M/s Vigilance Security and Allied Services Private Limited , Bangalore V. Income Tax Officer Ward-12(2), Bangalore

ITA 2434/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3330 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 6 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 05-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 02-03-2020
• Assessment Year: 2007-2008
• Appeal Filed On: 24-08-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R PREMI J BENGALURU
• Keywords: Principle of natural justice; Set aside
• Section: 143(3); 40(a)(ia); 2

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI N.V. VASUDEVAN, VICE PRESIDENT AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER IT A NO S . 2 434 /BANG/2018 ASSESSMENT YEAR: 20 07 - 08 M/S VIGILANCE SECURITY AND ALLIED SERVICES PVT. LTD., NO.154, 4 TH MAIN, DEFENCE COLONY, INDIRANAGAR, BENGALURU - 560038 PAN: AABCV 8580A VS. THE INCOME TAX OFFICER, WARD -12(2) BENGALURU. APPELLANT RESPONDENT APPELLANT BY : NONE RESPONDENT BY : S MT . R. PREMI, J CIT(DR)(ITAT), BENGALURU . D ATE OF HEARING : 02.03 .2020 DATE OF PRONOUNCEMENT : 05 .0 3 .2020 O R D E R PER PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER THE CAPTIONED APPEAL HAS BEEN FILED AT THE INSTA NCE OF THE ASSESSEE AGAINST THE ORDER OF CIT(APPEALS), MYSORE DATED 29, 12,2017 ARISING FROM ASSESSMENT ORDER PASSED BY ASSESSING OFFICER (AO) U /S. 143(3) OF THE INCOME-TAX ACT, 1961 [THE ACT] DATED 29.10.2009 REL ATING TO ASSESSMENT YEAR 2007-08. 2. THE ASSESSEE IN THE CAPTIONED APPEAL HAS RAISED SEVERAL GROUNDS ASSAILING THE ORDER OF CIT(APPEALS) FOR DISMISSAL O F THE APPEAL OF ASSESSEE ITA NO. 2434/BANG/2018 PAGE 2 OF 3 EX PARTE. THUS, ONE OF THE SUBSTANTIVE GROUNDS RAISED BY ASS ESSEE SEEKS TO IMPUGNE THE ORDER OF CIT(APPEALS) TOWARDS ALLEGE D VIOLATION OF PRINCIPLES OF NATURAL JUSTICE. 3. WHEN THE MATTER WAS CALLED FOR HEARING, NONE APP EARED FOR THE ASSESSEE. ACCORDINGLY, THE MATTER IS PROCEEDED EX PARTE . 4. IT IS NOTICED THAT THE ASSESSEE DULY ATTENDED BE FORE THE AO. CERTAIN DISALLOWANCES WERE MADE AMOUNTING TO RS.6,69,733 BY INVOKING SECTION 40(A)(IA) OF THE INCOME-TAX ACT, 1961 [THE ACT]. T HE DISALLOWANCE WERE CHALLENGED BEFORE THE CIT(APPEALS). HOWEVER, THE C IT(APPEALS) HAS PASSED THE ORDER EX PARTE. 5. BEFORE THE TRIBUNAL, THE ASSESSEE INTER ALIA MENTIONED BY WAY OF ITS SUBMISSIONS THAT THE REGISTERED OFFICE OF THE ASSES SEE HAS NOT CHANGED AND THEREFORE THE OBSERVATIONS OF THE CIT(APPEALS) THAT THE NOTICES HAVE REMAINED UNSERVED ON THE GROUND THAT ADDRESSEE HAS LEFT IS INCORRECT. THE ASSESSEE HAS BEEN PREVENTED BY SUFFICIENT CAUSE FOR NON-APPEARANCE BEFORE THE CIT(APPEALS) IN THE ABSENCE OF PROPER SE RVICE OF NOTICE. 6. WE FIND MERIT IN THE ASSERTIONS MADE ON BEHALF O F ASSESSEE AS IN THE GROUNDS OF APPEAL. THE VIOLATION OF PRINCIPLES OF NATURAL JUSTICE IS EVIDENT IN THE PRESENT CASE WHICH HAS REMAINED UNREBUTTED FROM THE REVENUE. THE ADJUDICATION OF ISSUES BY THE CIT(APPEALS) IN LIMINE THUS CANNOT BE COUNTENANCED. WE, THUS, SET ASIDE THE ORDER OF CIT (APPEALS) AND REMAND ALL THE ISSUES PLACED BEFORE THE TRIBUNAL FOR DE NOVO CONSIDERATION OF THE CIT(APPEALS) AFTER GRANTING PROPER OPPORTUNITY OF B EING HEARD TO THE ASSESSEE. IT SHALL BE OPEN TO THE ASSESSEE TO ADDU CE ALL EVIDENCES BEFORE THE CIT(APPEALS) IN ACCORDANCE WITH LAW AS MAY BE NECESSARY AND EXPEDIENT TO SUPPORT ITS CASE. ITA NO. 2434/BANG/2018 PAGE 3 OF 3 7. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THIS 5 TH DAY OF MARCH, 2020. SD/- ( N V VASUDEVAN ) SD/- ( P RAD I P K UMAR K EDIA ) VICE PRESIDENT A CCOUNTANT MEMBER BANGALORE, DATED, THE 5 TH MARCH, 2020. / DESAI S MURTHY / COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR ITAT, BANGALORE