M/s Tirupati Balaji Fiber Ltd., Muzaffarnagar V. ITO, New Delhi

ITA 2383/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3707 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 18-10-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2007-2008
• Appeal Filed On: 29-04-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC, NEW DELHI BEFORE MS. DIVA SINGH, JUDICIAL MEMBER ITA NO. 2383/DEL/2016 ASSESSMENT YEAR: 2006-07 CANTON SOFTWARE PVT. LTD, 1378/21, 3 RD FLOOR, NAI WALA KAROL BAGH, NEW DELHI VS. ITO WARD-3(2) NEW DELHI PAN :AACCC6410F (APPELLANT) (RESPONDENT) O R D E R PER DIVA SINGH, J.M. : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A SSAILING THE CORRECTNESS OF THE ORDER DATED 11.11.2014 OF CIT(A)-VI, NEW DELHI PER TAINING TO 2006-07 ASSESSMENT YEAR. ON VARIOUS GROUND INCLUDING GROUND NO. 1 WHIC H READS AS UNDER: THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE A PPELLANTS CASE, THE LEARNED CIT(A), ERRED IN DISMISSING THE APPEAL IN ABSENCE OF ANY DE TAILS/DOCUMENTS ON RECORDS. HENCE, OPPORTUNITY OF BEING HEARD SHOULD BE GIVEN TO THE A PPELLANT FOR THE SAKE OF NATURAL JUSTICE. 2. THE LEARNED AR MR. AKSHAT JAIN APPEARING ON BEHA LF OF THE ASSESSEE SUBMITTED THAT THE NOTICE STATED TO HAVE BEEN SENT TO THE ASS ESSEE WAS NEVER RECEIVED BY THE ASSESSEE. ACCORDINGLY IT WAS HIS PRAYER THAT THE IM PUGNED ORDER MAY BE SET ASIDE PROVIDING THE ASSESSEE AN OPPORTUNITY OF BEING HEAR D. APPELLANT BY SH. AKSHAT JAIN, CA RESPONDENT BY SH. T. VASANTHAN, SR. D.R. DATE OF HEARING 24-08-2017 DATE OF PRONOUNCEMENT 18.10.2017 2 ITA NO.2383 /DEL/2017 3. THE SR. DR CONSIDERING THE FACT THAT THE EXPLANA TION OF THE ASSESSEE FOR NON REPRESENTATION AND NOTING THAT THE IMPUGNED ORDER IS AN EX-PARTE ORDER HAD NO OBJECTION IF THE ISSUE IS RESTORED BACK TO THE FILE OF THE CI T(A). 4. I HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED T HE MATERIAL ON RECORD. CONSIDERING THE SUBMISSIONS OF THE ASSESSEE, I AM O F THE VIEW THAT ADMITTEDLY FOR REASONS BEYOND THE CONTROL OF THE ASSESSEE, THE ASS ESSEE REMAINED UNREPRESENTED. EVEN OTHERWISE IT IS NOTED THAT THE ORDER PASSED BY THE CIT(A) IS CONTRARY TO THE STATUTORY REQUIREMENTS AS SET OUT IN SUB SECTION (6) OF SECT ION 250 OF THE INCOME TAX ACT. THE ACT REQUIRES THAT THE CIT(A) SHALL DISPOSE THE APPEAL BY AN ORDER IN WRITING AND SHALL STATE THE POINTS FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR THE DECISION. A PERUSAL OF THE RECORD SHOWS THAT THE APPEAL OF THE ASSESSEE HA S INSTEAD BEEN DISMISSED RELYING UPON THE DECISION OF THE ITAT IN THE CASE OF CIT VS. MULTIPLAN INDIA PVT. LTD 38 ITD 28. ACCORDINGLY, IN ORDER TO SET RIGHT THE STATUTORY D EFICIT THE IMPUGNED ORDER IS SET ASIDE DIRECTING THE LEARNED CIT(A) TO PASS A SPEAKING ORD ER, IN ACCORDANCE WITH LAW AFTER GIVING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEI NG HEARD. IT IS HOPED THAT THE OPPORTUNITY SO PROVIDED IS NOT ABUSED BY THE ASSESS EE AND IS UTILIZED FULLY AND FAIRLY BY MAKING PROPER COMPLIANCES FAILING WHICH IT IS MADE CLEAR THAT THE IN THE EVENTUALITY OF ABUSE THE CIT(A) WOULD BE AT LIBERTY TO PASS SPEAK ING ORDER ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. THE ORDER IS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 5. IN THE RESULT, APPEAL OF ASSESSEE IS ALLO WED FOR STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 18.10.201 7.) SD/- (DIVA SINGH) DATED : 18.10.2017 JUDICIAL MEMBER SH/ BINITA COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTRAR, I TAT NEW DELHI 3 ITA NO.2383 /DEL/2017 DATE 1. DRAFT DICTATED ON 24.08.2017 PS 2. DRAFT PLACED BEFORE AUTHOR 13.09.2017 PS 3. DRAFT PROPOSED & PLACED BEFORE THE SECOND MEMBER 13.09.2017 JM/AM 4. DRAFT DISCUSSED/APPROVED BY SECOND MEMBER. 18.10 .2017 JM/AM 5. APPROVED DRAFT COMES TO THE SR.PS/PS .2017 PS/PS 6. KEPT FOR PRONOUNCEMENT ON PS 7. FILE SENT TO THE BENCH CLERK 2017 P S 8. DATE ON WHICH FILE GOES TO THE AR 9. DATE ON WHICH FILE GOES TO THE HEAD CLERK. 10. DATE OF DISPATCH OF ORDER.