FAIRMACS SHIPPING AND TRANSPORT SERVICES (P) LTD., CHENNAI V. ACIT CORPORATE CIRCLE 2(1), CHENNAI

ITA 2952/CHNY/2018

• Counselvise Citation: [2019] 112 COUNSELVISE.COM (IT) 6913 (ITAT-CHENNAI)
• Duration Of Justice: 4 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 01-03-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: 2013-2014
• Appeal Filed On: 23-10-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R CLEMENT RAMESH KUMAR
• Assessee Lawyers: G SEETHARAMAN
• Keywords: Set aside

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, CHENNAI . . . , . !, # !$ BEFORE SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI S. JAYARAMAN, ACCOUNTANT MEMBER ./ ITA NOS.1286 & 2952/CHNY/2018 & '& / ASSESSMENT YEAR : 2013-14 M/S FAIRMACS SHIPPING AND TRANSPORT SERVICES PRIVATE LTD., NO.14, MOORE STREET, CHENNAI - 600 001. PAN : AAACF 0474 A V. THE ASSISTANT COMMISSIONER OF INCOME TAX, CORPORATE CIRCLE 2(1), CHENNAI - 600 034. ()*/ APPELLANT) (+,)*/ RESPONDENT) )* - . / APPELLANT BY : SHRI G. SEETHARAMAN, FCA +,)* - . / RESPONDENT BY : SHRI R. CLEMENT RAMESH KUMAR, ADDL.CIT / - 0# / DATE OF HEARING : 27.02.2019 12' - 0# / DATE OF PRONOUNCEMENT : 01.03.2019 / O R D E R PER N.R.S. GANESAN, JUDICIAL MEMBER : BOTH THE APPEALS OF THE ASSESSEE ARE DIRECTED AG AINST THE RESPECTIVE ORDERS OF THE COMMISSIONER OF INCOME TAX (APPEALS)-6, CHENNAI, DATED 15.03.2018 AND PERTAIN TO ASSESSMENT YEAR 2013- 14. I.T.A. NO.1286/CHNY/2018 RELATES TO QUANTUM AD DITION MADE BY THE ASSESSING OFFICER, WHEREAS, I.T.A. NO.2952/CHNY /2018 IS 2 I.T.A. NOS.1286 & 2952/CHNY/18 AGAINST THE PENALTY LEVIED BY THE ASSESSING OFFICER . THEREFORE, WE HEARD BOTH THE APPEALS TOGETHER AND DISPOSING THE S AME BY THIS COMMON ORDER. 2. SHRI G. SEETHARAMAN, THE LD. REPRESENTATIVE FOR THE ASSESSEE, SUBMITTED THAT THE CIT(APPEALS) ISSUED NO TICE FOR ENHANCEMENT ON 21.02.2018 CALLING UPON THE ASSESSEE TO SUBMITS ITS EXPLANATION ON OR BEFORE 26.02.2018. ACCORDING TO THE LD. REPRESENTATIVE, 26.02.2018 FALLS ON MONDAY. THE NO TICE WAS SERVED ON THE ASSESSEE ON 25.02.2018 WHICH FALLS ON SUNDAY . THEREFORE, THE ASSESSEE REQUESTED FOR ADJOURNMENT FOR 15 DAYS. ACCORDING TO THE LD. REPRESENTATIVE, THE CIT(APPEALS) DID NOT AD JOURN THE CASE. HOWEVER, HE STRAIGHTAWAY PASSED THE IMPUGNED ORDER ENHANCING THE ASSESSMENT MADE BY THE ASSESSING OFFICER. THER EFORE, THE LD. REPRESENTATIVE SUBMITTED THAT AN OPPORTUNITY MAY BE GIVEN TO THE ASSESSEE TO GIVE EXPLANATION ON THE NOTICE BEFORE T HE CIT(APPEALS). 