Oneworld Resources Pvt. Ltd., Kolkata V. JCIT (OSD), CIR-5, KOLKATA, Kolkata

ITA 318/KOL/2016

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 1062 (ITAT-KOLKATA)
• Duration Of Justice: 1 year(s) 8 month(s) 22 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-11-2017
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2009-2010
• Appeal Filed On: 01-03-2016
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: ARINDAM BHATTACHARJEE
• Assessee Lawyers: MIRAJ D. SHAH
• Keywords: Principle of natural justice
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL D BENCH : KOLKATA [BEFORE HONBLE SHRI M.BALAGANESH, AM & SHRI S.S. VISWANETHRA RAVI, JM] I.T.A NO. 318/KOL/201 6 ASSESSMENT YEAR : 2009-1 0 ONEWORLD RESOURCES PVT. LTD. -VS- JCIT(O SD), CIRCLE-5 KOLKATA [PAN: AABCB 9054 D] (APPELLANT) (RESPONDENT) FOR THE APPELLANT : SHRI MIRAJ D SHAH FOR THE RESPONDENT : SHRI ARINDAM BHATTACHARJ EE, ADDL. CIT DATE OF HEARING : 09.11.2017 DATE OF PRONOUNCEMENT : 22.11.2017 ORDER PER M.BALAGANESH, AM 1. THIS APPEAL BY THE ASSESSEE ARISES OUT OF THE O RDER OF THE LEARNED COMMISSIONER OF INCOME TAX(APPEALS)-2, KOLKATA [IN SHORT THE LD CIT (A)] IN APPEAL NO.975/CIT(A)- 2/2014-15 DATED 08.02.2016 AGAINST THE ORDER PASSE D BY THE JCIT(OSD), CIRCLE-5, KOLKATA [ IN SHORT THE LD AO] UNDER SECTION 143(3) & 115WE(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) DATED 23.12.2011 FO R THE ASSESSMENT YEAR 2009-10. 2. THOUGH THE ASSESSEE HAD RAISED SEVERAL GROUNDS O F APPEAL BEFORE US, WE FIND THAT THE CENTRAL GROUND IS REVOLVED ON THE ISSUE OF VIOLATIO N OF PRINCIPLES OF NATURAL JUSTICE. HENCE THE EFFECTIVE ISSUE TO BE DECIDED IN THIS APP EAL IS AS TO WHETHER THE LD CITA WAS JUSTIFIED IN DECIDING THE APPEAL EX PARTE IN THE FA CTS AND CIRCUMSTANCES OF THE CASE. 2 ITA NO.318/KOL/2016 ONEWORLD RESOURCES PVT.LTD A.YR.2009-10 2 3. THE BRIEF FACTS OF THIS APPEAL IS THAT THE ASSES SEE IS A PRIVATE LIMITED COMPANY ENGAGED IN THE BUSINESS OF RENDERING ADVISORY AND MANAGEMEN T CONSULTANCY SERVICES. THE RETURN OF INCOME FOR THE ASST YEAR 2009-10 WAS FILED BY TH E ASSESSEE ON 30.9.2009 DECLARING TOTAL INCOME OF RS 1,09,95,880/-. THE ASSESSMENT W AS COMPLETED U/S 143(3) OF THE ACT ON 23.12.2011 DETERMINING TOTAL INCOME AT RS 1,18,3 9,300/-. IN THE SAID ASSESSMENT, THE FOLLOWING ADDITIONS WERE MADE :- DISALLOWANCE OF CLUB EXPENSES - RS 17,842 /- DISALLOWANCE OF PAYMENT MADE TO M/S LODHA & CO , MUMBAI - RS 15,21,803/- 4. THE ASSESSEE AGITATED THE DISALLOWANCES BEFORE T HE LD CITA. BEFORE THE LD CITA , THE LD AR CLAIMS TO HAVE FILED WRITTEN SUBMISSIONS NUMB ERING FROM PAGES 1 TO 17 AND ALSO FURNISHED RELEVANT DOCUMENTARY EVIDENCES IN SUPPORT OF ITS CONTENTIONS. BUT THE LD CITA HAD DISMISSED THE APPEAL EX PARTE ON THE GROUN D THAT NONE APPEARED ON BEHALF OF THE ASSESSEE AND NO WRITTEN SUBMISSIONS WERE FILED BEFORE HIM. AGGRIEVED, THE ASSESSEE IS IN APPEAL BEFORE US. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS. WE FIND THA T THE LD CITA HAD DISMISSED THE APPEAL EX PARTE WITHOUT HEARING THE ASSESSEE. THE LD AR HAD FILED A PAPER BOOK COMPRISING OF PAGES 1 TO 47 WHICH CONTAINS THE WRIT TEN SUBMISSIONS AND SUPPORTING DOCUMENTS STATED TO HAVE BEEN FILED BEFORE THE LD C ITA. WE HOLD THAT SINCE THESE SUBMISSIONS WOULD BE CRUCIAL TO ADJUDICATE THE ISSU ES UNDER DISPUTE AND THE SAME HAD NOT BEEN CONSIDERED BY THE LD CITA WHILE DISMISSING THE APPEAL EX PARTE EITHER DUE TO NON-AVAILABILITY OR FOR ANY OTHER REASON, WE DEEM I T FIT AND APPROPRIATE IN THE INTEREST OF JUSTICE AND FAIR PLAY, TO REMAND THIS APPEAL TO THE FILE OF THE LD CITA FOR ADJUDICATION OF THE GROUNDS RAISED BEFORE IT ON MERITS AND DECIDE T HE APPEAL AFRESH IN ACCORDANCE WITH 3 ITA NO.318/KOL/2016 ONEWORLD RESOURCES PVT.LTD A.YR.2009-10 3 LAW. ACCORDINGLY THE GROUNDS RAISED BY THE ASSESSE E ARE ALLOWED FOR STATISTICAL PURPOSES. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE COURT ON 22.11.2017 SD/- SD/- [S.S. VISWANETHRA RAVI] [ M.BALAGA NESH ] JUDICIAL MEMBER ACCOUNTANT MEM BER DATED : 22.11.2017 SB, SR. PS COPY OF THE ORDER FORWARDED TO: 1. ONEWORLD RESOURCES PVT. LTD., C/O, D.J. SHAH & C O., KALYAN BHAVAN, 2, ELGIN ROAD, KOLKATA-700020 2. JCIT(OSD), CIRCLE-5, KOLKATA, AAYAKAR BHAWAN, P- 7, CHOWRINGHEE SQUARE, KOLKATA-69. 3..C.I.T.- 4. C.I.T.- KOLKATA. 5. CIT(DR), KOLKATA BENCHES, KOLKATA. TRUE COPY BY ORDER SENIOR PRIVAT E SECRETARY HEAD OF OFFICE/D.D.O., ITAT, KOLKATA BENCHE S