M/s. Hospital Management Group Orthonova, New Delhi V. ITO, New Delhi

ITA 2784/DEL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 3056 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 6 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-11-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 16-05-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI A BENCH, NEW DELHI BEFORE SHRI B.P. JAIN, ACCOUNTANT MEMBER, AND SHRI SUDHANSHU SRIVASTAVA, JUDICIAL MEMBER ITA NO. 27 84 /DEL/201 6 [A.Y. 20 10 - 11 ] M/S HOSPITAL MANAGEMENT GROUP ORTHONOVA VS. THE I.T. O PLOT NO. 5 FC - 29, WARD 37(2) GEETANJALU, NEAR MALVIYA NAGAR NEW DELHI METRO STATION GATE NO. 1 NEW DELHI PAN : A ABCN 5053 E [APPELLANT] [RESPONDENT] DATE OF HEARIN G : 27 . 1 1 .2017 DATE OF PRONOUNCEMENT : 29 . 1 1 .2017 ASSESSEE BY : NONE REVENUE BY : SHRI ARUN KUMAR YADAV, SR. DR ORDER PER B.P. JAIN, ACCOUNTANT MEMBER, THIS APPEAL OF THE ASSESSEE ARISES F ROM THE ORDER OF THE LD. CIT(A) - 20 , N EW DELHI V IDE ORDER DATED 03 . 03 .201 6 FOR A.Y. 20 10 - 11 . 2. THE ASSESSEE HAS RAISED AS MANY AS 6 GROUND S OF APPEA L . MAINLY GROUND NOS. 3 AND 4 HAVE BEEN PRESSED , WHICH ARE REPROD UCED HEREIN BELOW: 2 3. THE ASSESSING OFFICER HAS ERRED IN PASSING THE IMPUGNED PENALTY ORDER WITHOUT ISSUING SHOW CAUSE NOTICE SPECIFICALLY PROPOSING TO MAKE ILLEGAL ADDITION NOR ANY EFFECTIVE OPPORTUNITY OF HEARING WAS PROVIDED TO THE ASSESSEE. THE LD. CIT(A) HAS ERRED IN UPHOLDING THE UNLAWFUL ACTION OF THE ASSESSING OFFICER AND HENCE THE IMPUGNED ORDER PASSED IN VIOLATION OF NATURAL JUSTICE IS LIABLE TO BE QUASHED. 4. THE ASSESSING OFFICER HAS ERRED IN PASSING THE IMPUGNED PENALTY ORDER WITH OUT ISSUING SHOW CAUSE NOTICE SPECIFICALLY PROPOSING TO MAKE ANY ADDITION NOR ANY EFFECTIVE OPPORTUNITY OF HEARING WAS PROVIDED TO THE ASSESSEE. THE LD. CIT(A) HAS ERRED IN UPHOLDING THE UNLAWFUL ACTION OF THE ASSESSING OFFICER AND HENCE THE IMPUGNED ORDE R PASSED IN VIOLATION OF NATURAL JUSTICE IS LIABLE TO BE QUASHED. 3. NONE APPEARED ON BEHALF OF THE ASSESSEE NOR ANY ADJOURNMENT WAS FILED. SO WE HEARD THE LD. DR AND PERUSED THE RELEVANT MATERIAL ON RECORD. 4. AT THE VERY OUTSET, IT WAS BROUGHT TO OUR NOTICE BY THE LD. DR THAT THE CASE HAS BEEN DECIDED EX PARTE BY THE LD. CIT(A) AND THEREFORE, IT WILL BE IN THE INTEREST OF JUSTICE TO SET ASIDE THE MATTER TO THE FILE OF THE LD. CIT(A). 5. WE HAVE CONSIDERED THE SUBMISSIONS OF THE LD. DR AND FI ND THAT IT IS A MATTER OF FACT THAT AS PER READING OF PARA 5.2 OF THE IMPUGNED ORDER, NONE APPEARED ON BEHALF OF THE APPELLANT DESPITE SERVICE OF NOTICE SENT TO IT THE ADDRESS AS PER RECORD. THEREFORE, THE LD. CIT(A) IN 3 PARA 5.3 HAS HELD THAT HE HAS NO OP TION BUT TO ADJUDICATE THE APPEAL ON MERIT. THEREFORE, HE DECIDED THE ISSUE EXPARTE QUA THE ASSESSEE BY ALLOWING SOME RELIEF. UNDER THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN THE INTEREST OF JUSTICE, WE ARE OF THE CONSIDERED OPINION THAT ONE MORE OPP ORTUNITY SHOULD BE GIVEN TO THE ASSESSEE WHO HAS RAISED A SPECIFIC GROUND OF APPEAL, THOUGH NONE WAS PRESENT BEFORE US TOO. WE, THEREFORE, SET ASIDE THE MATTER TO THE FILE OF THE LD. CIT(A) WHO WILL DECIDE THE CASE DE NOVO AFTER AFFORDING ADEQUATE OPPORTUN ITY OF BEING HEARD TO THE ASSESSEE. THUS, GROUNDS RAISED BY THE ASSESSEE ARE SET ASIDE TO THE FILE OF THE LD. CIT(A). ACCORDINGLY, GROUND NOS 1 AND 2 RAISED BY THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASS ESSEE IN ITA NO. 2784 /DEL/201 4 IS ALLOWED . THE ORDER IS PRO NOUNCED IN THE OPEN COURT ON 29 . 1 1 .2017. SD/ - SD/ - [SUDHANSHU SRIVASTAVA] [B.P. JAIN] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 29 TH NOVEMBER, 2017 VL/ 4 COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(A) ASST. REGISTRAR, 5. DR ITAT, NEW DELHI