Vinyas Innovative Technologies Pvt Ltd , Mysore V. Assistant Commissioner of Income Tax Circle, Bangalore

ITA 2426/BANG/2018

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 2025 (ITAT-BANGALORE)
• Duration Of Justice: 2 year(s) 6 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-03-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 09-03-2021
• Assessment Year: 2015-2016
• Appeal Filed On: 23-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: PRABHATH P. BHAT
• Keywords: Opportunity of being heard; Set aside
• Section: 143(1)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE E INCOME TAX APPELLATE TRIBUNAL BEFORE SHRI N. V. VASUDEVAN, VICE PRESIDENT AND SHRI B. R. BASKARAN , ACCOUNTANT MEMBER ITA NO. 2 426 /BANG/20 1 8 ASSESSMENT YEAR : 2015-16 M/S. VINYAS INNOVATIVE TECHNOLOGIES PVT. LTD., 19, SY NO.273P KIADB PLOT, 3 RD PHASE, KOORGALLI INDUSTRIAL AREA, MYSURU 570 018. PAN : AABCV 3713 D VS. ACIT, BENGALURU. APPELLANT RESPONDENT ASSESSEE BY : SHRI. PRABHATH P. BHAT, CA REVENUE BY : SMT. R. PREMI, JCIT(DR)(ITAT), BENGALURU DATE OF HEARING : 09.03.2021 DATE OF PRONOUNCEMENT : 10 .03.2021 O R D E R PER N. V. VASUDEVAN, VICE PRESIDENT: THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 22.06.2018 OF CIT(A), MYSURU, RELATING TO ASSESSMENT YEAR 2015-16. 2. THE ASSESSEE IS A COMPANY. FOR ASSESSMENT YEAR 2015-16, THE AO PASSED AN (INTIMATION)ORDER UNDER SECTION 143(1) OF THE ACT IN WHICH HE HELD THAT THE ASSESSEE WAS LIABLE TO PAY DIVIDEND DISTRIBUTION OF TAX AT RS.3,81,338/-. 3. AGGRIEVED BY THE AFORESAID INTIMATION PASSED UNDER SECTION 143(1) OF THE ACT, THE ASSESSEE PREFERRED APPEAL BEFORE THE CIT(A). IT APPEARS THAT THE NOTICE OF HEARING BEFORE CIT(A) WAS SERVED ON THE ASSESSEE BUT NONE APPEARED ON BEHALF OF THE ASSESSEE. THE CIT(A) ALSO NOTICED THAT THERE WAS ITA NO.2426/BANG/2018 PAGE 2 OF 3 NO NOTICE OF DEMAND ISSUED UNDER SECTION 156 OF THE ACT FILED ALONG WITH THE APPEAL AND DESPITE THE CIT(A)S LETTER DATED 19.03.2018 REQUIRING THE ASSESSEE TO FURNISH ORIGINAL NOTICE OF DEMAND UNDER SECTION 156 OF THE ACT, THERE WAS NO RESPONSE FROM THE ASSESSEE. THE CIT(A), THEREFORE, CONSIDERED THE APPEAL FILED BY THE ASSESSEE AS DEFECTIVE AND DISMISSED THE SAME AS UNADMITTED. THE ASSESSEE IS IN APPEAL AGAINST THE AFORESAID ORDER OF THE CIT(A). 4. WE HAVE HEARD THE SUBMISSIONS OF THE RIVAL PARTIES. IN OUR VIEW, THE ORDER OF THE CIT(A) SHOULD BE SET ASIDE AND THE ISSUE WITH REGARD TO LIABILITY OF THE ASSESSEE ON ACCOUNT OF DIVIDEND DISTRIBUTION OF TAX SHOULD BE DECIDED BY THE CIT(A) AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. THE CIT(A) IS NOT RIGHT IN INSISTING ON A NOTICE OF DEMAND UNDER SECTION 156 OF THE ACT TO BE FILED ALONG WITH THE APPEAL. AN INTIMATION UNDER SECTION 143(1) OF THE ACT IS ITSELF A NOTICE OF DEMAND IN TERMS OF THE PROVISO TO SEC.156 OF THE ACT. THE CIT(A) WAS THEREFORE NOT JUSTIFIED IN DISMISSING THE APPEAL AS UNADMITTED. WE, THEREFORE, SET ASIDE THE ORDER OF CIT(A) AND DIRECT THE CIT(A) TO TREAT THE APPEAL OF THE ASSESSEE AS PROPERLY INSTITUTED AND DECIDE THE SAME ON MERITS, AFTER AFFORDING OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 5. IN THE RESULT, APPEAL OF THE ASSESSEE IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. SD/- SD/- BANGALORE, DATED: 10.03.2021. /NS/* ( B. R. BASKARAN ) (N. V. VASUDEVAN) ACCOUNTANT MEMBER VICE PRESIDENT ITA NO.2426/BANG/2018 PAGE 3 OF 3 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.