M/s. Oaknet Healthcare Pvt Ltd, Bangalore V. Deputy Commissioner of Income Tax , Circle-5(1)(2), Bengaluru

ITA 3145/BANG/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 3659 (ITAT-BANGALORE)
• Duration Of Justice: 1 year(s) 3 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-03-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 02-03-2020
• Assessment Year: 2015-2016
• Appeal Filed On: 26-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Depreciation; Set aside
• Section: 143(3); 142(1); 250; 201; 143(2)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BANGALORE BENCHES A BENCH: BANGALORE BEFORE SHRI A.K. GARODIA , ACCOUNTANT MEMBER AND SHRI PAVAN KUMAR GADALE, JUDICIAL MEMBER ITA NO. 3145 /BANG/2018 (ASSESSMENT YEAR: 201 5 - 16 ) M/S. OAKNET HEALTHCARE PVT. LTD., NO.64, 1 ST FLOOR, 3 RD CROSS, RAMAMURTHY NAGAR, VENKATA RAMAIAH LAYOUT, BANGALORE - 560 .APPELLANT PAN AAJCA 7142F VS. DY . COMMISSIONER OF IN COME TAX, CIRCLE 5(1)(2), BANGALORE. RESPONDENT. ASSESSEE BY: SHRI CHAVALI NARAYAN, C.A. REVENUE BY: MS. NEERA MALHOTRA, CIT (D.R) DATE OF HEARING : 02.03 .20 20 DATE OF PRONOUNCEMENT : 04 .03 .20 20 O R D E R PER SHRI PAVAN KUMAR GADALE, JM : THE ASSESSEE HAS FILED AN APPEAL AGAINST THE ORDER OF COMMISSIONER OF INCOME TAX (APPEALS) - 5, BANGALORE PASSED UNDER SECTION 143(3) AND 250 OF THE INCOME TAX ACT, 1961 ('THE ACT'). 2 ITA NO. 3145/BANG/2018 2. THE ASSESSEE HAS RAISED VARIOUS GROUNDS OF APPEAL IN RESP ECT OF DISALLOWANCE MADE BY THE ASSESSING OFFICER. AT THE TIME OF HEARING, IT WAS BROUGHT TO THE KNOWLEDGE OF THE BENCH THAT THE CIT ( APPEALS) HAS CONFIRMED THE ACTION OF THE ASSESSING OFFICER AND DISMISSED THE ASSESSEE APPEAL FOR NON - PROSECUTION. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE IS ENGAGED IN THE BUSINESS OF MANUFACTURING AND PHARMACEUTICAL ENGINEERING AND FILED THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2015 - 16 ON 28.1 1.2015 DECLARING TOTAL INCOME RS NIL. SUBSEQUENTLY, THE CASE WAS SELECTED FOR SCRUTINY UNDER CASS AND NOTICE UNDER SECTION 143(2) AND 142(1) OF THE ACT WER E ISSUED. IN COMPLIANCE , THE LEARNED AUTHORIZED REPRESENTATIVE OF THE ASSSESSE HAS APPEARED BEFORE THE ASSESSING OFFIC ER AND FURNISHED THE DETAILS. THE ASS ESSING OFFICER AFTER PERUSAL OF THE INFORMATION AND SUBMISSIONS, DISALLOWED THE CLAIM OF DEPRECIATION AND ASSESSED TOTAL INCOME OF ( - ) RS.60,22,74,098 . AGGRIEVED BY THE ORDER, THE ASSESSEE HAS FILED AN APPEAL BEFORE THE CIT(APPEALS) AND CIT(APPEALS) HAS DI SMISSED THE APPEAL EX - PARTE. AGGRIEVED BY THE CIT(APPEALS) ORDER, THE ASSESSEE HAS FILED AN APPEAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, THE LEARNED AUTHORIZED REPRESENTATIVE SUBMITTED THAT THE CIT(APPEALS) HAS PASSED EX - PARTE ORDER WITHO UT CONSIDERING THE REQUEST MADE FOR ADJOURNMENT AND SUBMITTED THAT THE ASSESSEE HAS PRIMA FACIE GOOD CASE ON 3 ITA NO. 3145/BANG/2018 MERITS AND PRAYED FOR ALLOWING THE APPEAL. CONTRA, THE LEARNED DEPARTMENTAL REPRESENTATIVE SUPPORTED THE ORDERS OF CIT(APPEALS). 5. WE HEARD THE RIVAL CONTENTIONS AND PERUSED THE MATERIAL ON RECORD. THE LEARNED AUTHORIZED REPRESENTATIVE HAS RESTRICTED THE SUBMISSIONS ON THE EXPARTE OR DER PASSED BY THE CIT(APPEALS) AND EMPHASIZED THAT EARLIER THE AUTHORIZED REPRESENTATIVE WAS AUTHORIZED FOR APPEARANCE BUT COULD NOT APPEAR ON 14.09.2018 [LAST HEARING FIXED BY THE CIT (APPEALS)]FOR VARIOUS REASONS AND ONLY AFTER THE ASSESSEE RECEIVED THE EXPARTE ORDER OF CIT (APPEALS) CAME TO KNOW ABOUT NON - APPEARANCE. THE CIT(APPEALS) HAS FIXED HEARING ON 19.04.2018, 10.5.2018, 15.6.2018 AND 14.9.2018. THE ASSESSEE HAS SOUGHT ADJOURNMENT BUT NONE APPEARED ON 14.09.2018 . THE ASSESSEE HAS SUBSTANTIAL MATERIAL EVIDENCES TO CONTROVERT THE ADDITIONS MADE BY THE ASSESSING OFFICER AND PRAYED FOR AN OPPORTUNITY TO SUB STANTIATE BEFORE THE CIT(APPEALS). WE FOUND THE CIT(APPEALS) HAS PROVIDED OPPORTUNITY OF HEARING TO THE ASSESSEE BUT THE THEN LEARNED AUTHORISED REPRESENTATIVE COULD NOT APPEAR ON 14.09.2018 ON HEALTH GROUNDS AS SUBMITTED BY THE LE ARNED AUTHORIZED REPRESENTATIVE. WHEREAS THE CIT (APPEALS) B ASED ON THE WRITTEN SUBMISSIONS, HAS CONFIRMED THE ADDITIONS OF THE ASSESSING OFF ICER AND DISMISSED THE APPEAL. W E CONSIDERING THE FACTS AND CIRCUMSTANCES OF THE CASE AND SUBMISSIONS OF THE LEAR NED AUTHORIZED REPRESENTATIVE, ARE OF THE OPINION THAT THE REVENUE SHALL NOT AT LOSS IF AN OPPORTUNITY IS PROVIDED TO THE ASSESSEE. 4 ITA NO. 3145/BANG/2018 ACCORDINGLY, TO MEET THE ENDS OF JUSTICE , WE SET ASIDE THE ORDER OF CIT(APPEALS) AND RESTORE THE ENTIRE DISPUTED ISSUE TO THE CIT(APPEALS) T O ADJUDICATE AFRESH AND GRANT OPPORTUNITY OF HEARING TO THE ASSESSEE AND ASSESSEE SHALL CO - OPERATE IN SUBMITTING THE INFORMATION FOR EARLY DISPOSAL OF APPEAL AND ALLOW THE GROUNDS FOR STATISTICAL PURPOSES . 6. IN THE RESULT, APPE AL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES. PRONOUNCED IN THE OPEN COURT ON THE DATE MENTIONED ON THE CAPTION PAGE. S D / - S D / - ( A.K. GARODIA ) (PAVAN KUMAR GADALE) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 0 4 .03 . 20 20 . *REDDY GP COPY TO 1. THE APPELLANT 2. THE RESPONDENT 3. CIT (A) 4. PR. CIT 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE TRIBUNAL BANGALORE