VIJAYDURG PORTS P. LTD, MUMBAI V. ITO 3(3)4, MUMBAI

ITA 3379/MUM/2015

• Counselvise Citation: [2016] 131 COUNSELVISE.COM (IT) 3446 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 2 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-08-2016
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: I
• Assessment Year: 2011-2012
• Appeal Filed On: 03-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: A K KARDA M
• Keywords: Opportunity of being heard
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH I , MUMBAI BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND SHRI AMARJIT SINGH , JUDICIAL MEMBER IT A NO. 3379 /MUM/20 15 : (A.Y : 20 11 - 12 ) M/S. VIJAYDURG PORTS PVT. LTD., C/O. THAR & CO., 2 ND FLOOR, CAPRI, ANANT KANEKAR MARG, BANDRA (E), MUMBAI 400 050. PAN : AACCV5734D ( APPELLANT ) VS. ITO - 3(3)(4), MUMBAI (RESPONDENT) ASSESSEE BY : NONE REVENUE BY : SHRI A.K. KARDAM DATE OF HEARING : 20 /0 7 /2016 DATE OF PRONOUNCEMENT : 26 /0 8 /2016 O R D E R PER G.S. PANNU , AM : THE CAPTIONED APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF CIT(A) - 8 , MUMBAI DATED 27 . 02 .20 15 , PERTAINING TO THE ASSESSMENT YEAR 20 11 - 12 , WHICH IN TURN HAS ARISEN FROM THE ORDER PASSED BY THE ASSESSING OFFICER D ATED 29 . 01 .20 14 UNDER SECTION 143(3) OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT). 2. INSPITE OF ISSUANCE OF NOTICE, NONE APPEARED ON BEHALF OF THE ASSESSEE AT THE TIME OF HEARING, THEREFORE, WE PROCEED TO DECIDE THE APPEAL EX PARTE QUA THE ASSESSEE A FTER HEARING THE LD. DR ON MERIT IN TERMS OF RULE 24 OF THE APPELLATE TRIBUNAL RULES, 1963. 2 M/S. VIJAYDURG PORTS PVT. LTD. ITA NO. 3379 /MUM/2015 3. IN THIS APPEAL, THE FIRST AND THE FOREMOST ISSUE WHICH EMERGES IS THAT THE CIT(A) HAS DISPOSED OF THE APPEAL OF THE ASSESSEE EX PARTE WIT HOUT DECIDING ON MERITS OF THE G ROUNDS RAISED BEFORE HIM. 4. IN BRIEF, THE RELEVANT FACTS ARE THAT ASSESSEE IS A COMPANY WHOSE RETURN OF INCOME FOR ASSESSMENT YEAR 201 1 - 1 2 WAS SUBJECT TO SCRUTINY ASSESSMENT WHEREBY THE TOTAL INCOME WAS ASSESSED AT RS. 1,27,37,192 / - AS AGAINST TH E RETURNED LOSS OF RS.7, 92,242 / - . IN THE SCRUTINY ASSESSMENT, VARIOUS ADDITIONS WERE MADE TO THE RETURNED INCOME , WHICH WERE CHALLENGED IN APPEAL BEFORE THE CIT(A). CIT(A) HAS DISMISSED THE APPEAL WITHOUT GOING INTO THE MERITS OF THE CASE AS ACCORDING TO HIM ASSESSEE WAS NOT INTERESTED IN PURSUING THE APPEAL. AS PER CIT(A) NOBODY APPEARED ON BEHALF OF THE ASSESSEE INSPITE OF ISSUING OF NOTICE OF HEARING. 5 . AT THE TIME OF HEARING, IT WAS POINTED OUT TO THE LD. DR THAT IN THE PRESENT CASE, CIT(A) HAS DI SPOSED OF THE APPEAL OF ASSESSEE BY NOTICING THE ABSENCE OF ASSESSEE WITHOUT GOING INTO THE MERITS OF ISSUES RAISED BEFORE HIM, WHICH IS IN CONTRAVENTION OF THE REQUIREMENTS OF SEC. 250(6) OF THE ACT. THE LD. DR HAS NOT DISPUTED THE FACT THAT APPEAL HAS B EEN DISPOSED OF BY THE COMMISSIONER (APPEALS) WITHOUT OPINING ON THE MERITS OF ISSUES RAISED BEFORE HIM. 6. HAVING CONSIDERED THE ORDER OF CIT(A), IN OUR VIEW, THE ORDER OF CIT(A) IS UNSUSTAINABLE INASMUCH AS THE APPEAL HAS BEEN DISMISSED IN LIMINE WITHOU T ADVERTING TO THE MERITS OF GROUNDS RAISED BEFORE HIM. 3 M/S. VIJAYDURG PORTS PVT. LTD. ITA NO. 3379 /MUM/2015 SEC. 250(6) OF THE ACT OBLIGATES THE COMMISSIONER (APPEALS) TO DISPOSE OF THE APPEAL IN WRITING BY STATING THE POINT S FOR DETERMINATION, THE DECISION THEREON AND THE REASONS FOR SUCH A DECISION. THE SAID APPROACH IS CONSPICUOUS BY ITS ABSENCE IN THE IMPUGNED ORDER OF CIT(A) AND, THEREFORE, ON THIS COUNT ITSELF THE IMPUGNED ORDER OF CIT(A) IS UNSUSTAINABLE. WE HOLD SO. UNDER THESE CIRCUMSTANCES, WE DEEM IT FIT AND PROPER TO SET - ASIDE THE IMPUGNED OR DER OF CIT(A) AND REMAND THE APPEAL BACK TO HIS FILE FOR ADJUDICATION AFRESH AS PER LAW AFTER ALLOWING THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED, AS ABOVE. ORDER PRONOUNCED IN THE OPEN COUR T ON 2 6 T H AUGUST, 2016. SD/ - SD/ - ( AMARJIT SINGH ) JUDICIAL MEMBER ( G.S. PANNU ) ACCOUNTANT MEMBER MUMBAI, DATE : 2 6 T H AUGUST , 2016 * SSL * COPY TO : 1) THE APPELLANT 2) THE RESPONDENT 3) THE CIT(A) CONCERNED 4) THE CIT CONCERNED 5) THE D.R, I BENCH, MUMBAI 6) GUARD FILE BY ORDER DY./ASSTT. REGISTRAR I.T.A.T, MUMBAI