MAFATLAL DENIM LTD, MUMBAI V. ADDL CIT RG 9(2), MUMBAI

ITA 2976/MUM/2013

• Counselvise Citation: [2016] 133 COUNSELVISE.COM (IT) 3583 (ITAT-MUMBAI)
• Duration Of Justice: 2 year(s) 10 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-03-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 29-07-2015
• Assessment Year: 2006-2007
• Appeal Filed On: 17-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: Z A KACHWALA
• Keywords: Principle of natural justice

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI SANJAY ARORA, ACCOUNTANT MEMBER ITA NO.2976/MUM/2013 ASSESSMENT YEAR:2006-07 MAFATLA DENIM LIMITED, KALEDONIA, OFFICE NO.3, 6 TH FLOOR, SAHAR ROAD, ANDHERI(EAST), MUMBAI-400069 VS DCIT, CIRCLE-9(2), AAYAKAR BHAVAN, M.K.ROAD, MUMBAI-400020 ( ! ' /ASSESSEE) ( # / REVENUE) PAN. NO. AAACM3977B % #& ' ' ( / DATE OF HEARING : 02/03/2016 ' ' ( / DATE OF ORDER: 02/03/2016 ! ' / ASSESSEE BY MS. Z.A. KACHWALA # / REVENUE BY SHRI D. PRABHAKAR REDDY-DR ITA NO.2976/MUM/2013 MAFATLAL DENIM LTD. 2 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DAT ED 12/02/2013, OF THE LD. FIRST APPELLATE AUTHORITY, M UMBAI, ON THE GROUND THAT AN EX-PARTE ORDER WAS PASSED BY THE LD. FIRST APPELLATE AUTHORITY AS THE NOTICES WERE SENT AT THE WRONG ADDRESS BY THE OFFICE OF THE LD. COMMISSIONER OF IN COME TAX (APPEALS), THUS, THERE IS VIOLATION OF PRINCIPLE OF NATURAL JUSTICE AND CONSEQUENT UPHOLDING LEVY OF PENALTY U/S 271(1) (C) OF THE INCOME TAX ACT, 1961 (HEREINAFTER THE ACT). 2. DURING HEARING OF THIS APPEAL, THE LD. COUNSE L FOR THE ASSESSEE, MS. Z.A. KACHWALA, INVITED OUR ATTENT ION TO THE LETTER DATED 05/11/2012, ADDRESSED TO THE OFFICE OF THE LD. FIRST APPELLATE AUTHORITY DULY RECEIVED BY THE OFFI CE ON 06/11/2012. THIS LETTER WAS NOT CONTRADICTED BY THE LD. DR, SHRI D. PRABHAKAR REDDY. 2.1. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WITHOUT G OING INTO MUCH DELIBERATION, WE FIND THAT THE ASSESSEE CHALLE NGED THE LEVY OF PENALTY U/S 271(1)(C) BEFORE THE LD. COMMIS SIONER OF INCOME TAX (APPEALS). HOWEVER, AS IS EVIDENT FROM THE IMPUGNED ORDER, NOBODY REPRESENTED THE ASSESSEE AS THE NOTICES, SENT TO THE ASSESSEE WERE RETURNED BACK BY THE POSTAL AUTHORITIES WITH THE REMARK LEFT, THUS, THE APPEA L WAS DECIDED EX-PARTE. IT IS NOTED THAT THE ASSESSEE VI DE LETTER DATED 05/11/2012 (PHOTOCOPY FILED BY THE ASSESSEE) FURNISHED ITA NO.2976/MUM/2013 MAFATLAL DENIM LTD. 3 NEW ADDRESS TO THE OFFICE OF THE LD. COMMISSIONER O F INCOME TAX (APPEALS) WHICH IS DULY RECEIVED ON 06/11/2012 MENTIONING THE ADDRESS FOR CORRESPONDENCE ALONG WIT H TELEPHONE NUMBER. HOWEVER, THE NOTICES WERE SENT T O THE ASSESSEE AT THE OLD ADDRESS. IN VIEW OF THIS FACTU AL MATRIX AND WITHOUT GOING INTO THE MERITS OF THE APPEAL, WE REM AND THIS FILE TO THE FILE OF THE LD. COMMISSIONER OF INCOME TAX ( APPEALS) TO ADJUDICATE THE APPEAL OF THE ASSESSEE ON MERIT AFRE SH IN ACCORDANCE WITH LAW. THE ASSESSEE BE GIVEN OPPORTUN ITY OF BEING HEARD WITH FURTHER LIBERTY TO FURNISH EVIDENC E, IF ANY, IN SUPPORT OF ITS CLAIM. THE ASSESSEE IS ALSO DIRECTED TO APPROACH THE OFFICE OF THE LD. COMMISSIONER OF INCOME TAX (A PPEALS) WITHIN ONE MONTH FROM THE RECEIPT OF THIS ORDER AND THE LD. FIRST APPELLATE AUTHORITY IS FREE TO ADJUDICATE THE APPEAL OF THE ASSESSEE ON ANY MUTUALLY AGREED DATE. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. FINALLY, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD. REPRESENTATIVE FROM BOTH SIDES AT T HE CONCLUSION OF THE HEARING ON 02/03/2016. SD/- SD/- ( SANJAY ARORA ) (JOGINDER SINGH) ! ' / ACCOUNTANT MEMBER # ' /JUDICIAL MEMBER % & MUMBAI; ) DATED : 02/03/2016 F{X~{T? P.S/. . . ITA NO.2976/MUM/2013 MAFATLAL DENIM LTD. 4 $#%&'(')% / COPY OF THE ORDER FORWARDED TO : 1. +,- / THE APPELLANT 2. ./,- / THE RESPONDENT. 3. 0 0 % 1' ( + ) / THE CIT, MUMBAI. 4. 0 0 % 1' / CIT(A)- , MUMBAI 5. 3#4 .' , 0 +( 5 , % & / DR, ITAT, MUMBAI 6. 7& / GUARD FILE. / BY ORDER, /3+' .' //TRUE COPY// / (DY./ASSTT. REGISTRAR) , % & / ITAT, MUMBAI