3. ON THE CONTRARY, SHRI R. CLEMENT RAMESH KUMAR, T HE LD. DEPARTMENTAL REPRESENTATIVE, SUBMITTED THAT NO DOUB T, THE ASSESSEE FILED APPLICATION FOR ADJOURNMENT SEEKING A FORTNIGHT TIME. HOWEVER, TILL 15 TH MARCH, 2018, THE ASSESSEE HAD NOT TURNED UP. 3 I.T.A. NOS.1286 & 2952/CHNY/18 THEREFORE, ACCORDING TO THE LD. D.R., THE CIT(APPEA LS) WAS FORCED TO PASS THE ORDER. ON A QUERY FROM THE BENCH WHETH ER THE CIT(APPEALS) ADJOURNED THE CASE ON THE BASIS OF REQ UEST MADE BY THE ASSESSEE? THE LD. D.R. COULD NOT CLARIFY THE S AME. 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS ON EITH ER SIDE AND PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. NO DOUBT, THE APPEAL WAS POSTED ON 26.02.2018. IT IS ALSO NOT IN DISPUTE THAT THE ASSESSEE FILED APPLICATION FOR ADJOURNMENT SEEKING 15 DAYS TIME FOR FILING THE EXPLANATION WITH REGARD TO THE NOTICE FO R ENHANCEMENT. THE DEPARTMENT CLAIMS THAT TILL 15 TH MARCH, 2018, THE ASSESSEE HAD NOT RESPONDED. THE FACT REMAINS THAT THE APPEAL WA S NOT ADJOURNED AND THE DATE OF POSTING WAS NOT INTIMATED TO THE AS SESSEE. WHEN THE APPEAL WAS NOT ADJOURNED AND THE DATE OF POSTIN G WAS NOT INTIMATED TO THE ASSESSEE, IT NOT KNOWN HOW THE CIT (APPEALS) CLAIMS THAT THE ASSESSEE HAD NOT RESPONDED TILL 15 TH MARCH, 2018. THEREFORE, THIS TRIBUNAL IS OF THE CONSIDERED OPINI ON THAT AN OPPORTUNITY SHALL BE GIVEN TO THE ASSESSEE TO GIVE EXPLANATION ON THE NOTICE ISSUED BY THE CIT(APPEALS) FOR ENHANCEME NT. THIS TRIBUNAL IS OF THE CONSIDERED OPINION THAT GIVING O NE MORE OPPORTUNITY TO THE ASSESSEE WOULD NOT PREJUDICE THE INTERESTS OF 4 I.T.A. NOS.1286 & 2952/CHNY/18 REVENUE. MOREOVER, GIVING SUCH AN OPPORTUNITY TO T HE ASSESSEE WOULD DEFINITELY PROMOTE THE CAUSE OF JUSTICE. TH EREFORE, IN THE INTEREST OF JUSTICE, BOTH THE ORDERS OF THE CIT(APP EALS) ARE SET ASIDE AND THE ENTIRE ISSUE IS REMITTED BACK TO THE FILE O F THE CIT(APPEALS). THE CIT(APPEALS) SHALL RE-EXAMINE THE MATTER AND GI VE SUFFICIENT OPPORTUNITY TO THE ASSESSEE TO EXPLAIN WITH REGARD TO THE NOTICE FOR ENHANCEMENT AND THEREAFTER DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW. 5. IN THE RESULT, BOTH THE APPEALS FILED BY THE ASS ESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 1 ST MARCH, 2019 AT CHENNAI. SD/- SD/- (. !) ( . . . ) (S. JAYARAMAN) (N.R.S. GANESAN) # / ACCOUNTANT MEMBER /JUDICIAL MEMBER /CHENNAI, 4 /DATED, THE 1 ST MARCH, 2019. KRI. 5 I.T.A. NOS.1286 & 2952/CHNY/18 - +056 76'0 /COPY TO: 1. )*/ APPELLANT 2. +,)*/ RESPONDENT 3. / 80 () /CIT(A)-6, CHENNAI 4. PRINCIPAL CIT-2, CHENNAI 5. 69 +0 /DR 6. :& ; /GF.