PIZZERIA FAST FOOD RESTAURANTS (MADRAS) PVT. LTD., MUMBAI V. ACIT, CC - 5 (2), CHENNAI

ITA 2586/CHNY/2019

• Counselvise Citation: [2021] 109 COUNSELVISE.COM (IT) 8243 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 4 month(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-01-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: A
• Assessment Year: 2015-2016
• Appeal Filed On: 06-09-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: G. CHANDRABABU
• Keywords: Opportunity of being heard; Principle of natural justice; Set aside
• Section: 143(3)

Judgement Text

, , IN THE INCOME-TAX APPELLATE TRIBUNAL A BENCH, CHENNAI . , . , BEFORE SHRI DUVVURU RL REDDY, JUDICIAL MEMBER & SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ./ I.T.A. NO. 2586/CHNY/2019 / ASSESSMENT YEAR: 2015-16 PIZZERIA FAST FOODS RESTAURANTS (MADRAS) PVT. LTD., 7 TH FLOOR, A WING, PRISM TOWER, LINK ROAD, GOREGAON WEST, MUMBAI 400 063. [PAN:AAACP9302R] VS. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 5(2), CHENNAI. ( /APPELLANT) ( /RESPONDENT) / APPELLANT BY : NONE / RESPONDENT BY : SHRI G. CHANDRABABU, ADDL. CIT / DATE OF HEARING : 22.12.2020 /DATE OF PRONOUNCEMENT : 06.01.2021 / O R D E R PER DUVVURU RL REDDY, JUDICIAL MEMBER: THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPEALS) 3, CHENNAI, DATED 10.07.2019 RELEVANT TO THE ASSESSMENT YEAR 2015-16. BESIDES CHALLENGING THE CONFIRMATION OF DISALLOWANCE UNDER SECTION 36(1)(VA) OF THE INCOME TAX ACT, 1961 [ACT IN SHORT] THE ASSESSEE HAS ALSO CHALLENGED THE EX-PARTE ORDER PASSED BY THE LD. CIT(A) BY RAISING SPECIFIC GROUND. I.T.A. NO. 2586/CHNY/19 2 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE FILED ITS RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015-16 ON 29.09.2015 ADMITTING A LOSS OF .1,58,10,455/-. THE RETURN FILED BY THE ASSESSEE WAS SELECTED FOR SCRUTINY AND AGAINST STATUTORY NOTICES, THE ASSESSEE FILED VARIOUS DETAILS. ON PERUSAL OF THE DETAILS FURNISHED BY THE ASSESSEE AND CONSIDERING VARIOUS SUBMISSIONS MADE DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE ASSESSING OFFICER COMPLETED THE ASSESSMENT UNDER SECTION 143(3) OF THE ACT BY ASSESSING THE TOTAL LOSS OF THE ASSESSEE AT .4,44,736/- AFTER MAKING VARIOUS DISALLOWANCES/ADDITIONS. ON APPEAL, SINCE THE ASSESSEE COULD NOT RESPONDED/ REPRESENTED HIS CASE, THE LD. CIT(A) DISMISSED THE APPEAL ON MERITS. 3. ON BEING AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. NONE REPRESENTED ON BEHALF OF THE ASSESSEE WHEN THE APPEAL WAS TAKEN UP FOR HEARING THROUGH VIDEO CONFERENCING. HENCE WE PROCEED TO DECIDE THE APPEAL ON MERITS AFTER HEARING THE LD. DR. 4. WE HAVE HEARD THE LD. DR AND GONE THROUGH THE ORDERS OF AUTHORITIES BELOW. ON PERUSAL OF THE APPELLATE ORDER, THE LD. CIT(A) HAS STATED THAT THERE WAS NO RESPONSE TO THE NOTICES ISSUED ON VARIOUS DATES, BUT, THERE WAS NO MENTION ABOUT SERVICES OF NOTICES EXCEPT STATING THAT THE NOTICE DATED 23.04.2019 HAS BEEN RECEIVED BY THE AUTHORIZED REPRESENTATIVE M/S. GANESH I.T.A. NO. 2586/CHNY/19 3 VENKAT & CO, THE CHARTERED ACCOUNTANTS. IN THE GROUNDS OF APPEAL, IT WAS THE SUBMISSION OF THE ASSESSEE THAT CONSIDERING THE MERGER OF THE COMPANY PIZZERIA FAST FOODS RESTAURANTS MADRAS PVT. LTD., CHENNAI WITH SAPPHIRE FOODS INDIA PVT. LTD., MUMBAI, THE COMPANY HAS FAILED TO RECEIVE THE NOTICES FOR HEARING AND DUE TO WHICH NO SUBMISSIONS WERE MADE TO THE LEARNED CIT(A). CONSIDERING THE ABOVE PLEA TAKEN BY THE ASSESSEE, WE ARE OF THE CONSIDERED OPINION THAT THE ASSESSEE SHOULD BE GIVEN REASONABLE OPPORTUNITY OF BEING HEARD TO REPRESENT ITS CASE BEFORE THE LD. CIT(A) TO MEET THE ENDS OF NATURAL JUSTICE. ACCORDINGLY, WE SET ASIDE THE APPELLATE ORDER AND THE LD. CIT(A) IS DIRECTED TO ADJUDICATE THE ISSUE RAISED IN THE APPEAL OF THE ASSESSEE AFTER AFFORDING AN OPPORTUNITY OF BEING HEARD. 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED ON THE 06 TH JANUARY, 2021 IN CHENNAI. SD/- SD/- (G. MANJUNATHA) ACCOUNTANT MEMBER (DUVVURU RL REDDY) JUDICIAL MEMBER CHENNAI, DATED, 06.01.2021 VM/- /COPY TO: 1. /APPELLANT, 2. / RESPONDENT, 3. ( )/CIT(A), 4. /CIT, 5. /DR & 6. /GF.