The Haryana State Co-operative Apex Bank Ltd., Chandigarh V. ACIT Panchkula Circle , Panchkula

ITA 246/CHANDI/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 7141 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-09-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 01-09-2021
• Assessment Year: 1997-1998
• Appeal Filed On: 13-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MEENAKSHI VOHRA CIT
• Assessee Lawyers: SAHIL CHADDA
• Keywords: Opportunity of being heard; TDS; Set aside; Audi alteram partem
• Section: 244A; 154

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BE NCH A, CHANDIGARH (VIRTUAL COURT) .., !' .. , # $% BEFORE: SHRI. N.K.SAINI, VP & SHRI , R.L. NEGI, JM ITA NO. 246/CHD/2020 ASSESSMENT YEAR : 1997-98 THE HARYANA STATE COOPERATIVE APEX BANK LTD. SCO 78-80, BANK SQUARE SECTOR-17B CHANDIGARH THE ACIT PANCHKULA CIRCLE, PANCHKULA PAN NO: AAAJH0029E APPELLANT RESPONDENT !' ASSESSEE BY : SHRI SAHIL CHADDA, ADVOCATE #!' REVENUE BY : SMT. MEENAKSHI VOHRA, ADDL. CIT $ %! & DATE OF HEARING : 01/09/2021 '()*! & DATE OF PRONOUNCEMENT : 01/09/2021 $&/ ORDER PER N.K. SAINI, VICE PRESIDENT THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DT . 30/12/2019 OF THE LD. CIT(A), PANCHKULA. 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. AT THE LD. ASSESSING OFFICER HAS ERRED IN NOT GIVIN G EFFECT TO GRANT ADDITIONAL INTEREST U/S 244A(1A) OF THE ACT FOR UNDUE DELAY IN PROCESSI NG REFUND WHICH IS BAD IN LAW. 2. THAT THE LD. CIT(A) ERRED IN DISMISSING ASSESSEES CLAIM FOR ADDITIONAL INTEREST FOR WHICH ASSESSEE WAS ELIGIBLE ON ACCOUNT OF GROSS AND UNREASONABLE DELAY IN GRANTING THE REFUND BY THE LD. ASSESSING OFFICER. 3. THAT THE APPELLANT CRAVES THE RIGHT TO AMEND, MODIF Y AND / OR ALTER GROUNDS AND / OR TO ADDUCE AND RELY UPON SUCH FURTHER EVIDENCES A ND / OR DOCUMENTS AS MAY BE REQUIRED BEFORE AND DURING THE COURSE OF PROCEEDING S. 3. FACTS OF THE CASE IN BRIEF ARE THAT THE A.O. WHILE PA SSING THE ORDER UNDER SECTION 154 OF THE INCOME TAX ACT, 1961 (HEREINAFTER REFERRE D TO AS ACT) NOTICED THAT AT THE TIME OF GIVING EFFECT TO THE ORDER OF THE ITAT, CHANDIGA RH BENCH, CREDIT OF TDS 2 AMOUNTING TO RS. 1,77,87,104/- AND COLLECTION TOWARDS REFUND ADJUSTMENT FROM A.Y. 1995-96 AND 1996-97 AMOUNTING TO RS. 3,23,99,990/- TOT ALING TO RS. 5,01,87,094/- WAS NOT GIVEN DUE TO WANT OF VERIFICATION OF TDS WHICH NOW HAD BE EN RECEIVED FROM THE DEDUCTOR AND PLACED ON RECORD. HE ACCORDINGLY ALLOWED THE REFUND OF RS. 12,14,17,380/- WHICH INCLUDED INTEREST OF RS. 7,12,30, 281/- UNDER SECTION 244A OF THE ACT. 3.1 THE ASSESSEE WAS NOT SATISFIED FOR THE CALCULATIO N OF THE INTEREST AND CHALLENGED BEFORE THE LD. CIT(A), THE CALCULATION MADE BY THE A.O . FOR INTEREST ON THE REFUND MAINLY ON THIS BASIS THAT THE INTEREST WAS NOT EFFECTED ON THE REFUND OF RS. 62,48,895/- FOR THE A.Y. 1995-96 AND RS. 64,47,825/- FOR THE A.Y. 19 97-98. HOWEVER THE LD. CIT(A) DISMISSED THE APPEAL OF THE ASSESSEE EXPARTE IN LIMINE THE RELEVANT FINDINGS ARE GIVEN IN PARA 6 TO 6.2 OF THE IMPUGNED ORDER WHICH READ AS UNDE R: 6. GROUND OF APPEAL NO. 1: THE APPELLANT HAS CHALLE NGED THAT THE A.O. HAS ERRED IN NOT EFFECTING THE INTEREST ON REFUND U/S 244A(1A) OF TH E ACT OF RS. 62,48,895/- FOR THE A.Y. 1995- 96 AND RS. 64,47,825/- FOR THE A.Y. 1997-98. 