Fairland Development (P) Ltd. (Now Fairland Development India Ltd.), Kolkata V. I.T.O.,Ward-10(2), Kolkata

ITA 306/KOL/2020

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 0686 (ITAT-KOLKATA)
• Duration Of Justice: 2 month(s) 29 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2010-2011
• Appeal Filed On: 13-03-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: DHRUBOJYOTI ROY
• Keywords: Opportunity of being heard; Set aside
• Section: 143(3); 142(1); 250; 148; 263; 144

Judgement Text

ITA NOS. 306 & 307/KOL/2020 ASS ESSMENT YEARS: 2010-2011 & 2011-2012 FAIRLAND DEVELOPMENT (P) LIMITED (NOW FAIRLAND DEVELOPMENT INDIA LIMITED) 1 IN THE INCOME TAX APPELLATE TRIBUNAL, KOLKATA D BENCH, KOLKATA [VIRTUAL COURT HEARING] BEFORE SHRI P.M. JAGTAP, VICE-PRESIDENT & SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A. NOS. 306 & 307/KOL/2020 ASSESSMENT YEARS: 2010-2011 & 2011-2012 FAIRLAND DEVELOPMENT (P) LIMTIED,.................. .......................APPELLANT (NOW FAIRLAND DEVELOPMENT INDIA LIMITED), C/O. SUBASH AGARWAL & ASSOCIATES, SIDDHA GIBSON, 1, GIBSON LANE, SUITE 213, 2 ND FLOOR, KOLKATA-700069 [PAN: AABCF0094K] -VS.- INCOME TAX OFFICER,................................ ...................................RESPONDENT WARD-10(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 APPEARANCES BY: SHRI SUBASH AGARWAL, ADVOCATE, FOR THE APPELLANT SHRI DHRUBOJYOTI ROY, JCIT, D.R., FOR THE RESPONDEN T DATE OF CONCLUDING THE HEARING : JUNE 11, 2020 DATE OF PRONOUNCING THE ORDER : JUNE 11, 2020 O R D E R PER SHRI P.M. JAGTAP, VICE-PRESIDENT :- THESE TWO APPEALS FILED BY THE ASSESSEE ARE DIRECT ED AGAINST TWO SEPARATE ORDERS PASSED BY THE LD. COMMISSIONER OF INCOME TAX (APPEALS)- 4, KOLKATA, BOTH DATED 27.12.2019 PASSED EX-PARTE, WHEREBY HE DISMISSED THE APPEALS OF THE ASSESSEE FOR A.Y. 2010-11 AND 20 11-12. 2. THE ASSESSEE IN THE PRESENT CASE IS A COMPANY, W HICH IS ENGAGED IN THE BUSINESS OF LAND DEVELOPMENT. THE RETURN OF INC OME FOR A.Y. 2010-11 WAS FILED BY IT ON 05.10.2010 DECLARING TOTAL INCOM E OF RS.1,02,898/-. IN THE ASSESSMENT ORIGINALLY COMPLETED UNDER SECTION 1 44 VIDE AN ORDER ITA NOS. 306 & 307/KOL/2020 ASS ESSMENT YEARS: 2010-2011 & 2011-2012 FAIRLAND DEVELOPMENT (P) LIMITED (NOW FAIRLAND DEVELOPMENT INDIA LIMITED) 2 DATED 23.03.2013, THE TOTAL INCOME OF THE ASSESSEE WAS DETERMINED BY THE ASSESSING OFFICER AT RS.25,61,950/-. THE SAID ASSES SMENT WAS SUBSEQUENTLY SET ASIDE BY THE CONCERNED LD. CIT VID E AN ORDER UNDER SECTION 263 WITH A DIRECTION TO THE ASSESSING OFFIC ER TO MAKE THE ASSESSMENT AFRESH ON CERTAIN POINTS SPECIFIED BY HI M IN THE ORDER UNDER SECTION 263. ACCORDINGLY A FRESH ASSESSMENT WAS MAD E BY THE ASSESSING OFFICER UNDER SECTION 144 READ WITH SECTION 263 VID E AN ORDER DATED 16.03.2016 DETERMINING THE TOTAL INCOME OF THE ASSE SSEE AT RS.36,16,280/-. AS NOTICED BY THE ASSESSING OFFICER , NO RETURN OF INCOME FOR A.Y. 2011-12 WAS FILED BY THE ASSESSEE. HE, THE REFORE, ISSUED A NOTICE UNDER SECTION 148. THERE WAS, HOWEVER, NO COMPLIANC E ON THE PART OF THE ASSESSEE TO THE SAID NOTICE ISSUED UNDER SECTION 14 8 AS WELL AS SUBSEQUENT NOTICES ISSUED UNDER SECTION 143(3) AND 142(1) OF THE ACT. THE ASSESSING OFFICER, THEREFORE, COMPLETED THE ASS ESSMENT UNDER SECTION 144/147 OF THE ACT VIDE AN ORDER DATED 21.03.2016, WHEREIN THE ADDITION OF RS.1,20,00,000/- WAS MADE BY THE ASSESSING OFFIC ER TO THE TOTAL INCOME OF THE ASSESSEE ON ACCOUNT OF UNEXPLAINED INVESTMEN T MADE IN THE PURCHASES OF IMMOVABLE PROPERTY. 