S K Mineral Handling Pvt Ltd., Keonjhar V. JCIT, Range-1, Cuttack

ITA 239/CTK/2017

• Counselvise Citation: [2018] 126 COUNSELVISE.COM (IT) 4371 (ITAT-CUTTACK)
• Duration Of Justice: 7 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2012-2013
• Appeal Filed On: 14-06-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: D K PRADHAN
• Assessee Lawyers: A P MISHRA
• Keywords: Opportunity of being heard; Principle of natural justice; Right to appeal

Judgement Text

1 ITA NO.239/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 IN THE INCOME TAX APPELLATE TRIBUNAL, CUTTACK BENCH, CUTTACK BEFORE S/SHRI N.S SAINI, ACCOUNTANT MEMBER AND PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 239 /CTK/201 7 ASSESSMENT YEAR : 20 12 - 2013 S.K.MINERAL HANDLING PVT LTD., NEAR NEW BUS STAND, KALINGA ROAD, BARBIL, KEONJHAR VS. JCIT, RANGE - 1, CUTTACK PAN/GIR NO. AAICS 5650 H (APPELLANT ) .. ( RESPONDENT ) ASSESSEE BY : SHRI A.P.MISHRA, AR REVENUE BY : SHRI D.K.PRADHAN, DR DATE OF HEARING : 30 / 01 / 201 8 DATE OF PRONOUNCEMENT : 31 / 0 1/ 201 8 O R D E R PER PAVAN KUMAR GADALE, JM TH E APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT(A) - CUTTACK DATED 20.3.2017 FOR THE ASSESSMENT YEAR 2012 - 2013. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1) FOR THAT THE LD. CIT(A) IS WHOLLY UNJUSTIFIED IN CONFIRMING THE DISALLOWANCE OF AN AMOUNT OF RS.34,01,046/ - U/S - 14(A). THE SAID SECTION 14(A) IS NOT APPLICABLE TO THE FACTS OF THE APPELLANT. THE DISALLOWANCE IS NEITHER BASED ON ANY FACTS NOR PERMITTED IN THE EYE OF LAW AND HENCE NEEDS TO BE DELETED IN FULL. 2) FOR THAT THE CIT(A) ERRED IN LAW IN HOLDING THAT THE DONATION PAID FOR RS.3,68,557/ - WAS INADMISSIBLE ON THE FACTS AND 2 ITA NO.239/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 CIRCUMSTANCES OF THE CASE. HENCE, THE AMOU NT NEEDS TO BE ALLOWED IN FULL. 3) FOR THAT THE CIT(A) OUGHT NOT TO HAVE CONFIRMED THE DISALLOWANCE FOR THE CLAIM OF RS.5,06,279/ - PAID BY THE APPELLANT TOWARDS PROVIDENT FUND DUES. THE CLAIM OF EPF DEPOSIT NEEDS TO BE ALLOWED IN FULL. 4) FOR THAT THE LD. CIT (A) WAS NOT JUSTIFY IN DISPOSING THE APPEAL EX - PARTY WITHOUT OFFERING PROPER OPPORTUNITY OF HEARING TO THE APPELLANT. HENCE, THE ORDER PASSED WITHOUT OPPORTUNITY NEEDS TO BE SET ASIDE FOR THE SHAKE OF NATURAL JUSTICE. 5) FOR THAT ANY OTHER GROUND S SHALL BE PRESSED ON OR BEFORE THE DATE OF HEARING. 3. AT THE TIME OF HEARING, LD A.R. OF THE ASSESSEE FILED AN ADJOURNMENT PETITION TO ADJOURN THE MATTER ON THE GROUND THAT THE ASSESSEE HAS EXECUTED A VAKALATANAMA ON 29.1.2018 IN FAVOUR OF THE CONDUCTI NG COUNSEL AND, ACCORDINGLY, THE PAPER BOOK HAS BEEN FILED ON 29.1.2018. HOWEVER, THE LD A.R. DID NOT PRESS THE ADJOURNMENT PETITION. THEREFORE, WE REJECT THE ADJOURNMENT PETITION FILED BY THE LD A.R. OF THE ASSESSEE AND PROCEED TO ADJUDICATE THE APPEAL AFTER HEARING THE LD REPRESENTATIVES OF PARTIES AND ON THE BASIS OF MATERIAL AVAILABLE ON RECORD. 