Xtreme Sports Organisation, Noida V. DCIT, Circle- 3, Noida

ITA 2917/DEL/2018

• Counselvise Citation: [2018] 123 COUNSELVISE.COM (IT) 0706 (ITAT-DELHI)
• Duration Of Justice: 5 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2013-2014
• Appeal Filed On: 25-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDRA MEENA
• Assessee Lawyers: J P CHAWLA
• Keywords: Opportunity of being heard; Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH SMC , NEW DELHI BEFORE SH. N. K. SAINI, ACCOUNTANT MEMBER ITA NO. 2917/DEL/2018 : ASSTT. YEAR : 2013 - 14 XTREME SPORTS ORGANIZATION, D - 48, SECTOR - 2, NOIDA, UTT AR PRADESH - 201301 VS DCIT, CIRCLE - 3, NOIDA (APPELLANT) (RESPONDENT) PAN NO. A AAFX1226D ASSESSEE BY : SH. J. P. CHAWLA, CA REVENUE BY : SH. SURENDRA MEENA , SR. DR DATE OF HEARIN G : 03.10 .201 8 DATE OF PRONOUNCE MENT : 03 .10 .201 8 ORDER THIS IS AN APPEAL BY THE ASSESSEE AGAINST THE ORDER DATED 28.02.2018 OF LD. CIT(A ) - I , NOIDA . 2. FOLLOWING GROUNDS HAVE BEEN RAISED IN THIS APPEAL: 1. THAT THE C1T(A) HAS ER RED BOTH ON FACTS AND IN LAW BY PASSING AN EX - PARTY ORDER U/S 250 OF THE I .T. ACT. 2. THAT THE C1T(A) HAS PASSED THE ORDER WITHOUT GIVING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. 3. THE CIT(A) HAS ERRED IN UPHOLDING THE DISALLOWANCE OF 1 /10 TH OF TH E FOLLOWING EXPENSES: A. EVENT MANAGEMENT EXPENSES RS.69,83,381/ - B. FUEL AND PETROL EXPENSES RS.2,93,764/ - C. TRAVELLING EXPENSES RS.94,644/ - D. TELEPHONE/MOBILE EXPENSES RS.46.109/ - TOTAL 74,17,898/ - ITA NO . 2917 /DE L/2018 STREME SPORTS ORGANISATION 2 4. THE APPELLANT RESERVES TO ITSELF, THE RIGHT TO ADD, ALTER, AMEND, SUBSTITUTE AND WITHDRAW ANY GROUND(S) OF APPEAL ON OR BEFORE THE DATE OF HEARING. 3. THE MAIN GRIEVANCE OF THE ASSESSEE VIDE GROUND NO. 2 RELATES TO THE EX - PARTE ORDER PASSED BY THE LD. CIT(A) WITHOUT GIVING AN OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 4. FACTS OF THE CASE IN BRIEF ARE THAT THE ASSESSEE FILED THE RETURN OF INCOME ON 28.09.2013 DECLARING AN INCOME OF RS.19,17,478/ - . LATER ON, THE CASE WAS S ELECTED FOR SCRUTINY. THE AO MADE THE DISALLOWANCE OF RS.7,41,789/ - BEING 1/10 TH OF THE EXPENSES AND ACCORDINGLY ASSESSED THE INCOME AT RS.26,59,270/ - . 5 . BEING AGGRIEVED THE ASSESSEE CARRIED THE MATTER TO THE LD. CIT(A) WHO DISMISSED THE APPEAL EX - PARTE BY OBSERVING AS UNDER: 2. THE APPEAL OF THE APPELLANT WAS FIXED FOR HEARING FOR 31.05.2017 AND AGAIN FOR 23.02.2018. THERE HAS BEEN NO RESPONSE, NEITHER THE APPELLANT HAS ENTERED APPEARANCE NOR ANY REQUEST FOR ADJOURNMENT HAS BEEN RECEIVED. AS THE APPELLA NT IS NOT KEEN ON PROSECUTING ITS APPEAL THE SAME IS DISMISSED FOR WANT OF PROSECUTION. THE IMPUGNED ASSESSMENT ORDER STANDS DISMISSED. 6 . NOW THE ASSESSEE IS IN APPEAL. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT NO NOTICE FOR HEARING WAS SERVED UPO N THE ASSESSEE. THEREFORE, THE LD. CIT(A) WAS NOT JUSTIFIED IN DISMISSING THE APPEAL FOR WANT OF PROSECUTION. 7 . IN HIS RIVAL SUBMISSIONS, THE LD. SR. DR SUPPORTED THE ORDER OF THE LD. CIT(A). ITA NO . 2917 /DE L/2018 STREME SPORTS ORGANISATION 3 8 . I HAVE CONSIDERED THE SUBMISSIONS OF BOTH THE PARTIES AND CAREFULLY GONE THROUGH THE MATERIAL AVAILABLE ON THE RECORD. IN THE PRESENT CASE, IT IS NOTICED THAT THE LD. CIT(A) NOWHERE STATED THAT NOTICE FOR HEARING WAS SERVED UPON THE ASSESSEE. HE DECIDED THE APPEAL EX - PARTE AND DISMISSED THE SAME IN LIMINE. IT IS WELL SETTLED THAT NOBODY SHOULD BE CONDEMNED UNHEARD AS PER THE MAXIM AUDI ALTERAM PARTEM . I , THEREFORE, BY KEEPING IN VIEW THE PRINCIPLES OF NATURAL JUSTICE, DEEM IT APPROPRIATE TO REMAND THIS ISSUE BACK TO THE FILE OF THE LD. CIT(A) TO BE ADJUDICATED AFRESH IN ACCORDANCE WITH LAW AFTER PROVIDING DUE AND REASONABLE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 9 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES . ( ORDER PRON OUNCED I N TH E COURT ON 03 /10 / 2018 ) SD/ - (N. K. SAINI) ACCOUNTANT MEMBER DATED: 03 /10 /2018 *SUBODH* COPY FORWARDED TO: 1 . APPELLANT 2 . RESPONDENT 3 . CIT 4 . CIT(APPEALS) 5 . DR: ITA T ASSISTANT REGISTRAR