TELECOM COMMUNICATIONS, SRINAGAR V. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-3, SRINAGAR

ITA 238/ASR/2022

AI Insights

The case involves Telecom Communications, the appellant, contesting an order from the CIT(A) National Faceless Appeal Centre (NFAC), Delhi, regarding the Assessment Year 2015-16. The appellant challenged the order on the grounds of violation of the principle of natural justice, as the CIT(A) had disposed of the appeal before the final hearing date. The tribunal agreed with the appellant's contention, citing a similar case (Executive Sales Pvt. Ltd. v. ITO) that emphasized the necessity of providing a reasonable opportunity of being heard. Consequently, the matter was remanded back to the CIT(A) for a fresh hearing.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 114404 (ITAT-AMRITSAR)
• Duration Of Justice: 6 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-06-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 18-06-2023
• Assessment Year: 2015-2016
• Appeal Filed On: 30-11-2022
• Other Referred Cases: Executive Sales Pvt. Ltd. v. ITO
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice
• Section: 68; 250

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH, AMRITSAR (VIRTUAL COURT) BEFORE DR. M. L. MEENA, ACCOUNTANT MEMBER AND SH. ANIKESH BANERJEE, JUDICIAL MEMBER I.T.A. No. 238/Asr/2022 Assessment Year: 2015-16 Telecom Communications 1, Lal Chowk Amira Kadal, Srinagar, Jammu & Kashmir 190001 [PAN: AAIFT 0823G] (Appellant) V. Income Tax Officer, Ward 3(2), Srinagar (Respondent) Appellant by Sh. Bashir Ahmad Lone, CA Respondent by Sh. Prashant Singh, Sr. DR Date of Hearing : 19.06.2023 Date of Pronouncement : 22.06.2023 ORDER Per Dr. M. L. Meena, AM: This appeal has been filed by the assessee against the order of the Ld. CIT(A) National Faceless Appeal Centre (NFAC), Delhi dated I.T.A. No. 238/Asr/2022 Telecom Communications v. Dy. CIT 2 29.09.2022 in respect of Assessment Year 2015-16 challenging therein the impugned order on account of principle of natural justice. 2. At the outset, the ld. AR for the assessee submitted that the ld. CIT(A) NFAC has disposed of appeal of the assessee prior to the date fixed for final hearing, hence, the order passed by the NFAC is bad in law. He contended that the assessee was deprived of filing of necessary submissions as the ld. CIT(A) NFAC passed the order prior to the date of hearing fixed, therefore, the order is bad in law. He requested that the impugned order may be remanded back to the ld. CIT(A) to adjudicate the issue afresh after granting adequate opportunity of being heard. 3. The ld. DR stands by the impugned order. 4. We have heard the rival contentions, perused the material available on record and the impugned order. Admittedly, the ld. CIT(A)/NFAC has passed the impugned order prior to the date fixed for final hearing. It is seen that as per the final notice issued u/s 250 of the Act dated 26.09.2022, the appellant was asked to submit its reply on or before 11.10.2020. However, the NFAC disposed of the appeal on 29.09.2022. Thus, the appeal was disposed of 12 days is prior to the date of final hearing. Meaning thereby the appellant was deprived from furnishing the I.T.A. No. 238/Asr/2022 Telecom Communications v. Dy. CIT 3 requisite details as per the annexure to the notice u/s 250 of the Act fixing the date of hearing on 11.10.2022 as above. We are of the considered opinion that such an act on the part of the ld. CIT(A)/NFAC is held to be in gross violations of principles of natural justice. 5. In the case of Executive Sales Pvt. Ltd. v. ITO that ITAT Delhi Benches held that a reasonable opportunity of being heard should be given to the assessee as per the principles of natural justice, irrespective the fact that the number of 10 times opportunity of being heard had already been given to the assessee. 6. Considering the facts of the case, we are of the considered view that this is a fit case to be restored back to the ld. CIT(A) to adjudicate the matter afresh after granting fresh opportunity of being heard to the appellant assessee to enable him to furnish the requisite details as per annexure enclosed to the notice fixing the hearing of the assessee as on 11.10.2022 or any further query raised. The ld. CIT(A) is directed to consider the written submission so filed during the course of appellate proceedings and issue a show cause notice on the issue of disputed additions made u/s 68 is being challenged by the appellant. Accordingly, the matter is remanded back to the file of the ld. CIT(A) to adjudicate the I.T.A. No. 238/Asr/2022 Telecom Communications v. Dy. CIT 4 appeal afresh after granting adequate opportunity of being heard. No doubt, the assessee shall cooperate in the fresh proceedings before the ld. CIT(A)/NFAC. 7. In the result, the appeal filed by the assessee is allowed for statistical purposes. Order pronounced in the open court on 22.06.2023 Sd/- Sd/- (Anikesh Banerjee) (Dr. M. L. Meena) Judicial Member Accountant Member *GP/Sr./P.S.* Copy of the order forwarded to: (1)The Appellant (2) The Respondent (3) The CIT (4) The CIT (Appeals) (5) The DR, I.T.A.T. True Copy By Order