SMT. SANKAR LAKSHMI, RAJAPALAYAM V. ITO, WARD-2, VIRUDHUNAGAR

ITA 3349/CHNY/2019

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 6869 (ITAT-CHENNAI)
• Duration Of Justice: 1 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-01-2020
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: C
• Assessment Year: 2012-2013
• Appeal Filed On: 10-12-2019
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: J PAVITHRAN KUMAR
• Keywords: Retrospective amendment
• Section: 40(a)(ia)

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL C (SMC) BENCH : CHENNAI , , BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ./I.T.A. NO. 3349/CHNY/2019 ! ' / ASSESSMENT YEAR : 2012-2013. SMT. SANKAR LAKSHMI NO.132, RICE MERCHANT COMPOUND, NAIDU SOUTH STREET, CHETTIARPATTI, RAJAPALAYAM. VS. THE INCOME TAX OFFICER, WARD -2, VIRUDHUNAGAR 626 001. [PAN AHRPL 8112C] ( / APPELLANT) ( /RESPONDENT) # $ % / APPELLANT BY : SHRI. S. SANKARALINGAM, CIT (RETD) &' # $ % /RESPONDENT BY : SHRI. J. PAVITHRAN KUMAR, JCIT. ( ) $ * /DATE OF HEARING : 30-01-2020 +,'! $ * /DATE OF PRONOUNCEMENT : 31-01-2020 / O R D E R PER INTURI RAMA RAO , ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE ASSESSEE DIRECTED AG AINST THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEAL S)-1, MADURAI, (CIT(A) FOR SHORT) DATED 17.10.2019 FOR THE ASSE SSMENT YEAR (AY) 2012-2013. ITA NO.3349/2019 :- 2 -: 2. THE ASSESSEE RAISED THE FOLLOWING GROUNDS OF APPEAL : 1. THE LEARNED CIT (APPEALS) FAILED TO NOTE THAT THE ASSESSMENT ORDER IS WITHOUT JURISDICTION, OPPOSED TO THE FACTS AND CONTRARY TO LAW AND THEREFORE LIABLE TO BE QUASHED. 2. THE LEARNED CIT (APPEALS) OUGHT TO HAVE SEEN THA T THE JCIT DID NOT HAVE THE POWER TO TRANSFER THE CASE OF ONE ASSE SSEE FROM ONE ASSESSING OFFICER TO ANOTHER ASSESSING OFFICER AND THEREFORE SHOULD HAVE CANCELLED THE IMPUGNED ORDER. 3.THE LEARNED CIT (APPEALS) OUGHT TO HAVE GIVEN ADE QUATE OPPORTUNITY TO THE ASSESSEE AND SHOULD NOT HAVE DEC IDED THE APPEAL ON EX-PARTE BASIS. 4. THE LEARNED CIT (APPEALS) FAILED TO NOTE THAT TH E MAJOR PORTION OF THE CLEARING AND FORWARDING CHARGES REPRESENTS REIM BURSEMENT OF VARIOUS EXPENSES INCURRED ON BEHALF OF THE ASSESSEE TO VARIOUS SHIPPING COMPANIES FOR WHICH THERE IS NO LIABILITY TO DEDUCT TAX AT SOURCE AS THEY HAD OBTAINED NECESSARY CERTIFICATES FROM THE INCOME TAX AUTHORITIES. 5. WITHOUT PREJUDICE TO THE ABOVE, THE LEARNED CIT( APPEALS) OUGHT TO HAVE RESTRICTED THE DISALLOWANCE TO 30% AS THE AMEN DMENT IN SECTION 40(A)(IA) WILL HAVE RETROSPECTIVE EFFECT. 6. THE APPELLANT CRAVES LEAVE TO ADD, ALTER OR AMEN D OR MODIFY ANY OR ALL THE GROUNDS BEFORE OR AT THE TIME OF HEARING . 3. FROM THE PERUSAL OF THE IMPUGNED ORDER, IT IS CLEA R THAT THE LD. CIT(A) HAD PASSED EX-PARTE ORDER AS ASSESSEE HA D FAILED TO COMPLY WITH SEVERAL HEARING NOTICES DESPITE DUE SERVICE OF NOTICE OF HEARING. 4. EVEN BEFORE US, THE ASSESSEE COULD NOT MAKE OUT A C ASE DEMONSTRATING AS TO HOW HE WAS PREVENTED FROM NOT ENTERING APPEARANCE BEFORE LD. CIT(A). IN THE CIRCUMSTANCES , THOUGH WE DO NOT FIND ANY FALLACY IN THE ORDER OF THE LD.CIT(A) IN PASSING EX-PARTE ITA NO.3349/2019 :- 3 -: ORDER. KEEPING IN VIEW THE STATUTORY PRINCIPLE OF LAW THAT THE INCOME TAX PROCEEDINGS ARE ADVERSARIAL PROCEEDINGS. THE OBJECTS OF PROCEEDINGS ARE ONLY TO DETERMINE THE CORRECT TAX L IABILITY IN ACCORDANCE WITH LAW. THEREFORE, WE REMIT THE APPEA L BACK TO THE FILE OF THE LD. CIT(A) FOR FRESH ADJUDICATION SUBJECT T O PAYMENT OF E25,000/- TOWARDS PRIME MINISTER NATIONAL RELIEF FU ND. WE MAKE IT CLEAR THAT LD. CIT(A) SHALL HEAR THE APPEAL ON BEI NG SATISFIED HIMSELF THAT ASSESSEE MADE CONTRIBUTION TOWARDS PRIME MINI STER NATIONAL RELIEF FUND. THUS, THE APPEAL FILED BY THE ASSESSEE IS PA RTLY ALLOWED FOR STATISTICAL PURPOSE . 5. IN THE RESULT, THE APPEAL FILED BY THE ASSESSEE IS PARTLY ALLOWED FOR STATISTICAL PURPOSE ORDER PRONOUNCED ON 31 ST DAY OF JANUARY, 2020, AT CHENNAI. SD/- SD/- ( ) (GEORGE MATHAN) /JUDICIAL MEMBER ( ) (INTURI RAMA RAO) /ACCOUNTANT MEMBER -) / CHENNAI . / DATED: 31ST JANUARY, 2020. KV /0 $0& *12032'* / COPY TO: 0 1 . # / APPELLANT 3. 0 ( 4*056 / CIT(A) 5. 278 0& * 9 / DR 2. &' # / RESPONDENT 4. 0 ( 4* / CIT 6. 8:0;) / GF