SUN N STAR ADVERTISING PVT. LTD.., MUMBAI V. DCIT , CIRCLE - 3 , THANE

ITA 2243/MUM/2019

• Counselvise Citation: [2020] 110 COUNSELVISE.COM (IT) 4699 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 15-10-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: SMC
• Assessment Year: 2009-2010
• Appeal Filed On: 10-04-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: UDAYA BHASKAR JAKKE
• Keywords: Opportunity of being heard
• Section: 147

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES SMC , MUMBAI BEFORE S HRI S AKTIJIT DEY (J M) ITA NO. 2243 /MUM/2019 ASSESSMENT Y EAR: 2009 - 10 M/S SUN N STAR ADVERTISING PVT. LTD., 306, NITCO BIZ PARK, ROAD NO. 16, WAGLE ESTATE, THANE (W) - 400604 PAN: AAICS8518C VS. THE DY. CIT, CIRCLE - 3, ASHAR IT PARK, 6 TH FLOOR, WAGLE ESTATE, THANE (W) - 400604 (APPELLANT) (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI UDAYA BHASKAR JAKKE (DR) DATE OF HEARING: 08/10 /202 0 DATE OF PRONOUNCEMENT: 15 / 10/2020 O R D E R PER S AKTIJIT DEY , JM THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 31.07.2017 OF LD. COMMISSI ONER OF INCOME TAX (APPEALS) - 2 , THANE PERTAINING TO THE ASSESSMENT YE AR 2009 - 10 . 2. WHEN THE APPEAL WAS CALLED FOR HEARING NO ONE APPEARED ON BEHALF OF THE ASSESSEE TO REPRESENT THE CASE. CONSIDERING THE NATURE OF DISPUTE, I PROCEED TO DISPOSE OF THE APPEAL EX - PARTE QUA THE ASSESSEE AFTER HEARING THE LD. DEPARTMENTAL REPRESENTATIVE AND BASED ON MATERIAL AVAILABLE ON RECORD. THE DISPUTE IN THE PRESENT APPEAL IS CONFINED TO ADDITION MADE ON ACCOUNT OF NON - GENUINE PURCHASES. 3. BR IEFLY THE FACTS ARE , THE ASSESSEE IS A RESIDENT COMPANY . FOR THE ASSESSMENT YEAR U NDER D ISPUTE THE ASSESSEE FILED ITS RETURN OF INCOME ON 30.09.2009 DECLARING TOTAL INCOME AT RS. 22,98,260/ - . BASED ON INFORMATION RECEIVED FROM SALES TAX DEPARTMENT, GOVT. OF MAHARASHTRA, THAT THE ASSESSEE IS 2 ITA NO. 2243 / MUM/2019 ASSESSMENT YEAR: 2009 - 1 0 A BENEFICIARY OF ACCOMMODATION BILLS PROVIDED BY CER TAIN ENTITIES IDENTIFIED AS HAWALA OPERATOR S , THE ASSESSING OFFICER REOPENED THE ASSESSMENT U/ S 147 OF THE ACT. IN COURSE ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER CALLED UPON THE ASSESSEE TO PROVE THE GENUINENESS OF PURCHASES WORTH RS. 10,60,313/ - CLAI MED HAVE BEEN MADE DURING THE YEAR FROM TWO PARTIES. NOT BEING SATISFIED WITH THE EXPLANATION OF THE ASSESSEE , THE ASSESSING OFFICER TREATED THE ENTIRE PURCHASES AS NON - GENUINE AND ADDED BACK TO THE INCOME OF THE ASSESSEE . THOUGH , THE ASSESSEE CHALLENGED T HE AFORESAID ADDITION BEFORE LEARNED COMMISSIONER (APPEALS), H OWEVER, THE ADDITION MADE WAS SUSTAINED. 4. I HAVE HEARD THE LD. DEPARTMENTAL REPRESENTATIVE AND PERUSED THE MATERIAL ON RECORD. AS COULD BE SEE N FROM THE IMPUGNED ORDER OF LEARNED COMMISS IONER (APPEALS), THE APPEAL WAS DECIDED EX - PARTE WHILE SUSTAINING THE ADDITION MADE BY THE ASSESSING OFFICER . T HOUGH , IN PARAGRAPH 2 OF THE APPEAL ORDER LEARNED CO MMISSIONER (APPEALS) HAS MENTIONED THAT ON THE FOUR OCCASIONS THE APPEAL WAS FIXED FOR HEARIN G NEITHER ANYONE APPEARED NOR ANY REQUE ST FOR ADJOURNMENT WAS RECEIVED, H OWEVER, IT IS NOT FORTHCOMING WHETHER THE NOTICES ISSUED BY LEARNED COMMISSIONER (APPEALS) W ERE AT ALL SERVED ON THE ASSESSEE . THUS, IN MY CONSIDERED OPINION, THE ASSESSEE DESERVES AN OPPORTUNITY TO A PPEAR AND EXPLAIN ITS CASE BEFORE LEARNED COMMISSIONER (APPEALS) , WHICH , THE ASSESSEE COULD NOT DO DUE TO EX - PARTE DISPOSAL OF THE APPEAL. ACCORDINGLY, I AM INCLINED TO SET ASI DE THE IMPUGNED ORDER OF LEARNED COM MISSIONER (APPEALS) AND RES TORE THE ISSUES BACK TO HIS FILE FOR FRESH ADJUDICATION AFTER PROVIDING DUE AND PROPER OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. NEEDLESS TO MENTION, THE ASSESSEE MUST ALSO COOPERATE IN FINALIZING THE PROCEEDINGS BY APPEAR ING BEFORE LEARNED COMMISSIONER (APPEALS) I N RESPONSE TO THE NOTICE FOR HEARING TO BE ISSUED BY HIM. WITH THE A FORESAID OBSERVATION S, GROUNDS ARE ALLOWED FOR STATISTICAL PURPOSES. 5. IN THE RESULT APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 3 ITA NO. 2243 / MUM/2019 ASSESSMENT YEAR: 2009 - 1 0 ORDER PRONOUNCED IN THE OPEN COU RT ON 15 TH O CTOBER , 2020 . SD/ - S AKTIJIT DEY ( JUDICIAL MEMBER ) MUM BAI ; DATED: 15 / 10/2020 ALINDRA, PS / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT(A) - 4. / CIT 5. , , / DR, ITAT, MUMBAI 6. / GUARD FILE . / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI