Swiss Pack Pvt Ltd, Baroda V. The Income tax Officer Wd 4(3), Baroda

ITA 2256/AHD/2010

• Counselvise Citation: [2010] 135 COUNSELVISE.COM (IT) 9896 (ITAT-AHMEDABAD)
• Duration Of Justice: 2 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2010
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: 2003-2004
• Appeal Filed On: 06-07-2010
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: K M MAHESH
• Assessee Lawyers: NISHANT VYAS
• Keywords: Opportunity of being heard; Set aside
• Section: 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH AHMEDABAD (BEFORE S/SHRI BHAVNESH SAINI, JM AND D. C. AGRAWAL , AM) ITA NO.2256/AHD/2010 A.Y.: 2003-04 SWISS PACK PVT. LTD. , AT & POST DABHASA, PADRA JAMBUSAR ROAD, DIST. BARODA BARODA VS THE INCOME TAX OFFICER, WARD-4(3), AAYAKAR BHAVAN, RACE COURSE CIRCLE, BARODA PA NO. AADCS 2724 B (APPELLANT) (RESPONDENT) APPELLANT BY SHRI NISHANT VYAS, AR RESPONDENT BY SHRI K. M. MAHESH, DR O R D E R PER BHAVNESH SAINI: THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LEARNED CIT(A)-III, BARODA DATED 03 RD FEBRUARY, 2010 FOR ASSESSMENT YEAR 2003-04 CHALLENGING REJECT ION OF BOOKS OF ACCOUNT AND CONFIRMATION OF ADDITION OF RS.10,98,09 5/- AND DISALLOWANCE OF BAD DEBT AMOUNTING TO RS.98,450/-. THE LEARNED C IT(A) NOTED IN THE IMPUGNED ORDER THAT SEVERAL OPPORTUNITIES HAVE BEEN GIVEN TO THE ASSESSEE TO ARGUE THE APPEAL. HOWEVER, ON NONE OF T HE DATES OF HEARING THE ASSESSEE ATTENDED THE HEARING. THE LEARNED CIT( A), THEREFORE, CONSIDERING THE FINDINGS OF THE AO CONFIRMED THE OR DER AND DISMISSED THE APPEAL OF THE ASSESSEE. 2. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMITTED T HAT THE LEARNED CIT(A) HAS NOT DECIDED THE APPEAL ON MERIT, THEREFO RE, THE MATTER MAY BE REMANDED TO HIM FOR DECISION IN ACCORDANCE WITH LAW . ON THE OTHER HAND, ITA NO.2256/AHD/2010 SWISS PACK PVT. LTD. VS ITO,W-4(3), BARODA 2 THE LEARNED DR RELIED UPON THE ORDERS OF THE AUTHOR ITIES BELOW AND SUBMITTED THAT THE ASSESSEE EVEN DID NOT COMPLY WIT H THE SHOW CAUSE NOTICE BEFORE THE AO AND THAT THE ASSESSEE DID NOT APPEAR BEFORE THE LEARNED CIT(A) ON ANY OF THE DATES OF HEARING, THER EFORE, THE APPEAL OF THE ASSESSEE WAS RIGHTLY DISMISSED. 3. ON CONSIDERATION OF THE RIVAL SUBMISSIONS, WE AR E OF THE VIEW THAT THE MATTER REQUIRES RECONSIDERATION BY THE LEARNED CIT(A). ACCORDING TO SECTION 250 (6) OF THE IT ACT, THE LEARNED CIT(A) I S REQUIRED TO MENTION THE POINT FOR DETERMINATION IN THE IMPUGNED ORDER AND R EASONS FOR DECISION. IN THE IMPUGNED ORDER, THE LEARNED CIT(A) BRIEFLY N OTED THE FACTS OF THE CASE AND DISMISSED THE APPEAL OF THE ASSESSEE PRACT ICALLY IN DEFAULT OF THE ASSESSEE IN PUTTING APPEARANCE BEFORE HIM. EVEN ON BAD DEBT, ADDITION HAS BEEN CONFIRMED DESPITE NOW THE ISSUE I S FINALLY SETTLED BY THE HONBLE SUPREME COURT IN THE CASE OF T. R. F. L TD. VS CIT 323 ITR 397 IN FAVOUR OF THE ASSESSEE. IT WOULD, THEREFORE, SHOW THAT THE LEARNED CIT(A) DID NOT DECIDE THE APPEAL OF THE ASSESSEE ON MERIT AND NO REASONS FOR DECISION HAVE BEEN GIVEN IN THE IMPUGNED ORDER. EVEN IF, THE ASSESSEE DID NOT APPEAR BEFORE THE LEARNED CIT(A), IT IS INCUMBENT ON THE PART OF THE LEARNED CIT(A) TO HAVE DECIDED THE APPE AL OF THE ASSESSEE ON MERIT GIVING REASONS FOR DECISION IN THE IMPUGNED O RDER. IN THE ABSENCE OF REASONS FOR DECISION IN THE ORDER AND THAT THE A PPEAL IS NOT DECIDED ON MERIT, WE SET ASIDE THE ORDER OF THE LEARNED CIT(A) AND RESTORE THE APPEAL OF THE ASSESSEE TO HIS FILE WITH DIRECTION TO RE-DE CIDE THE APPEAL OF THE ASSESSEE ON MERIT BY GIVING REASONS FOR DECISION IN THE IMPUGNED ORDER. THE LEARNED CIT(A) SHALL GIVE REASONABLE SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. ITA NO.2256/AHD/2010 SWISS PACK PVT. LTD. VS ITO,W-4(3), BARODA 3 4. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22-09-2010 SD/- SD/- (D. C. AGRAWAL) ACCOUNTANT MEMBER (BHAVNESH SAINI) JUDICIAL MEMBER DATE : 22-09-2010 LAKSHMIKANT/- COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT 2. THE RESPONDENT 3. THE CIT CONCERNED 4. THE CIT(A) CONCERNED 5. THE DR, ITAT, AHMEDABAD 6. GUARD FILE BY ORDER DY. REGISTRAR, ITAT, AHMEDABAD