Jainco Projects India Ltd., , Kolkata V. ITO, Ward - 6(2) , Kolkata

ITA 2697/KOL/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 6722 (ITAT-KOLKATA)
• Duration Of Justice: 4 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 06-05-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 31-12-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: AMITAVA BHATTACHARYA
• Assessee Lawyers: AKKAL DUDHWALA
• Keywords: Opportunity of being heard; Principle of natural justice; Rule 8D; Set aside
• Section: 143(3); 14A

Judgement Text

I.T.A. NO. 2697/KOL/2018 (ASSESSMENT YEAR: 2014-2015) M/S. JAIN CO PROJECTS INDIA LIMITED 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA C(SMC) BENCH, KOLKATA BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT (KZ) I.T.A. NO. 2697/KOL/2018 ASSESSMENT YEAR: 2014-2015 M/S. JAINCO PROJECTS INDIA LIMITED,................ ...............................APPELLANT 2, CLIVE GHAT STREET, 4 TH FLOOR, DALHOUSIE, KOLKATA-700 001 [PAN: AAACJ 7110 P] -VS.- INCOME TAX OFFICER,................................ ..............................RESPONDENT WARD-6(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 APPEARANCES BY: SHRI AKKAL DUDHWALA, A.R., FOR THE APPELLANT SHRI AMITAVA BHATTACHARYA, ADDL. CIT, SR. D.R., FOR THE RESPONDENT DATE OF CONCLUDING THE HEARING : MAY 06, 2019 DATE OF PRONOUNCING THE ORDER : MAY 06, 2019 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT (KOLKATA ZONE) :- THIS APPEAL FILED BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKATA DAT ED 04.10.2018 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF MANUFACTURING OF READY MIX CONCRETE , ETC. THE RETURN OF INCOME OF THE YEAR UNDER CONSIDERATION WAS FILED BY IT ON 29.11.2014 DECLARING TOTAL INCOME OF RS.11,39,208/-. IN THE AS SESSMENT COMPLETED UNDER SECTION 143(3) VIDE AN ORDER DATED 28.12.2016 , THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICE R AT RS.13,86,516/- I.T.A. NO. 2697/KOL/2018 (ASSESSMENT YEAR: 2014-2015) M/S. JAIN CO PROJECTS INDIA LIMITED 2 AFTER MAKING AN ADDITION OF RS.2,47,308/- ON ACCOUN T OF DISALLOWANCE UNDER SECTION 14A READ WITH RULE 8D. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 143(3), AN APPEAL WAS PREFERRED BY THE ASSESSEE BEF ORE THE LD. CIT(APPEALS) CHALLENGING THE DISALLOWANCE MADE BY T HE ASSESSING OFFICER UNDER SECTION 14A READ WITH RULE 8D AND SINCE THERE WAS NO SATISFACTORY COMPLIANCE TO THE NOTICES ISSUED BY HIM FIXING THE APPEAL FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DISMISSED T HE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE HIS APPELLATE ORD ER DATED 04.10.2018 PASSED EX-PARTE. AGGRIEVED BY THE ORDER OF THE LD. CIT(APPEALS), THE ASSESSEE HAS PREFERRED THIS APPEAL BEFORE THE TRIBU NAL. 4. I HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AND ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT O F THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THIS APPEAL CHALLENGING T HE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE, THE LD. CO UNSEL FOR THE ASSESSEE HAS SUBMITTED THAT THE APPEAL OF THE ASSESSEE WAS I NITIALLY FIXED FOR HEARING BY THE LD. CIT(APPEALS) ON 12.09.2018. HE H AS SUBMITTED THAT THE ASSESSEE SOUGHT ADJOURNMENT ON THE SAID DATE AND AC CORDINGLY THE HEARING WAS ADJOURNED BY THE LD. CIT(APPEALS) TO 03 .10.2018. HE HAS CONTENDED THAT THE ASSESSEE, HOWEVER, COULD NOT PRE PARE AND ARGUE HIS CASE BEFORE THE LD. CIT(APPEALS) IN A SHORT PERIOD OF TIME AND WITHOUT GIVING ANY FURTHER OPPORTUNITY TO THE ASSESSEE, THE LD. CIT(APPEALS) PROCEEDED TO DISMISS THE APPEAL OF THE ASSESSEE FOR NON-PROSECUTION VIDE HIS IMPUGNED ORDER PASSED EX-PARTE. HE HAS CONTENDE D THAT THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) THUS IS IN A C LEAR VIOLATION OF PRINCIPLE OF NATURAL JUSTICE AND EVEN THE LD. D.R. HAS NOT BEEN ABLE TO REBUT OR CONTROVERT THIS POSITION, WHICH IS CLEARLY EVIDENT FROM THE RECORD. I, THEREFORE, SET ASIDE THE IMPUGNED ORDER PASSED BY THE LD. CIT(APPEALS) EX-PARTE AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEAL OF THE ASSESSEE AFRESH AFTER GIVING THE ASSESSEE PROPER AND SUFFICIENT OPPORTUNITY OF BEING HEARD. I.T.A. NO. 2697/KOL/2018 (ASSESSMENT YEAR: 2014-2015) M/S. JAIN CO PROJECTS INDIA LIMITED 3 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON MAY 06, 2019. SD/- (P.M. JAGTAP) VICE-PRESIDENT (KZ ) KOLKATA, THE 6 TH DAY OF MAY, 2019 COPIES TO : (1) M/S. JAINCO PROJECTS INDIA LIMITED, 2, CLIVE GHAT STREET, 4 TH FLOOR, DALHOUSIE, KOLKATA-700 001 (2) INCOME TAX OFFICER, WARD-6(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700 069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-2, KOLKAT A, (4) COMMISSIONER OF INCOME TAX- , (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.