6.1 PER CONTRA: NOBODY ATTENDED THE APPEAL PROCEEDI NGS DESPITE OF BEST EFFORTS MADE BY THIS OFFICE TO REACH THE APPELLANT. 6.2 HELD: I HAVE PERUSED THE ASSESSMENT ORDER AND C ONSIDERED THE FACTS OF THE CASE. DESPITE OF MAKING BEST EFFORTS TO SERVE THE NOTICE ON THE GIVEN CORRESPONDENCE ADDRESS IN FORM NO. 35 AND EMAIL ADDRESS, APPELLANT COULD NOT BE REACHED AS DISCUSSED AT PARA 4 SUPRA. MOREOVER, SH. DINESH SINGH, BRANCH MANAGER H AS ALSO BEEN INFORMED TELEPHONICALLY BY THIS OFFICE BUT OPPORTUNITY TO REPRESENT THE APP EAL WAS NOT AVAILED FOR THE REASON BEST KNOWN TO THE APPELLANT. IT SEEMS THAT APPELLANT DOE S NOT WANT TO PURSUE THE APPEAL. IN THE ABSENCE OF ANY WRITTEN SUBMISSION, I AM COMPLET ED TO SUSTAIN THE ADDITIONS. THE GROUND OF APPEAL NO.1 IS DISMISSED. 4. NOW THE ASSESSEE IS IN APPEAL. 5. LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE LD. CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEAL OF THE ASSESSEE IN LIMINE WITHOUT DECIDING THE ISSUE RAISED BEFORE HIM ON MERIT AND THAT NO OPPORTUNITY OF BEING HEARD WAS P ROVIDED TO THE ASSESSEE. 6. IN HER RIVAL SUBMISSIONS THE LD. DR STRONGLY SUPPORTE D THE IMPUGNED ORDER PASSED BY THE LD. CIT(A) AND FURTHER SUBMITTED THAT IN SPITE O F VARIOUS OPPORTUNITIES GIVEN, THE ASSESSEE DID NOT AVAIL THE OPPORTUNITY OF BEING HEARD, THEREFORE, THE LD. CIT(A) RIGHTLY DECIDED THE APPEAL OF THE ASSESSEE EXAPRTE. 3 7. WE HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIE S AND PERUSED THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS AN ADMITTED FACT THAT THE LD. CIT(A) DECIDED THE APPEAL OF THE ASSESSEE EXPARTE AND NO EVIDENCE WAS BROUGHT ON RECORD TO SUBSTANTIATE THAT THE NOTICE FOR HEARING WAS S ERVED UPON THE ASSESSEE. HE SIMPLY STATED THAT SHRI DINESH SINGH, BRANCH MANAGER HAD BE EN INFORMED TELEPHONICALLY BY HIS OFFICE BUT THE OPPORTUNITY TO REPRESENT THE APPE AL WAS NOT AVAILED. HOWEVER IT IS NOT CLEAR AS TO WHETHER THE SAID PERSON WAS AUTHORIZED T O REPRESENT THE CASE. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED, UNHEARD AS PER T HE MAXIM, AUDI ALTERAM PARTEM . 8. WE THEREFORE BY KEEPING IN VIEW THE PRINCIPLES OF NA TURAL JUSTICE, DEEM IT APPROPRIATE TO SET ASIDE THIS CASE BACK TO THE FILE OF LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONA BLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FO R STATISTICAL PURPOSES. (ORDER PRONOUNCED IN THE OPEN COURT ON 01/09/2021 ) SD/- SD/- .. .., (R.L. NEGI ) ( N.K. SAIN I) # $%/ JUDICIAL MEMBER / VICE PRESIDENT AG DATE: 01/09/2021 (+! ,-.- COPY OF THE ORDER FORWARDED TO : 1. THE APPELLANT 2. THE RESPONDENT 3. $ / CIT 4. $ / 01 THE CIT(A) 5. -2 45&456789 DR, ITAT, CHANDIGARH 6. 8:% GUARD FILE (+ $ BY ORDER, ; # ASSISTANT REGISTRAR