4. BEFORE US , LD A.R. OF THE ASSESSEE RELIED ON THE GROUNDS OF APPEAL AND SUBMITTED THAT CIT(A) DISMISSED THE ASSESSEE'S APPEAL EXPARTE WITHOUT ASSIGNING PROPER REASON S AND PASSED A NON - SPEAKING ORDER AND PRAYED FOR AN OPPORTUNITY TO SUBSTANTIATE ITS CASE BEFORE THE APPELLATE AUTHORITY. 5 . CONTRA, L D D.R. SUPPORTED THE ORDER S OF THE CIT(A). 3 ITA NO.239/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 6 . WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUS ED THE ORDER OF THE CIT(A) . WE FIND THAT THE CIT(A) MADE AN OBSERVATION THAT THERE WAS NO COMPLIANCE BY THE ASSESSEE ALTHOUGH VARIOUS OPPORTUNITIES WERE PROVIDED TO THE ASSESSEE . WE ARE OF THE OPINION THAT THERE MAY BE VARIOUS REASONS FOR THE ASSESSEE IN NON - COMPLIANCE BUT AS PRAYED BEFORE US AND CONSIDERING THE PRINCIPLE OF NATURAL JUSTICE, WE TAKE SUPPORT ON OUR VIEW ON THE JUDICIAL DECISION OF T HE HONBLE ORISSA HIGH COURT IN THE CASE OF RADHIKA CHARAN BANERJEE V SAMBALPUR MUNICIPALITY, AIR 1979 ORISSA 69, WHEREIN, IT HAS BEEN HELD THAT RIGHT OF APPEAL WHEREVER CONFERRED INCLUDES A RIGHT OF BEING AFFORDED OPPORTUNITY OF BEING HEARD IRRESPECTIVE OF LANGUAGE CONFERRING SUCH RIGHT THAT IS A PART AND PARCEL OF PRINCIPLES OF NATURAL JUSTICE. WHERE AN AUTHORI TY IS REQUIRED TO ACT IN A QUASI - JUDICIAL CAPACITY, IT IS IMPERATIVE TO GIVE APPELLANT AN ADEQUATE OPPORTUNITY OF BEING HEARD BEFORE DECIDING THE APPEAL. THE AIM OF THE RULE OF NATURAL JUSTICE IS TO PREVENT MISCARRIAGE OF JUSTICE AND DENIAL OF PRINCIPLES OF AUDI ALTERAM PARTEM RESULTS INTO SUCH MISCARRIAGE OF JUSTICE. ACCORDINGLY, WE, IN ORDER TO IMPART SUBSTANTIAL JUSTICE TO THE ASSESSEE, RESTORE THE APPEAL BACK TO THE FILE OF THE LEARNED CIT(A) TO ADJUDICATE ON MERITS AFTER PROVIDING REASONABLE OPPOR TUNITY OF BEING H EARD TO THE ASSESSEE AND THE ASSESSEE SHALL ALSO CO - OPERATE BY SUBMITTING THE DOCUMENTS FOR DISPOSAL OF THE APPEAL. 7 . SINCE WE HAVE REMITTED THE MATTER TO THE FILE OF THE CIT (A) FOR DECIDING AFRESH, OTHER GROUNDS RAISED IN THE APPEAL ARE NOT HEARD. 4 ITA NO.239/CTK/2017 ASSESSMENT YEAR : 2012 - 2013 8 . IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON 31 / 01 /201 8 . SD/ - SD/ - ( N.S SAINI) ( PAVAN KUMAR GADALE) A CCOUNTANT MEMBER JUDICIALMEMBER CUTTACK; DATED 31 / 01 /201 8 B.K.PARIDA, SPS COPY OF THE ORDER FORWARDED TO : BY ORDER, SR.PRIVATE SECRETARY ITAT, CUTTACK 1. THE APPELLANT : S.K.MINERAL HANDLING PVT LTD., NEAR NEW BUS STAND, KALINGA ROAD, BARBIL, KEONJHAR 2. THE RESPONDENT. JCIT, RANGE - 1, CUTTACK 3. THE CIT(A) - CUTTACK 4. PR.CIT - CUTTACK 5. DR, ITAT, CUTTACK 6. GUARD FILE. //TRUE COPY//