Nitin Thomas Joseph , Bangalore V. The Income Tax officer Ward-1(3)(2), Bangalore

ITA 2821/BANG/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 2868 (ITAT-BANGALORE)
• Duration Of Justice: 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 30-10-2018
• Assessment Year: 2014-2015
• Appeal Filed On: 11-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: SURENDRA PAREEK
• Keywords: Opportunity of being heard; Principle of natural justice; Revised return
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL SMC BANGALORE BENCH B BEFORE S HRI JASON P BOAZ , ACCOUNTANT MEMBER I.T . A. NO. 2821 /BANG/20 18 (ASSESSMENT YEAR : 20 14 - 15 ) SHRI NITIN THOMAS JOSEPH, NO.71, 359/E, DAFFODILS, 2 ND FLOOR, 8 TH CROSS, 10 TH MAIN, MARUTINAGAR, MALLESHPALYA, BANGALORE - 560 075 . . APPELLANT. VS. INCOME TAX OFFICER, WARD 1(3)(2), BANGALORE. .. RESPONDENT. APPELLANT BY : SHRI SURENDRA PAREEK, C.A. R E SPONDENT BY : SHRI SATYA SAI RATH, JCIT (D.R) DATE OF H EARING : 30.10.2018. DATE OF P RONOUNCEMENT : 02 .11 .201 8 . O R D E R PER SHRI JASON P BOAZ, A .M . : THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE EX - PARTE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 10 , BANGALORE DT.1.8.2018 FOR THE ASSESSMENT YEAR 20 14 - 15. 2 IT A NO. 2821 /BANG/201 8 2. BRIEFLY STATED, THE FACT S OF THE CASE, RELEVANT FOR DISPOSAL OF THIS APPEAL, ARE AS UNDER : - 2.1 THE ASSESSEE FILED HIS RETURN FOR ASSESSMENT YEAR 2014 - 15 ON 22.7.2014 DECLARING INCOME OF RS.48,73,740 FROM SALARY. THE ASSESSEE FILED A REVISED RETURN ON 16.12.2014 DECLARIN G INCOME OF RS.48,69,740. THE CASE WAS SELECTED FOR SCRUTINY AND THE ASSESSMENT WAS CONCLUDED UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT 'THE ACT') VIDE ORDER DT.21.12.2016, WHEREIN THE ASSESSEE'S INCOME WAS DETERMINED AT RS.80,32,410 IN V IEW OF AN ADDITION OF RS.31,58,670. ON APPEAL, THE CIT (APPEALS) - 10, BANGALORE VIDE THE IMPUGNED ORDER DT.28.6.2018 DISMISSED THE APPEAL EX - PARTE FOR NON - PROSECUTION / NON - APPEARANCE BY THE ASSESSEE. 3. AGGRIEVED BY THE EX - PARTE ORDER OF CIT (APPEA LS) - 10, BANGALORE DT.18.01.2018 FOR ASSESSMENT YEAR 2014 - 15, THE ASSESSEE HAS FILED THIS APPEAL BEFORE THE TRIBUNAL RAISING THE FOLLOWING GROUNDS : - 3 IT A NO. 2821 /BANG/201 8 4.0 GROUND NO.1. 4.1 I HAVE HEARD THE RIVAL CONTENTIONS, PERUSED AND CAREFULLY CONSIDERED THE MA TERIAL ON RECORD IN RESPECT OF THE ASSESSEE'S CONTENTIONS PUT FORTH IN GROUND NO.1 (SUPRA) THAT THE CIT (APPEALS) ERRED IN PASSING THE ORDER WITHOUT AFFORDING THE ASSESSEE ANY OPPORTUNITY OF BEING HEARD OR TO SUBMIT HIS EXPLANATION S / DOCUMENTARY EVIDENCES. ACCORDING TO THE LEARNED AUTHORISED REPRESENTATIVE, THE ASSESSEE HAD FILED THE APPEAL FOR ASSESSMENT YEAR 2014 - 15 BEFORE THE CIT (APPEALS) - 5, 4 IT A NO. 2821 /BANG/201 8 BANGALORE AND WAS SURPRISED TO RECEIVE THE IMPUGNED EX - PARTE ORDER PASSED BY THE CIT (APPEALS) - 10. IT IS SUBMIT TED THAT NEITHER WAS A COPY OF THE ORDER PASSED BY THE PR. CCIT, KARNATAKA AND GOA REGION, REFERRED TO BY THE CIT (APPEALS) AT PARA 1 OF THE IMPUGNED ORDER, TRANSFERRING THE APPEAL FROM CIT (APPEALS) - 5, BANGALORE TO CIT (APPEALS) - 10, BANGALORE WAS SERVED O N THE ASSESSEE NOR WERE THE NOTICES FOR HEARING REFERRED TO IN PARA 4 OF THE IMPUGNED ORDER SERVED ON THE ASSESSEE. THEREFORE, IT IS SUBMITTED THAT THE IMPUGNED ORDER PASSED EX - PARTE, IS IN VIOLATION OF THE PRINCIPLES OF NATURAL JUSTICE AND IS LIABLE TO BE QUASHED AS IT IS PASSED WITHOUT AFFORDING THE ASSESSEE ADEQUATE OPPORTUNITY OF BEING HEARD. 