Pravinsinh C. Jadeja HUF, RAJKOT-GUJARAT V. The Income Tax Officer, Ward-1(3), RAJKOT-GUJARAT

ITA 332/RJT/2011

• Counselvise Citation: 33224914 RSA 2011
• Duration Of Justice: 1 month(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-10-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2005-2006
• Appeal Filed On: 30-08-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: MJ RANPURA
• Keywords: Reopening of assessment; Principle of natural justice
• Section: 147; 148; 144

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL RAJKOT BENCH SMC, RAJKOT BEFORE SHRI A.L. GEHLOT (AM) I.T.A. NO.332/RJT/2011 (ASSESSMENT YEAR 2005-06) PRAVINSINH C JADEJA, HUF VS ITO, WD.1(3) BLOCK NO.285 RAJKOT VRUNDAVAN SOCIETY RAJKOT PAN : AAHHP0284J (APPELLANT) (RESPONDENT) DATE OF HEARING : 25-10-2011 DATE OF PRONOUNCEMENT : 25-10-2011 APPELLANT BY : SHRI MJ RANPURA RESPONDENT BY: WRITTEN SUBMISSION O R D E R THIS APPEAL OF THE ASSESSEE IS DIRECTED AGAINST TH E ORDER OF CIT(A), GANDHINAGAR DATED 01-07-2011 PERTAINING TO ASSESSME NT YEAR 2005-06. 2. THE FOLLOWING EFFECTIVE G4ROUNDS ARE TAKEN BY TH E ASSESSEE IN THE APPEAL: 3.0 THE LEARNED CIT(A) ERRED ON FACTS AS ALSO IN L AW IN DISMISSING GROUND OF APPEAL RELATING TO VALIDITY OF REOPENING OF ASSESSMENT U/S 147 OF THE ACT. 4.0 THE LEARNED CIT(A) ERRED ON FACTS AS ALSO IN LA W IN CONFIRMING ADDITION OF RS.4,04,720/- MADE BY ESTIMATING NET PR OFIT @8% ON ALLEGED TURNOVER OF RS.50,59,000/-. THE ADDITIO N MAY KINDLY BE DELETED. ITA NO.332/RJT/2011 2 3. NONE APPEARED ON BEHALF OF THE REVENUE; HOWEVER, A WRITTEN SUBMISSION IS FILED. THEREFORE, THE APPEAL IS DISPOSED OF AFTER HEARING THE LD. AR OF THE ASSESSEE AND ON CONSIDERATION OF THE WRITTEN SUBMIS SION FILED BY THE REVENUE. 4. THE FACTS AS EMERGING FROM THE RECORDS ARE THAT IN THE COURSE OF ASSESSMENT PROCEEDINGS IN CASE OF M/S PAVAN CONSTRU CTION CO THE ASSESSING OFFICER NOTICED THAT THE ASSESSEE HAD ENTERED INTO CONTRACT WITH M/S SUTREJA & CO OF JUNAGADH AND THEY HAD ISSUED TDS CERTIFICATES RE FLECTING PAYMENTS OF RS.50,59,000 TO THE ASSESSEE WHEREAS THE ASSESSEE H AD NOT FILED HIS RETURN OF INCOME ALONG WITH THE AUDIT REPORT. THE ASSESSING OFFICER, THEREFORE, ISSUED NOTICE U/S 148 REQUIRING THE ASSESSEE TO FILE THE R ETURN OF INCOME. THE ASSESSEE, NEITHER FILED HIS RETURN OF INCOME NOR HAS ATTENDED THE ASSESSMENT PROCEEDINGS IN RESPONSE TO STATUTORY NOTICES ISSUED. THE ASSES SING OFFICER, APPLIED A NET PROFIT RATE OF 8% ON THE GROSS RECEIPT OF RS. 50,59 ,000 AND BROUGHT AN AMOUNT OF RS.4,04,720 TO TAX IN AN EX PARTE ASSESSMENT FRAMED U/S 144 OF THE ACT. THE APPEAL FILED BEFORE CIT(A) WAS ALSO DECIDED EX PART E AGAINST THE ASSESSEE. 4. BEFORE ME THE LD.AR OF THE ASSESSEE PLEADED THAT IN THE INTEREST SUBSTANTIAL JUSTICE THE ASSESSEE MAY BE PROVIDED WI TH ANOTHER OPPORTUNITY OF HEARING FOR PRESENTING HIS CASE BEFORE THE ASSESSIN G OFFICER. HE UNDERTOOK THAT THE ASSESSEE SHALL, AT HIS BEST ENTIRETY, CO-OPERAT E WITH THE ASSESSING OFFICER IN THE DO NOVO ASSESSMENT PROCEEDINGS IF THE MATTER IS RESTORED TO HIS FILE. THE LD.DR, IN HIS WRITTEN SUBMISSION HAS PLACED RELIANC E ON THE ORDER OF THE CIT(A). ITA NO.332/RJT/2011 3 5. I HAVE CONSIDERED THE SUBMISSIONS OF THE LD.AR A ND THE WRITTEN SUBMISSION OF THE REVENUE. I NOTICE THAT THE ASSESSING OFFICER AS WELL AS THE CIT(A) HAVE PASSED EX PARTE ORDERS. WHEREAS NOW THE ASSESSEE P LEADS THAT HE DESERVES ANOTHER OPPORTUNITY FOR PRESENTING HIS CASE BEFORE THE ASSESSING OFFICER. THIS REQUEST, IN MY OPINION IS NOT UNREASONABLE WHEN SEE N FROM THE ANGLE OF PRINCIPLES NATURAL JUSTICE. THEREFORE, AS A MATTER OF SUBSTANTIAL JUSTICE I DEEM IT FIT TO RESTORE THE MATTER TO THE FILE OF THE ASSESSING OFFICER. ACCORDINGLY I SET ASIDE THE ORDERS OF AUTHORITIES BELOW AND DIRECT THE ASSE SSING OFFICER TO REFRAME THE ASSESSMENT AFTER HEARING THE ASSESSEE. THE ASSESSE E IS DIRECTED TO EXTEND HIS FULLEST CO-OPERATION IN THE ASSESSMENT PROCEEDINGS. 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS TRE ATED AS ALLOWED, FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 25-10-2011. SD/- (A.L. G EHLOT) ACCOUNTANT MEMBER RAJKOT, DT : 25 TH OCTOBER, 2011 PK/- COPY TO: 1. ASSESSEE 2. REVENUE 3. THE CIT(A), GANDHINAGAR 4. THE CIT, GANDHINAGAR 5. THE DR, I.T.A.T., RAJKOT (TRUE COPY) BY ORDER ASSTT.REGISTRAR, ITAT, RAJKOT