3. AGAINST THE ORDER PASSED BY THE ASSESSING OFFICE R UNDER SECTION 144 READ WITH SECTION 263 FOR A.Y. 2010-11 AND THE ORDE R PASSED UNDER SECTION 144/147 FOR A.Y. 2011-12, APPEALS WERE PREF ERRED BY THE ASSESSEE BEFORE THE LD. CIT(APPEALS) AND SINCE THERE WAS NO SATISFACTORY COMPLIANCE ON THE PART OF THE ASSESSEE TO THE NOTIC ES ISSUED BY HIM FIXING THE SAID APPEALS FOR HEARING FROM TIME TO TIME, THE LD. CIT(APPEALS) DISMISSED THE SAID APPEALS OF THE ASSESSEE FOR NON- PROSECUTION VIDE HIS TWO SEPARATE APPELLATE ORDERS BOTH DATED 27.12.2019 PASSED EX-PARTE. AGGRIEVED BY THE ORDERS OF THE LD. CIT(APPEALS), TH E ASSESSEE HAS PREFERRED THESE APPEALS BEFORE THE TRIBUNAL. ITA NOS. 306 & 307/KOL/2020 ASS ESSMENT YEARS: 2010-2011 & 2011-2012 FAIRLAND DEVELOPMENT (P) LIMITED (NOW FAIRLAND DEVELOPMENT INDIA LIMITED) 3 4. WE HAVE HEARD THE ARGUMENTS OF BOTH THE SIDES AN D ALSO PERUSED THE RELEVANT MATERIAL AVAILABLE ON RECORD. IN SUPPORT O F THE PRELIMINARY ISSUE RAISED BY THE ASSESSEE IN THESE APPEALS CHALLENGING THE IMPUGNED ORDERS PASSED BY THE LD. CIT(APPEALS) EX-PARTE DISMISSING THE APPEALS OF THE ASSESSEE FOR NON-PROSECUTION, THE LD. COUNSEL FOR T HE ASSESSEE HAS SUBMITTED THAT NONE OF THE NOTICES STATED TO BE ISS UED BY THE LD. CIT(APPEALS) FIXING THE APPEALS OF THE ASSESSEE ON FOUR DIFFERENT DATES WAS EVER RECEIVED BY THE ASSESSEE AND SUCH NON-RECE IPT OF NOTICES RESULTED INTO NON-COMPLIANCE ON THE PART OF THE ASS ESSEE BEFORE THE LD. CIT(APPEALS). KEEPING IN VIEW THIS SUBMISSION MADE BY THE ASSESSEE, WHICH IS DULY SUPPORTED BY AN AFFIDAVIT FILED BY TH E DIRECTOR OF THE ASSESSEE-COMPANY AFFIRMING THE RELEVANT FACTS ON OA TH, WE ARE SATISFIED THAT THERE WAS A SUFFICIENT CAUSE FOR THE NON-COMPL IANCE OF THE ASSESSEE WHEN ITS APPEALS WERE CALLED FOR HEARINGS BEFORE TH E LD. CIT(APPEALS). EVEN THE LD. D.R. HAS NOT RAISED ANY OBJECTION IN T HIS REGARD. MOREOVER, THE LD. CIT(APPEALS) AS PER THE PROVISIONS OF SUB-S ECTION (6) OF SECTION 250 WAS REQUIRED TO DISPOSE OF THE APPEALS OF THE A SSESSEE VIDE AN ORDER IN WRITING STATING THE POINTS FOR DETERMINATION, TH E DECISION THEREON AND THE REASONS FOR THE DECISION. IT IS OBSERVED THAT T HE IMPUGNED ORDERS PASSED BY THE LD. CIT(APPEALS) DO NOT COMPLY WITH T HESE REQUIREMENTS. WE, THEREFORE, CONSIDER IT FAIR AND PROPER AND IN T HE INTEREST OF JUSTICE TO SET ASIDE THE IMPUGNED ORDERS PASSED BY THE LD. CIT (APPEALS) EX-PARTE DISMISSING THE APPEALS OF THE ASSESSEE FOR NON-PROS ECUTION AND REMIT THE MATTER BACK TO HIM FOR DISPOSING OF THE APPEALS OF THE ASSESSEE AFRESH ON MERIT IN ACCORDANCE WITH LAW AFTER GIVING PROPER AN D SUFFICIENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. AS UNDE RTAKEN BY THE LD. COUNSEL FOR THE ASSESSEE, THE ASSESSEE SHALL MAKE D UE COMPLIANCE BEFORE THE LD. CIT(APPEALS) AND SHALL EXTEND ALL THE POSSI BLE COOPERATION IN ORDER TO ENABLE THE LD. CIT(APPEALS) TO DISPOSE OF THE AP PEALS AFRESH EXPEDITIOUSLY. ITA NOS. 306 & 307/KOL/2020 ASS ESSMENT YEARS: 2010-2011 & 2011-2012 FAIRLAND DEVELOPMENT (P) LIMITED (NOW FAIRLAND DEVELOPMENT INDIA LIMITED) 4 5. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE TREATED AS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON JUNE 11, 2020 . SD/- SD/- (SATBEER SINGH GODARA) (P.M. JAGTAP) JUDICIAL MEMBER VIC E-PRESIDENT) KOLKATA, THE 11 TH DAY OF JUNE, 2020 COPIES TO : (1) FAIRLAND DEVELOPMENT (P) LIMITED, (NOW FAIRLAND DEVELOPMENT INDIA LIMITED), C/O. SUBASH AGARWAL & ASSOCIATES, SIDDHA GIBSON, 1, GIBSON LANE, SUITE 213, 2 ND FLOOR, KOLKATA-700069 (2) INCOME TAX OFFICER, WARD-10(2), KOLKATA, AAYAKAR BHAWAN, P-7, CHOWRINGHEE SQUARE, KOLKATA-700069 (3) COMMISSIONER OF INCOME TAX (APPEALS)-4, K OLKATA; (4) COMMISSIONER OF INCOME TAX- , KOLKATA (5) THE DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR, INCOME TAX APPELLATE TRIBUNAL, KOLKATA BENCHES, KOLKATA LAHA/SR. P.S.