AR - CIT DATE OF HEARING : 05 - 03 - 201 9 DATE OF PRONOUNCEMENT : 05 - 03 - 201 9 O R D E R PER B.R. BASKARAN , ACCOUNTANT MEMBER: TH E ASSESSEE HAS FILED THIS APPEAL, CHALLENGING THE ORDER DATED 07 - 02 - 2017 PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS) - 3, MUMBAI, CONFIRMING THE PENALTY LEVIED BY THE ITA NO. 2 225 /MUM/ 20 1 7 : 2 : ASSESSING OFFICER (AO) U/S. 271(1)(C) OF THE INCOME TAX ACT (ACT). 2. WE HAVE HEARD THE PARTIES AND PERUSED THE RECORD. 3. THE ASSESSMENT ORDER IN THE PRESENT CASE WAS PASSED U/S. 143(3) OF THE ACT ON 23 - 12 - 20 10. THE ASSESSEE CHALLENGED THE ASSESSMENT ORDER BY FILING THE APPEAL BEFORE THE LD. CIT(A) AND THE FIRST APPELLATE AUTHORITY DISPOSED - OF THE APPEAL OF THE ASSESSEE ON 03 - 08 - 2018 . BEFORE THE RECEIPT OF THE ORDER OF LD. CIT(A), THE AO HAS PASSED THE IMPUGNED PENALTY ORDER U/S. 271(1)(C) OF THE ACT ON 11 - 11 - 2013. 4. THE CASE OF THE LD. AR IS THAT THE APPEAL OF THE ASSESSEE WAS ALLOWED BY THE LD. CIT(A) PARTLY, MEANING THEREBY , THE A SSESSEE GOT CERTAIN RELIEF AGAINST THE ADDITIONS MADE BY THE AO. HE SUBMITTED THAT THE PROVISIONS OF SECTION 275(1)(A) OF THE ACT PROVIDES EXTENDED TIME LIMIT FOR PASSING THE IMPUGNED PENALTY ORDER WHEN THE ASSESSMENT ORDER IS THE SUBJECT MATTER OF APPEAL BEFORE THE LD. CIT(A). ACCORDINGLY, THE LD. AR SUBMITTED THAT THE PENALTY ORDER PASSED BY THE AO REQUIRES RE - CONSIDERATION AT HIS END BY DULY CONSIDERING THE APPEAL ORDER PASSED BY THE LD. CIT(A) IN THE QUANTUM ASSESSMENT ITA NO. 2 225 /MUM/ 20 1 7 : 3 : PROCEEDINGS . HE SUBMITTED THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) IS ALSO MUCH PRIOR TO THE ORDER PASSED BY HIM AGAINST QUANTUM ASSESSMENT PROCEEDINGS. 5. LD. DR ON THE CONTRARY SUPPORTED THE ORDER PASSED BY THE LD. CIT(A ). 6. HAVING HEARD THE RIVAL CONTENTIONS, WE ARE OF THE VIEW THAT THERE IS MERIT IN THE CONTENTIONS OF THE ASSESSEE . W E NOTICE THAT THE IMPUGNED PENALTY ORDER AS WELL AS THE APPELLATE ORDER HAS BEEN PASSED BY THE TAX AUTHORITIES BEFORE THE DISPOSAL OF THE APPEAL IN QUANTUM ASSESSMENT PROCEEDINGS BY THE LD. CIT(A). THE ASSESSEE FURNISHED A COPY OF THE APPELLATE ORDER DT. 03 - 08 - 2018 , PASSED IN THE QUANTUM ASSESSMENT PROCEEDINGS AS PER WHICH THE APPEAL OF THE ASSESSEE IS PARTLY ALLOWED. ACCORDINGLY, IN THE INTEREST OF NATURAL JUSTICE, WE ARE OF THE VIEW THAT THE ISSUES CONTESTED IN THE PRESENT APPEAL REQUIRES RE - EXAMINATION AT THE END OF THE AO BY DULY CONSIDERING THE APPELLATE ORDER PASSED IN THE QUANTUM ASSESSMENT PROCEEDINGS. ACCORDINGLY, WE SET ASIDE THE ORDER PASSED BY THE LD. CIT(A) AND RESTORE ALL THE ISSUES TO ITA NO. 2 225 /MUM/ 20 1 7 : 4 : THE FILE OF AO FOR EXAMINING AFRESH, AFTER A FF ORDING ADEQ UATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL OF ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 5 TH DAY OF MA R CH , 2019 SD/ - SD/ - (RAVISH SOOD ) ( B. R . BASKARAN ) / JUDICIAL MEMBER / ACCOUNTANT MEMBER / MUMBAI; / DATED : 5 TH MARCH , 201 9 TNMM ITA NO. 2 225 /MUM/ 20 1 7 : 5 : / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) , MUMBAI 4. / CIT, MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE / BY ORDER, //TRUE COPY// / (DY./ASST. REGISTRAR) , / ITAT, MUMBAI