M/s Compact Disc India Ltd., Chandigarh V. Addl. CIT, Chandigarh

ITA 309/CHANDI/2011

• Counselvise Citation: 30921514 RSA 2011
• Duration Of Justice: 9 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-12-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 26-12-2011
• Assessment Year: 2007-2008
• Appeal Filed On: 22-03-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: N K SAINI
• Keywords: Principle of natural justice

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH B CHANDIGARH BEFORE SHRI H.L.KARWA, VICE PRESIDENT AND SHRI MEHAR SINGH, ACCOUNTANT MEMBER ITA NO. 309/CHD/2011 ASSESSMENT YEAR: 2007-08 M/S COMPACT DISC INDIA LTD., V ADDL.CIT, RANGE-II SCO 856, NAC, MANI MAJRA, CHANDIGARH. CHANDIGARH. PAN: AAACC-6197R (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SUDHIR SEHGAL RESPONDENT BY : SHRI N.K.SAINI DATE OF HEARING : 26.12.2011 DATE OF PRONOUNCEMENT : 27.12.2011 ORDER PER MEHAR SINGH, AM THE PRESENT APPEAL FILED BY THE ASSESSEE IS DIRECTE D AGAINST THE ORDER DATED 16.11.2010 PASSED BY THE LD . CIT(A) U/S 250 OF THE INCOME-TAX ACT,1961 (IN SHORT 'THE A CT'). 2. IN THIS APPEAL, THE ASSESSEE HAS RAISED THE FOLL OWING RELEVANT GROUND OF APPEAL: 1. THAT THE CIT(A) HAS ERRED IN OBSERVING THAT THE ASSESSEE DID NOT COOPERATE WITH THE AO DURING REMAND PROCEEDINGS AND, IN FACT, SHE SHOULD HAVE CONFRONTED THE APPELLANT OF THE ALLEGATIONS MADE BY THE AO TO THE CIT(A) ABOUT THE NON-COOPERATIVE ATTITUDE OF THE ASSESSEE. 3. IN THE COURSE OF APPELLATE PROCEEDINGS, LD. 'AR' CONTENDED THAT THE CIT(A) FAILED TO AFFORD PROPER A ND 2 REASONABLE OPPORTUNITY TO THE ASSESSEE IN RESPECT O F THE REMAND REPORT OBTAINED BY HER. IN VIEW OF THIS, IT IS A GROSS VIOLATION OF NATURAL JUSTICE AND ASSESSEE FAILED TO PRESENT HIS CASE AND TO MEET THE NECESSARY REQUIREMENTS AT THE FIRST APPELLATE STAGE. LD. 'AR' FURTHER CONTENDED THAT V IOLATION OF THE PRINCIPLE OF NATURAL JUSTICE GOES TO THE ROOTS OF THE ISSUE AND HENCE, THE CASE MAY BE RESTORED TO THE FILE OF THE CIT(A) WITH A VIEW TO PROVIDING PROPER AND REASONABLE OPPO RTUNITY TO THE ASSESSEE IN RESPECT OF THE ISSUES RAISED BY THE AO IN THE REMAND REPORT. 4. LD. 'DR' DID NOT OBJECT TO THE CONTENTION RAISED BY THE AO. 5. WE HAVE CAREFULLY PERUSED THE FACTS OF CASE, RIV AL SUBMISSIONS AND FOUND THAT THE ISSUES RAISED IN THE ORDER PASSED BY CIT(A) DATED 10.11.2010 HAVE BEEN ADJUDIC ATED WITHOUT AFFORDING PROPER OPPORTUNITY TO THE ASSESSE E IN RESPECT OF THE REMAND REPORT OBTAINED BY THE CIT(A) . 6. HAVING REGARD TO THE FACT SITUATION OF THE CASE, RIVAL SUBMISSIONS AND THE RELEVANT RECORDS IN THE FORM OF ASSESSMENT ORDER AND ORDER OF THE FIRST APPELLATE A UTHORITY, WE ARE OF THE CONSIDERED OPINION THAT A REASONABLE AND PROPER OPPORTUNITY NEEDS TO BE GIVEN TO THE ASSESSE E WITH A VIEW TO MEET THE ENDS OF JUSTICE. IT IS INCUMBENT UPON THE QUASI-JUDICIAL AUTHORITY TO AFFORD PROPER AND EFFEC TIVE OPPORTUNITY TO BOTH THE PARTIES WITH A VIEW TO ADVA NCING THE CAUSE OF JUSTICE. ACCORDINGLY, THE ISSUES ADJUDICA TED IN THE ORDER OF THE FIRST APPELLATE AUTHORITY CAN BE JUDIC IOUSLY 3 CONSIDERED AND ADJUDICATED IN THE LIGHT OF THE SUBM ISSIONS TO BE FILED BY THE ASSESSEE IN THE LIGHT OF THE REM AND REPORT IN QUESTION. CONSEQUENTLY, THE CASE IS RESTORED TO THE FILE OF THE CIT(A), WITH A DIRECTION TO AFFORD PROPER OPPOR TUNITY TO THE ASSESSEE AND DECIDE THE APPEAL AFRESH, IN ACCOR DANCE WITH LAW. THE ASSESSEE IS ALSO DIRECTED TO RENDER E FFECTIVE COOPERATION TO THE CIT(A) IN PROPER DISPOSAL OF THE CASE. 7. THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATIS TICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27 TH DEC.,2011. SD/- SD/- (H.L.KARWA) (MEHAR SINGH) VICE PRESIDENT ACCOUNTANT MEMBER DATED: 27 TH DEC.,2011. POONAM COPY TO: THE APPELLANT, THE RESPONDENT, THE CIT(A), THE CIT,DR ASSISTANT REGISTRAR, ITAT CHANDIGARH