Kalanikethan Textiles & Retails (India) Private Limited, Vijayawada V. The Deputy Commissioner of Income Tax, Circle-2(1), , Hyderabad

ITA 328/VIZ/2019

• Counselvise Citation: [2021] 108 COUNSELVISE.COM (IT) 5908 (ITAT-HYDERABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-04-2021
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: DB-A
• Assessment Year: 2014-2015
• Appeal Filed On: 23-05-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: C S SUBRAHMANYAM
• Keywords: Principle of natural justice
• Section: 143(3); 68

Judgement Text

1 IN THE INCOME TAX APPELLATE TRIBUNAL HYDERABAD BENCH A, HYDERABAD (THROUGH VIRTUAL HEARING) BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER ITA NO. 328/VIZ/2019 A.Y. 2014 - 15 KALANIKETHAN TEXTILES & RETAILS (INDIA) PRIVATE LIMITED, VIJAYAWADA. PAN: AAECK 9224 B VS. THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), HYDERABAD. (APPELLANT) (RESPONDENT) ASSESSEE BY: SHRI C.S. SUBRAHMANYAM REVENUE BY: SHRI SUNIL KUMAR PANDEY, DR DATE OF HEARING: 15/04/2021 DATE OF PRONOUNCEMENT: 19/04/2021 ORDER THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE ORDER OF THE LD. CIT(A) - 2, HYDERABAD IN APPEAL NO. 10281/2016 - 17/CIT(A) - 2, DATED 8/4/2019 PASSED U/S. 143(3) R.W.S 250(6) OF THE ACT FOR THE A.Y. 2014 - 15. 2. THE ASSESSEE HAS RAISED FOUR GROUNDS IN ITS APPEAL AND THEY ARE EXTRACTED HEREIN BELOW FOR REFERENCE: - ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE AND IN LAW THE CIT(A) ERRED: (1) IN NOT GRANTING PROPER OPPORTUNITY TO THE APPELLANT COMPANY AND ADJUDICATING THE APPEAL EX - PARTE THEREBY VIOLATING THE PRINCIPLES OF NATURAL JUSTICE. 2 (2) IN NOT CONSIDERING THE E - M AILS SEEKING ADJOURNMENT DUE TO THE AUTHORISED REPRESENTATIVE NOT IN A POSITION TO ATTEND DUE TO ILL - HEALTH OF HIS WIFE AND SUBSEQUENT DEMISE DEPARTING TO HEAVENLY ABODE. (3) IN CONFIRMING THE ADDITION OF RS. 53,30,476/ - AS UNEXPLAINED U/S. 68 AND IGNORING THE EVIDENCE ON RECORD. (4) CONFIRMING THE ADDITION OF DISALLOWING EXPENDITURE OF RS. 36,23,993/ - WIT HOUT APPRECIATING THE EVIDENCE ON RECORD. 3. AT THE OUTSET, THE LD. AR SUBMITTED BEFORE US STATING THAT THE LD. CIT (A) HAS PASSED EX - PARTE ORDER WITHOUT PROVIDING AN OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. IT WAS THEREFORE PLEADED THAT THE MATTER MAY BE REMITTED BACK TO THE FILE OF THE LD . CIT (A) IN ORDER TO PROVIDE ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD . LD. DR, ON THE OTHER HAND, VEHEMENTLY OPPOSED TO THE SUBMISSIONS OF THE LD. AR AND ARGUED THAT SUFFICIENT OPPORTUNITIES HAD BEEN PROVIDED TO THE ASSESSEE HOWEVER, ON THE GIVEN DATES OF HEARING, NEITHER THE ASSESSEE NOR ITS REPRESENTATIVE APPEARED BEFORE THE LD. CIT (A). THEREFORE THE LD. CIT (A) HAD NO OTHER OPTION BUT TO PASS EX - PARTE ORDER BASED ON THE MATERIALS AVAILABLE ON RECORD. HENCE, IT WAS PLEADED THAT THE ORDER PASSED BY THE LD. CIT(A) DOES NOT CALL FOR ANY INTERFERENCE. 4. WE HAVE HEARD THE RIVAL SUBMISSIONS AND CAREFULLY PERUSED THE MATERIALS ON RECORD. ON EXAMINING THE FACTS OF THE CASE, WE FIND MERIT IN THE SUBM ISSIONS OF THE LD. DR. THE LD. CIT (A) HAD POSTED THE CASE ON SEVERAL OCCASIONS. HOWEVER, NONE APPEARED ON BEHALF OF THE ASSESSEE BEFORE THE CIT(A) ON THE DATES OF HEARING. THEREFORE, THE LD. CIT (A) WAS 3 LEFT WITH NO OTHER OPTION EXCEPT TO ADJUDICATE TH E APPEAL EX - PARTE. IN THIS SITUATION, WE DO NOT FIND MUCH STRENGTH IN THE ARGUMENTS ADVANCED BY THE LD. AR. HOWEVER, CONSIDERING THE PRAYER OF THE LD. AR AS WELL AS THE ISSUES INVOLVED IN THE APPEAL , IN THE INTEREST OF JUSTICE, WE HEREBY REMIT THE MATTER BACK TO THE FILE OF LD. CIT (A) IN ORDER TO CONSIDER THE APPEAL AFRESH ON MERITS BY PROVIDING ONE MORE OPPORTUNITY TO THE ASSESSEE OF BEING HEARD. AT THE SAME BREATH, WE ALSO HEREBY CAUTION THE ASSESSEE TO PROMPTLY CO - OPERATE BEFORE THE LD. CIT (A) IN THE PROCEEDINGS , FAILING WHICH THE LD. CIT (A) SHALL BE AT LIBERTY TO PASS APPROPRIATE ORDER IN ACCORDANCE WITH LAW AND MERITS BASED ON THE MATERIALS ON THE RECORD. IT IS ORDERED ACCORDINGLY. 5. IN THE RESULT, APPEAL FILED BY THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES AS INDICATED HEREINABOVE. PRONOUNCED IN THE OPEN COURT ON 19 TH APRIL, 2021. SD/ - SD/ - (P. MADHAVI DEVI) ( A. MOHAN ALANKAMONY ) JUDICIAL MEMBER ACCOUNTANT MEMBER HYDERABAD, DATED: 19 TH APRIL , 2021 OKK COPY TO: - 1) KALANIKETHAN TEXTILES & RETAILS (INDIA) PRIVATE LIMITED, SHOP NO.18,19, VHR MUNICIPAL COMPLEX, VIJAYAWADA. 2) THE DEPUTY COMMISSIONER OF INCOME TAX, CIRCLE - 2(1), HYDERABAD. 3) THE CIT (A) - 2, HYDERABAD. 4 4) THE PR. CIT - 2, HYDERABAD. 5) THE DR, ITAT, HYDE RABAD 6) GUARD FILE