4.2 FROM A CAREFUL CONSIDERATION OF THE SUBMISSIONS OF THE LEARNED AUTHORISED REPRESENTATIVE AND THE MATERIAL ON RECORD, I AM OF THE CONSIDERED VIEW TH AT THERE IS MERIT IN THE ARGUMENTS PUT FORTH BY THE LEARNED AUTHORISED REPRESENTATIVE. THERE APPEARS TO BE A LOT OF CONFUSION IN THE CASE ON HAND LEADING TO THE DISMISSAL OF THE ASSESSEE'S APPEAL, EX - PARTE, BY THE LEARNED CIT (APPEALS). AS CONTENDED BY T HE ASSESSEE AND ON A PERUSAL OF THE RECORD, REVENUE HAS NOT BEEN ABLE TO PLACE ON RECORD ANY PROOF THAT THE ORDER OF THE PR. CCIT, KARNATAKA 5 IT A NO. 2821 /BANG/201 8 TRANSFERRING THE ASSESSEE S APPEAL FROM CIT (APPEALS) - 5, BANGALORE TO CIT (APPEALS) 10 , BANGALORE WAS SERVED ON T HE ASSESSEE. BE THAT AS IT MAY, THE IMPUGNED ORDER HAS BEEN PASSED EX - PARTE WITHOUT AFFORDING THE ASSESSEE ANY OPPORTUNITY OF BEING HEARD AND WAS PASSED BEREFT OF ANY SUBMISSIONS O R DOCUMENTARY EVIDENCE THAT THE ASSESSEE WOULD HAVE FILED TO BUTTRESS THE CLAIMS MADE IN THE GROUNDS OF APPEAL ON THE MERIT S OF THE ADDITION OF RS.31,58,670 MADE BY THE ASSESSING OFFICER AS UNDISCLOSED SALARY. IN THESE CIRCUMSTANCES, BOTH THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR REVENUE AND LEARNED AUTHORISED REPRESENTATIVE O F THE ASSESSEE WERE OF THE VIEW THAT THE IMPUGNED EX - PARTE ORDER OF THE CIT (APPEALS) BE SET ASIDE AND THE MATTER RESTORED TO THE FILE OF THE CIT (APPEALS) FOR ADJUDICATION ON MERITS OF THE ISSUES RAISED IN THE GROUNDS OF APPEAL BEFORE HIM. IN THE FACTUA L MATRIX OF THE CASE, AS DISCUSSED ABOVE, I AM OF THE CONSIDERED VIEW THAT THE INTEREST OF SUBSTANTIAL JUSTICE WOULD BE SERVED BY SETTING ASIDE THE IMPUGNED EX - PARTE ORDER OF THE CIT (APPEALS) DT.1.8.2018 FOR ASSESSMENT YEAR 2014 - 15 AND DO SO AND CONSEQUENTLY RE STORE THE MATTER TO THE FILE OF THE CIT (APPEALS) FOR ADJUDICATION OF THE ISSUES IN THE GROUNDS RAISED IN THE APPEAL BEFORE HIM. 6 IT A NO. 2821 /BANG/201 8 NEEDLESS TO ADD, THE ASSESSEE SHALL BE AFFORDED ADEQUATE OPPORTUNITY OF BEING HEARD AND TO FILE DETAILS / SUBMISSIONS / DOCUM ENTARY EVIDENCES REQUIRED WHICH SHALL BE DULY CONSIDERED BEFORE DECIDING THE ISSUES RAISED ON MERITS BY WAY OF A REASONED AND SPEAKING ORDER. THE CIT (APPEALS) IS ACCORDINGLY DIRECTED. 5. IN VIEW OF THE IMPUGNED ORDER OF CIT (APPEALS) DT.1.8.2018 B EING SET ASIDE FOR DE NOVO CONSIDERATION / ADJUDICATION, THE OTHER GROUNDS OF APPEAL RAISED ON MERITS (SUPRA) ARE RENDERED ACADEMIC AND DO NOT REQUIRE ADJUDICATION AT THIS STAGE. 6. IN THE RESULT, THE ASSESSEE'S APPEAL FOR ASSESSMENT YEAR 2014 - 15 I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON THE 2ND DAY OF NOV., 201 8 . SD/ - ( JASON P BOAZ ) ACCOUNTANT MEMBER BANGALORE, DT. 02 .11.2018. *REDDY GP 7 IT A NO. 2821 /BANG/201 8 COPY TO : 1 A PPELLANT 4 CIT(A) 2 RESPONDENT 5 DR. ITAT, BANGALORE 3 CIT 6 GUARD FILE CERTIFIED TRUE COPY ASST. REGISTRAR INCOME TAX APPELLATE TRIBUNAL BANGALORE.